Events:

1. The company's total operating income in 2014 was 172.7645 million yuan, an increase of 9.33% over the same period last year; operating profit was 244700 yuan, down 89.57% over the same period last year; the total profit was 11.971 million yuan, an increase of 11.31% over the same period last year; the net profit belonging to shareholders of listed companies was 10.3132 million yuan, an increase of 50.01% over the same period last year.

2. The plan for profit distribution and capital accumulation fund to increase equity is as follows: based on the company's total share capital of 160000000 shares on December 31, 2014, a cash dividend of 0.20 yuan (including tax) is distributed to all shareholders for every 10 shares, and a total cash dividend of 3200000 yuan (including tax) is distributed. Use the capital accumulation fund to increase the share capital of all shareholders by 5 shares for every 10 shares, that is, 0.5 shares per share, for a total increase of 80000000 shares.

3. the issue of shares to purchase assets by the company shall be approved by the China Securities Regulatory Commission. The assets to be purchased in this transaction are 75% of Shangyou Group and 100% of Shangyou International. Shangyou Group's 75% stake was finally priced at 149.21 million yuan and paid to Shangyou Holdings in cash, while Shangyou International's 100% stake was finally priced at 60.79 million yuan and issued 4930251 shares to Tule Investment at a price of 12.33 yuan per share. After deducting non-recurring profits and losses, the consolidated statements realized by Shangyou Holdings and Tule Investment commitment Shangyou Group in 2014, 2015 and 2016, the net profit belonging to the shareholders of the parent company is not less than 25 million yuan, 30 million yuan and 35 million yuan. After the completion of this transaction, the profitability of listed companies has been greatly improved.

Viewpoint:

1. The company specializes in providing vehicle networking IT services and supporting software and hardware, the main business covers construction machinery, commercial vehicles, agricultural machinery and other professional application fields. The company's traditional business of engineering machinery, commercial vehicles in the field of stock customers bring stable revenue, and with the increase in the number of new users, hardware shipments and service users have increased. Emerging business mainframe after-factory market, agricultural machinery and other areas of business has made considerable progress, of which the field of agricultural machinery has made an increase of 326%.

2. The company's business model has gradually developed from an initial supplier of supporting products to a service provider, gradually from "responding to customer needs" to discussing design requirements with customers, and began to guide some customers to explore new needs. In 2014, the company's original B2B business model was continuously optimized, and actively implemented the O2O mobile Internet model, launching a new mobile Internet product-"Cloud access". To provide convenient, honest and real-time logistics capacity trading platform services for both supply and demand of transport capacity, aimed at solving the three stubborn problems in the field of logistics information: unable to find information, finding false information and finding out-of-date information.

3. The company actively carries out the industrial chain layout of the Internet of things through capital operation, and the acquisition Merchant Friends Group has been examined and approved unconditionally by the M & A Committee of listed companies of the China Securities Regulatory Commission. The core business of Shangyou Group is software outsourcing to the Japanese market, providing complete enterprise business intelligence system solutions, including software product development and sales, technical services and corresponding system integration, etc., serving customers including international well-known large manufacturing enterprises and financial enterprises, service areas related to supply chain management, logistics, food and pharmaceuticals, etc., taking into account both Japanese and domestic markets.

With the help of this cooperation, Tianze Information will quickly obtain a large number of software development talents and rich software development experience, be involved in other industry applications of the Internet of things except IT service of the Internet of cars, strengthen the IT service capability of the Internet of things based on logistics, strengthen the IT service capacity of the Internet of things including passenger cars and elevators, further improve the IT service capacity of the Internet of things and expand the scope of customer service. At the same time, in terms of customer structure, the customer base of Tianze information will be greatly expanded, rapidly expand the customer base of non-construction machinery, and obtain overseas business orders from international customers.

Conclusion:

The company will focus on IT services, expand its business around the industry applications of the Internet of things, and focus on balancing endogenous development and epitaxial expansion. It is estimated that the company's eps in 2015 and 2016 will be 0.14 yuan and 0.16 yuan respectively, and 164,143 times for PE, giving a "recommended" rating for the first time.