Key points of investment
Incident: A few days ago, we had an exchange with senior management of Jinqiao Information.
A high-quality enterprise in the field of multimedia information systems. The company has always focused on the development and application of various multimedia information system products, and has formed a complete business system, covering fields such as multimedia conferences, emergency command centers, and science and technology court systems. The company's revenue in 2014 was 588 million yuan, an increase of 1.29% over the previous year; Guimu's net profit was 38.11 million yuan, an increase of 2.43% over the previous year. The company's total revenue for the first three quarters of 2015 and net profit to the mother were 338 million yuan and 7.16 million yuan respectively. Since most of the company's revenue was settled in the fourth quarter, overall, the company's 2015 revenue situation remained stable.
Being in a hot industry, demand is growing rapidly. The multimedia information system industry integrates cutting-edge technologies in various fields within the information industry, such as computer technology, digital audio and video technology, network technology, and intelligent control technology, and its development is strongly supported by national policies. At the same time, technology related to multimedia information systems is in the process of rapid development. The continuous advancement of technology has not only promoted the continuous upgrading of the overall system, but also further reduced the cost of system construction, making multimedia industry applications that were previously impossible due to financial and technical issues gradually become a reality. Therefore, the market development space for multimedia information systems is very broad, and market demand is showing a trend of rapid growth.
The strategic layout is clear, and a breakthrough in performance is expected. The company has been focusing on the AVIT (multimedia information system) field for a long time, and has accumulated sufficient technical advantages and channel advantages to form an excellent brand effect. At present, the prospects for the AVIT industry are very broad. Competitors within the industry are highly fragmented. The company's market share is less than 1%, and there is still great potential for growth in its main business. On the one hand, the company continues to dig deeper into the segments it has already covered, and continues to increase its technological leadership in its main business. On the other hand, the company is also looking for new business entry points to expand the company's business scope to more fields.
Valuation and ratings. Based on the company's current performance and future development expectations, we expect the company's diluted EPS in 2015-2017 to be 0.53 yuan, 0.63 yuan, and 0.73 yuan respectively. Based on the average valuation level of listed companies in the information technology service industry, we gave the company a price-earnings ratio of 150 times, and the corresponding target price was 95 yuan.
Risk warning: the risk of regional concentration in the market; the risk of large fluctuations in market demand.