Main points of investment
The company's main intelligent industry overall system solution, is the most professional smart city investment, construction, operation integrated service provider, with smart city industry "top three" certificate, strong ability to undertake large-scale and comprehensive projects: at present, the company has built the top-level design and specification of smart city. A series of industrial systems, such as smart city construction and operation and maintenance, smart city rail, smart building, smart railway, intelligent water conservancy, intelligent industrial equipment, marine equipment R & D and so on. With the upgrading and transformation of the construction industry, the popularization of the concept of green building, and the increase in the proportion of new green buildings, as an important subdivision of green buildings, the company is the first echelon of intelligent building enterprises. will be the first to benefit from the rapid growth of the industry scale.
The annual report and first-quarter results showed high growth, with newly signed orders exceeding expectations: the company's 2015 revenue was 665 million yuan, up 7.32%, and the return net profit was 77 million yuan, up 47.67%. The company's revenue in the first quarter was 135 million yuan, an increase of 41.41%, and the net profit returned to its mother was 6.332 million yuan, an increase of 78.16%. The growth rate of the company's performance much faster than the revenue growth in 2015 is mainly due to: 1) the increase in the comprehensive gross profit margin by 1.51 percentage points; 2) the increase in government subsidies by 4.66 million yuan; and 3) the proceeds of 16.2 million yuan from the sale of 13% equity in Guangdong Saiyi. In 2015, the total amount of new contracts signed by the company was 1.14 billion yuan, an increase of 178% over the same period last year, and the total amount of newly signed contracts in the first quarter was 117.2 million yuan. New orders continue to exceed expectations and will have a positive impact on performance in the next two years.
Establishment of a Colombian subsidiary abroad: on January 4, 2016, the company's board of directors decided to set up a Colombian subsidiary with its own capital of US $30 million, which is mainly engaged in computer software development and sales, computer information system integration and other business. The design of overseas companies, open up the company's market space, is conducive to the company's overseas business specialization, stronger, bigger, for the company to create a new profit growth point, but also the introduction of the company's exchange risk.
Domestic investment to set up wholly-owned subsidiaries: in January 2016, the company signed a strategic framework cooperation agreement with the government of Jishou City, Hunan Province, under which the two sides will carry out all-round cooperation in the top-level design, investment, construction, operation and maintenance of the smart city. the specific amount of investment has not been disclosed. In order to promote the agreement, the company established a joint venture with Jishou Network, Saiyi Intelligence and Nuoheng Information to form a new company, Hunan Gisai, with an investment of 25.5 million yuan and a 51% stake. This investment will enhance the competitiveness of the company and deepen the layout of the company's smart city strategy, which is expected to have a positive impact on the company's performance in the coming years.
Actively extend the industrial chain and expand the market space: the company sets up the intelligent transportation department to actively expand the scope of intelligent transportation business and enhance market competitiveness. Driven by intelligent transportation big data platform system, urban dynamic traffic guidance system and other products, we create revenue increment for the company through project construction, PPP cooperative operation and other modes.
Profit forecast and investment rating: assuming that the company's profitability and order-taking capacity remain at the previous level, and taking into account the company's extension growth, we estimate that the revenue from 2016 to 2018 will be 9 yuan, 12 yuan and 1.5 billion yuan respectively, the realized PE will be 0.30,0.38,0.46 yuan respectively, and the corresponding PE will be 49,38,31 times respectively. With reference to the valuation of the computer industry, there is great flexibility in valuation, taking into account the good growth of the company. We give a "buy" rating.
Risk tips: overseas business operation risk, investment M & A management risk, accounts receivable recovery risk, technological innovation risk.