SED(SZ:000032) GF SECURITIES·2025-12-18 01:48Investment Rating - The report assigns a "Buy" rating to the company with a current price of 18.54 CNY and a fair value of 22.26 CNY [6]. Core Insights - The company is a leading provider of cleanroom technology services and is actively expanding its cloud and data services, which are expected to benefit from the increasing demand for government and enterprise cloud adoption [2][6]. - The company has undergone several asset restructurings, focusing on digital information services and industrial services, with significant ownership by China Electronics [12][15]. - The cleanroom market is projected to grow significantly, with the company positioned to benefit from the expansion of the domestic electronics industry [6][19]. Summary by Sections Company Overview - The company was established in 1987 and has transformed through multiple acquisitions, including the purchase of China System in 2020, which shifted its focus to information and industrial services [12][15]. - As of Q3 2025, China Electronics holds a 42.25% stake in the company, which is a key player in the cleanroom engineering sector [15][19]. Financial Performance - Revenue has shown a compound annual growth rate (CAGR) of 16.4% from 2021 to 2024, increasing from 427.04 million CNY to 673.89 million CNY [22][24]. - The company reported a net profit of 3.30 million CNY in 2023, with expectations of maintaining similar levels in 2024 [22][24]. - The gross profit margin for the high-tech industrial engineering service segment has been stable, while the digital and information services segment has seen fluctuations [19][22]. Cloud and Data Services Market - The cloud services market is experiencing high growth, driven by government policies and the increasing need for digital transformation across various sectors [37][39]. - The company focuses on three main product lines within its cloud services: cloud computing and storage, data innovation, and digital government services [6][35]. - The government has set ambitious targets for the digital economy, which is expected to further boost the demand for cloud services [37][39]. Cleanroom Engineering Services - The cleanroom market is projected to reach 1,157 billion CNY in the electronics sector by 2025, with the company being a leading player in this space [6][19]. - The company has established strong partnerships with major clients in the semiconductor industry, enhancing its competitive position [6][19]. Profitability Forecast and Investment Recommendations - The report forecasts net profits of 238 million CNY, 278 million CNY, and 307 million CNY for the years 2025 to 2027, respectively [5][6]. - The company is valued at 253 billion CNY based on segment valuations, leading to a fair value estimate of 22.26 CNY per share [6].