Summary of the report:
The development of the company takes advantage of the policy of "Digital Fujian".
Xi Jinping, then governor of Fujian Province in 2000, made an accurate definition of "Digital Fujian" at a special meeting of the provincial government. Fujian has made outstanding achievements in information construction over the past 16 years. In the latest outline of the 13th five-year Plan of Digital Fujian, Fujian Province clearly put forward various tasks, such as speeding up the construction of government data cloud, deepening the sharing and opening of government data, promoting new government applications, and improving the public platform system. By 2020, an efficient and convenient online government will be built, with a core business information rate of 100% and a core data sharing rate of 80%. In the future, the company will continue to cultivate e-government market segments by combining the investment opportunities of the 13th five-year Plan of Digital Fujian and its own development strategy, vigorously develop electronic inspection and quarantine vertical service platform, Internet of things public service platform, small and medium-sized enterprise information cloud service public platform and other business.
Go deep into the vertical field of electronic inspection and quarantine to create an integrated service platform
The electronic inspection and quarantine backbone system of the AQSIQ is expected to come into operation on January 1, 2017. on the one hand, the AQSIQ system needs to complete the transformation and docking of the AQSIQ backbone system in the next 2-3 years. As the only contractor of the e-CIQ backbone system, the company has absolute technical advantages and resource advantages. On the other hand, based on the backbone system, the company will infiltrate from the G end to the B end and then to the C end, seizing users to create an integrated service platform in the vertical field of electronic inspection and quarantine. At that time, 40, 000 staff across the country will use the electronic inspection and quarantine platform, covering 1.1 million registered enterprises, and the number of enterprises handling business will reach 30-400000. Up to now, the company has successively set up Fujian Rongyifu and Zhejiang Shirong, and laid out the vertical service platform of electronic inspection and quarantine.
Set up Star Rongji to build an information cloud service platform for the Internet of things and small and medium-sized enterprises
In October 2015, the company, Xinyun big data, a wholly owned subsidiary of Fujian Electronic Information Group with the background of Fujian State-owned assets Supervision and Administration Commission, and Lin Weiguo, a natural person, contributed to the establishment of Xing Rongji, which has a 71% stake. Star Rongji owns the only franchise of the Internet of things public service platform in Fujian Province, undertakes the operation of the Internet of things public service platform business, formulates the Internet of things business development plan, and expands the Internet of things business market. In addition, Xingrongji has also set up a public platform for information-based cloud services for small and medium-sized enterprises in Fujian Province, which is only authorized by the government and operated exclusively, to provide ICT services, software services, government services, financial services, vocational education and other five major service sectors for SMEs, and will further expand e-commerce, corporate asset management, enterprise energy management, Internet of things and other services in the future.
Profit forecast and investment suggestion
It is estimated that the EPS of the company from 2016 to 2018 is 0.04,0.08 and 0.13 yuan respectively, corresponding to the current share price PE of 354X, 166X and 107X respectively. The company is expected to create three integrated service platforms: the electronic inspection and quarantine vertical service platform, the Internet of things public service platform and the SME information cloud service platform, giving the platform a certain valuation premium. And the company plans employee stock ownership plan to fully mobilize the enthusiasm of employees and achieve the long-term development and layout of the company. We believe that the initial reasonable PE range of the platform-level layout company is 180-190 times, corresponding to a reasonable valuation of 14.4-15.2 yuan in 2017, with a rating of "cautious recommendation".
Risk hint
1) the vertical field of electronic inspection and quarantine is not as expected; 2) the operation of the Internet of things public service platform is not as expected; 3) the information cloud service platform for small and medium-sized enterprises is not as expected.
