Risk factor
Strong & resilient to price shocks
Profitability factor
Very low or no dividends
About
State Grid Information & Communication Co., Ltd. (SGICC) specializes in information technology and communication services, primarily serving businesses within the energy sector. The company delivers a comprehensive suite of cloud-based solutions, encompassing cloud network infrastructure, cloud platforms, cloud applications, and integrated cloud-network services. Its objective is to foster the advancement of the energy Internet and facilitate the digital transformation of enterprises. SGICC's cloud network infrastructure segment provides the foundational support for its cloud platforms and applications, offering essential components such as servers, storage, and network equipment. This division also focuses on value-added telecommunications operations and the construction of both communication and cloud infrastructures. The cloud platform business furnishes the core environment for seamless cloud and network integration. SGICC designs, develops, and integrates various cloud platform products, including cloud operating systems, service centers, distributed service buses, and other cloud components. It also crafts customized enterprise-level cloud solutions tailored to specific client application needs. Furthermore, the company's cloud application business is dedicated to creating and implementing application software that runs on its underlying cloud network infrastructure and platforms. This involves the bespoke design, development, and promotion of cloud application software for enterprises, covering areas such as power marketing, Enterprise Resource Planning (ERP), corporate portals, and energy trading systems. Beyond these core offerings, SGICC provides extensive enterprise operation support services. These include operational and maintenance (O&M) consulting, system optimization, and ongoing O&M for clients' information and communication infrastructure, software platforms, and applications. The company also offers visualization services to enhance enterprise operations. SGICC serves a diverse clientele, including utilities providing water, gas, and heat, other public utility providers, electricity sales companies, and various energy service firms. The company's main office is located in Chengdu, China.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV