Event description
The company released its annual report for 2016, with an operating income of 1.15 billion yuan, an increase of 30.7% over the same period last year. The net profit attributed to shareholders of listed companies in the current period was 16.19 million yuan, down 30.8% from the same period last year.
Event analysis and conclusion
The company's business has undergone a major transformation, 16 years of company report data reference significance is limited, the future development of the company mainly rely on Dejing Electronics in Gome mobile phones, security mobile phones and other new areas to make breakthroughs.
Dejing Electronics'16-year performance far exceeded its commitment. Revenue reached 1.76 billion over-commitment by 11%, net profit by 69.74 million, and over-commitment by 19%. The main reason why Dejing's performance is much higher than expected is that the traditional mobile phone ODM and OEM business growth rate is much higher than expected.
With "security intelligence" as the core, we will create a leading brand of "safe intelligent life service" in civil and industry markets. The most important strategy of Sanlian Trading Company in 17 is to promote the development of its own brand mobile security smart terminal (Gome mobile phone), which has become the core entrance and data platform of the six strategic plates of Gome Group.
Take personal information security as the starting point of differentiation to build Gome brand mobile phones. The company has designed and completed two products of the GOME K series and the U series, which are scheduled to be released to the public in late March.
Gome intelligent life entrance platform, and A-share capital operation core platform. The company will become the core entrance and data platform of the six strategic sectors of Gome Group. Relying on the strong offline channel capacity and brand advantages of Gome Group, the company's two emerging businesses, Gome mobile phone and security mobile phone, are expected to develop rapidly on the shoulders of giants.
Investment rating and valuation
It is predicted that the EPS of the company from 17 to 19 is 0.63,0.95,1.26 yuan respectively. The company will be given a list price of 25.2 yuan and a highly recommended rating corresponding to a valuation of 40 times in 2017. Focus on the follow-up Gome mobile phone promotion and landing situation.
Risk hint
The shipments of safe mobile phones are not as expected, the competition in the ODM market is fierce, and the promotion of Gome's own brand is not as expected.