Main points of investment:
Maintain and increase holdings. The company accelerated the promotion of businesses such as Zhicheng model / smart health care / smart energy conservation, raising the company's EPS in 2016 / 17 to 0.19amp 0.25RMB (formerly 0.18amp 0.23RMB). NB-IoT standardization promotes the "Internet of everything", benefiting from the Internet of things and smart city craze, accelerating the layout of various business segments of smart city, giving the company 73 times PE in 2016, raising the target price to 13.87 yuan, and increasing its holdings.
Recommendation logic one: increase the strength of financing. 1) the application for a non-public offering (the reserve price is 8.58 yuan, and the current stock price is about 17.7% higher than the fixed price) is pending approval by the Review Committee on March 2, 16; 2) this increase is scheduled to raise no more than 1 billion yuan. The direction of fund-raising is smart energy saving and user-side energy Internet platform construction and operation, smart medical care and smart pension platform construction, etc. 3) after the completion of the fixed increase, the company will accumulate more experience in the construction of city and platform projects in emerging business areas.
Recommended logic 2: speed up the layout of smart medicine. 1) plan to subscribe for the newly issued shares of Sensi Information, improve the medical industry chain and expand the scale of customers through its "Internet + Disinfection quality Control" information platform; 2) deepen cooperation with Chengdian and accelerate the layout of medical business (electronic medical records, etc.); 3) build an urban smart medical platform, accelerate medical informatization / medical big data, and provide more value-added services for B / C end. 4) the pension layout has been started, and it is expected that there will be more layouts in telemedicine / consumables / rehabilitation care in the future.
Recommended logic 3: Zhicheng / smart energy saving acceleration. 1) has 8 Zhicheng companies, the national layout of Zhicheng has achieved initial results, taking high-end consulting as the lead to promote the landing of various market segments; 2) winning the bid for BIM technology pilot promotion service project, Zhicheng will continue to promote; 3) strengthen energy consumption monitoring, energy-saving technical transformation, etc., undertake more than 400 buildings in Shanghai itemized metering projects (about 1 market share), plan to select 25 high-quality customers for contract energy management 4) will actively explore areas such as wisdom and environmental protection.
Core risks: Zhicheng / smart health care / smart energy saving is not as expected, business integration risk, etc.
