The company achieved revenue of 434.7655 million yuan in the third quarter, an increase of 86.20 percent over the same period last year, and a net profit of 30.6112 million yuan, an increase of 175.83 percent. From the beginning of the year to the end of the reporting period, revenue reached 1.109388 billion yuan, an increase of 125.35 percent over the same period last year, and net profit of 103.4976 million yuan, an increase of 412.67 percent over the same period last year.
Improvement in cost share during the period when a smart city became a high growth engine
The company continued to maintain a high growth trend in the third quarter, on the one hand, because the subsidiary CLP Xingfa consolidated its report in September last year, resulting in a low base for the comparison period, and on the other hand, because counter-terrorism, public security and smart city business continued to grow, and the parent company's original power transmission and distribution business growth also changed from negative to positive. The company's three-fee expenditure accounted for 17.59% of revenue in the third quarter, down from 25.24% in the same period last year, among which sales expenses and management expenses decreased significantly.
Smart City-- consolidate advantages and achieve in-depth development at the same time
The company has the "top nine" qualification in the smart city construction industry, covering the planning, design, construction, investment and operation of the smart city, providing the overall solution of the smart city, and covering major cities throughout the country. contracted more than 1500 information system integration projects, won the trust of the government, the military and high-end customers in the industry. In the first half of the year, the company successively won bids for projects totaling 398 million yuan in Nanjing, Hohhot and Chuzhou, and participated in the security work of the G20 Summit in Hangzhou, providing it with a number of high-tech anti-terrorism equipment and systems, such as explosion-proof equipment, and currently tracking orders of about 20 billion. During the reporting period, CLP Xingfa acquired Nenjiang Huaqi Wisdom Network Technology Co., Ltd., developing into intelligent agriculture, rural e-commerce, "Internet + regional economy" and other intelligent cities, so as to create a new profit growth point for the company.
Increase and complete to enhance the strength of the company
The company made a non-public offering of shares in October, raising 1.05 billion yuan. The funds raised are mainly used for the industrialization projects of robots and drones in the field of public safety and counter-terrorism, the construction project of adaptive intelligent charging pile for electric vehicles based on wired / wireless transmission, and the production line construction project of intelligent telecontrol (high-speed rail signal) power security system, in order to seize the development opportunity of public safety and anti-terrorism equipment industry. And the country has made great efforts to develop market opportunities for the power industry, such as high-speed rail, urban rail transit and new energy vehicle charging piles, with an estimated internal rate of return of 19.91%, 20.93% and 15.48%.
Investment suggestion
The company focuses on counter-terrorism, public safety and smart cities, while providing intelligent new energy, intelligent transmission and distribution equipment and components, power design and power service package solutions to achieve intelligent urban management. We expect the net profit of return to the mother in 2016-17-18 to be 1.44 pound 1.60 / 174 million yuan, and earnings per share 0.20 pound 0.23 quarter yuan, giving it an "overweight" rating.