Operating data:
The company achieved operating income of 480 million yuan from January to September 2014, an increase of 70.69% over the same period last year.
The net profit belonging to the shareholders of the listed company is 19.4993 million yuan, corresponding to the earnings per share of 0.02 yuan.
The increase in smart card revenue, the increase in overseas power plant business revenue, and the new revenue from mergers and acquisitions are the troika that promote the substantial growth of the company's operating income. In the first three quarters, the company achieved a total operating income of 480 million yuan, an increase of 70.69% over the same period last year; the comprehensive gross profit margin was 34.61%, a significant increase of 24.59% over the same period last year, and profitability was significantly improved. The company's revenue scale and profit level have risen, mainly due to (1) sales of A980 smart cards and smart password key chips, which are the leading integrated products in Tianyi, have steadily contributed to domestic revenue; (2) the recovery of the photovoltaic market has made the company's new energy business out of the quagmire, and overseas business revenue has soared year-on-year after the company classified European power station electricity revenue as its main business.
The expenses are well controlled and the main business breaks even. From January to September 2014, the company's expense rate during the period was 34.31%, a decrease of 21.79 percentage points over the same period last year. Among them, the management expense rate / financial expense rate decreased by 10.59% and 11.49% respectively compared with the same period last year, and only the sales expense rate increased slightly by 0.3%, mainly due to the new sales expenses of the acquired companies. Since 2014, the company's revenue / profit has risen rapidly, and the expense rate has fallen sharply, making the main business successfully turn around and remain near the break-even line.
The return on investment continues to grow. During the reporting period, the company's operating profit was 130.65 million yuan, of which the capital income was as high as 129.2857 million yuan, an increase of 78.6657 million yuan over the same period last year. It is mainly due to the substantial increase in investment income contributed by Jiangsu High Investment, a subsidiary, compared with the same period last year.
The layout of mobile Internet is full of ambition. During the reporting period, in order to implement the industrial strategy of transformation and upgrading, the company successively acquired the controlling shares of four lottery companies, namely, Beijing Wonderland Music, Shanghai Lottery, Shanghai Haoxuan and Beijing Ying Lottery, and became the most complete domestic lottery business layout. the industry leader with the most obvious advantage of backwardness, and provides an important customer flow base and strategic partner for intensive cultivation on the mobile Internet in the future. In addition, the company also accepted 68.24% of the shares of Beijing Palm Flying Technology Co., Ltd., successfully intervened in the mobile game business, and formed a mobile Internet layout of lottery + mobile games. We are optimistic about the prospect of the company's transformation and development.
Risk hint. Risks such as the lower-than-expected marketing of lottery and mobile games.
Profit forecast and valuation. We estimate that the company's EPS from 2014 to 2016 will be 0.22 yuan / 0.41 yuan / 0.52 yuan respectively, corresponding to PE44/24/17 times, to maintain the "overweight" rating.