Main points of investment:
1. Event
Gaohong shares released its 2014 annual report on the evening of March 17th. Gaohong shares achieved an operating income of 7.081 billion yuan in 2014, an increase of 13.99% over the same period last year. The net profit of shareholders belonging to listed companies was 38.7126 million yuan, with 0.10 yuan per EPS. The 2014 performance was slightly lower than expected, mainly due to a large increase in R & D investment, an increase of 127.68% over the same period last year, a net increase of 21.8499 million yuan, mainly invested in Internet innovation business.
two。 Our analysis and judgment.
(1) the income of IT chain retail business is based on reducing revenue and increasing efficiency; the enterprise information business sector and information service business sector (Internet business) for strategic investment in the future have increased significantly.
The company has seen obvious growth in the new business areas of strategic investment in the future, and has completed the transformation from traditional IT sales business to service providers for enterprise information applications; traditional IT sales business revenue has slightly decreased, business structure has been adjusted, and the business segment with small gross margin has been gradually compressed and tilted to the high gross margin plate.
(2) the layout of Internet business is beginning to achieve results and has great potential.
In 2014, the company focused on the layout of Internet business, integrated card exchange platform and Gaohong lottery website online trial operation, and achieved results.
3. Investment advice.
Based on the fact that the company will continue to increase its strategic investment in Internet innovation business and enterprise information business in the next two years, we slightly reduce the company's profit forecast for 2015-2016, and we expect the company's revenue for 2015-2016 to be 7.89 billion yuan and 8.804 billion yuan, respectively. The net profits of shareholders belonging to listed companies are 192 million yuan and 355 million yuan respectively, and the per share EPS is 0.33 yuan and 0.60 yuan respectively. The current stock price corresponds to 46 times and 25 times of PE respectively.
We value the potential of the company's Internet business sector, especially the company continues to build a 100 billion-level recharge platform for phone charges / traffic and a 10-billion-level integrated card exchange business platform around the hundreds of billion-level Internet phone recharge market. Establish the company's leading position in the Internet phone recharge and card exchange market, so continue to maintain the "recommended" rating.