Main points of investment:
In 2013, the company achieved operating income of 655 million yuan, down 20.75% from the same period last year, and net profit of 7.28 million yuan, down 90.28% from the same period last year. Basic earnings per share was 0.014 yuan, down 90.27% from the same period last year. In the first quarter of 2014, the company achieved operating income of 85.05 million yuan, down 42.77% from the same period last year, and its net profit was 36.36 million yuan, an increase of 172.05%, and basic earnings per share was 0.07 yuan, an increase of 172.52%.
Summary of the report:
The decline in revenue was mainly due to a decline in sales of wind power and high-voltage products. The national investment in power grid construction in 2013 is a small year of investment, which is lower than the growth rate during the "Eleventh five-year Plan" period. From the perspective of the domestic market, after the explosive growth of the "Eleventh five-year Plan", the growth rate continues to slow, and the price of the whole unit remains low. The decline in revenue in the first quarter of 13 and 14 years was mainly due to a decline in revenue from wind power and high-voltage products. The company's investment income increased by 3049% in the first quarter of 14 years, mainly due to asset replacement, which greatly increased profits.
The company actively transformed Internet finance and signed two orders in Linfen, Zunyi. In the case of the decline in the prosperity of the electrical and wind power industries, the company transformed into Internet finance. In November 2013, the company acquired a 100% stake in Guohua Huiyin for 30 million yuan, and will continue to expand investment and equity participation, to build it into a national mobile payment, P2P online financial service model and other business-based Internet financial operators. Then, in February and April, the company signed strategic cooperation agreements with the Zunyi and Linfen municipal governments for the construction of a digital service platform, which opened the journey of promoting the company's Internet financial model to the whole country.
Be optimistic about the company's Internet financial model. The company serves more than 80% of small and micro businesses that cannot be covered by big banks. In addition to being unable to withdraw money, the future function of Urban all-in-one Card will completely replace cash and become a safe and reliable physical "currency" and the effect of "payment pass" that the company wants to achieve. On this basis, the company can also engraft merchants, engage in small loans, and develop a series of financial services in the future, such as commercial loans, small loans and so on. Through payment to obtain data assets such as flow information of small and micro merchants, payment information of individual customers, consumption habits, etc., to provide credit inquiry means for small and micro loan services for individuals and small and micro enterprises in the future, at the same time to achieve the accurate marketing of all kinds of goods in the local market. The company can get the commission income of the matchmaking deal without taking the risk. We are optimistic about the company's Internet financial model, which is beneficial to the Sifang.
Profit forecast and valuation. It is estimated that the company's 14-and 15-year EPS is 0.20,0.31, and the previous share price PE is 67X, 44X, maintaining the "overweight" rating. The target price is 20 yuan.