Taiji shares (002368): Proposed to issue 1 billion convertible bonds to develop innovative and credible, cloud and industrial Internet

Taiji shares (002368): Proposed to issue 1 billion convertible bonds to develop innovative and credible, cloud and industrial Internet

Event: On October 16, 2019, the company issued an announcement that it plans to issue 6-year AA convertible corporate bonds with coupon rates of 0 respectively.

40% / 0.

60% / 1.

00% / 1.

50% / 1.

80% / 2.

00%, the issue size is 1 billion, the online subscription date is October 21, 2019, and the initial conversion price is 31.

61 yuan / share, can be converted into shares after six months from the end of the issuance.

Vigorously develop innovative and reliable, cloud and industrial Internet.

The company initially issued a plan in November 2018, and was reviewed and approved by the China Securities Regulatory Commission in June and September 2019. The funds raised this time were mainly used for industrial Internet service platform construction projects (4.

7.9 billion), Taiji Cloud Computing Center and Cloud Service System Construction Project (3.

00 ppm), Tai Chi’s innovative and trusted key technology and product development and industrialization projects (0.

7.2 billion) and supplementary working capital (1.

4.9 billion).

The overall unit of China Electronics Technology Innovation and Trustworthy Industry, “endogenous + extension” development innovation and trustworthiness.

In 2017, China Electronics Technology Corporation positioned Taiji shares as the overall unit of the Group’s innovative and trusted industry. In addition to endogenous growth, the company has successively acquired Huidian Technology (91% of shares), Kingdee Middleware (21% of shares), People’s CongressJincang (holding 38% of the shares) is part of the company’s OA, middleware, database and other fields. The fundraising project will accelerate the industrialization of the company’s innovative and trusted system.

Work with Huawei to achieve coordinated development.

Since 2015, the company has cooperated with Huawei to launch the Beijing Municipal Cloud Project. At present, the two parties have released joint solutions such as smart government affairs, government affairs cloud, Internet + government services, and smart tourism, and established a joint innovation laboratory in May 2019.
It is expected that Huawei will focus on chips and complete machines, and open up its basic platform capabilities for empowerment. 重庆耍耍网 As an integrator, Tai Chi will use industrial and application advantages to integrate ecological resources and achieve coordinated development.

The migration of government-enterprise cloudization brings huge business opportunities. The company grasps the interconnection of the industrial Internet and promotes the transformation of its operating model to products + services.

The company actively expands the government and enterprise market and formed an enterprise business group in early 2018.

This cloud computing center and cloud service system construction project will accelerate the company’s transformation to a cloud service provider. The industrial internet service platform construction projects mainly include Beijing and Xi’an industrial internet service platforms, as well as the acquisition of 9% equity of Huidian Technology.

Profit forecast: If all the convertible debt is converted into shares next year (the subsequent financial statements are based on this assumption), the net profit attributable to the mother will be 3 in 19-21.



00 ppm, the corresponding EPS is 0.



80 yuan, the current market value corresponding to PE is 35/23/16 times; if all are not converted, the estimated financial costs will increase 0/339/679 million yuan, the net profit attributable to the mother is 3.



93 trillion, EPS is 0.



92 yuan, the current market value corresponding to PE is 35/23/16 times, given a “buy” rating.

Risk warning: policy support is less than expected; competition is intensified; innovation business development is less than expected.