Events:
According to the company's 2016 annual report, by the end of 2016, total operating income had reached 1.385 billion yuan, an increase of 28.70% over the same period last year; net profit attributable to listed companies was 123 million yuan, up 1.30% from the same period last year; non-net profit was 112 million yuan, an increase of 25.56% over the same period last year; EPS0.28 yuan.
Of this total, the company Q4 achieved an operating income of 574 million yuan, an increase of 60.89% over the same period last year.
Viewpoint:
Financial IT product line is sound, the main business growth is eye-catching. The company's financial IT product line covers five sectors: financial software business, financial hardware business, financial services, financial consulting business and financial cloud, providing financial institutions with an integrated system solution that runs through the "front-middle-background" business. At present, the company's main business model is to sell traditional software to financial customers and provide corresponding IT services, which account for more than 70% of the company's total business volume, of which the sales of software products and service fees for software products account for about 60% of the company's main business income. The company's annual revenue in 2016 was 1.385 billion yuan, an increase of 28.70% over the same period last year, which was higher than the overall income growth level of 14.9% in China's software and information technology service industry. Among them, the company's IT industry product revenue increased by 28.37%, which was about double that of last year.
We will increase research and development and technological innovation, and actively transform financial science and technology service providers. On the basis of consolidating financial software products and services, the company is committed to transforming from a financial IT service provider to a full-format financial technology service provider, and actively arranges the business model revolution brought about by financial technology by expanding R & D investment and mergers and acquisitions. In the field of big data, the company strives to build the Finance big data Provincial key Enterprise Research Institute, combined with the profound accumulation of enterprises in the banking field, to create a series of financial big data platforms and tools. In the field of artificial intelligence, through independent research and development and industry cooperation, the company actively explores the application of artificial intelligence in risk control, precision marketing and other products to welcome the arrival of the era of human-computer interaction in the financial industry. In the field of cloud computing, the company has joined hands with Harmony Cloud Technology to build the container ecology of the financial industry. In the field of regional chain technology, the company participates in interest chain technology, which is supported by the alliance chain cloud service platform and guided by the application of block chain industry, and jointly explore a new Internet business operation model.
Promote the financial scene and promote the process of product platform. The company integrates "marketing tool system", "account stored value, payment system" and "ingenuity to home" WeChat account through the "Micro-craftsman O2O aggregation Cloud" of Shanghai Science and Technology Co., Ltd., and realizes the expansion and operation ability of multi-merchants and cross-channels with Saas mode. At the same time, the company strives to create platform products such as consumer finance cloud platform, cloud oil Wechat platform, Internet special asset management platform, supply chain finance platform and so on. Taking Hangzhou Xinyada Pantai Technology Co., Ltd. as the main body, the company cuts into the consumer financial technology service industry by creating a complete consumer financial technology platform. For banks, consumer finance companies, traditional merchants and other consumer finance industry chain participants to provide technology, scenarios, data, assets transactions of intelligent cloud platform services. Taking Hangzhou Youtong Information Technology Co., Ltd. as the main body, the company has set up an industry-leading Internet special asset management platform, which will provide professional valuation, fine adjustment, dealmaking, consulting and training services for the special assets business of financial institutions. At the same time, the company is steadily developing its existing product line, gradually expanding non-bank financial platforms, exploring cooperative operation platforms in the field of credit cards, and planning to develop cloud call centers, visual IVR and other application products. At the same time, speed up the production process, such as extending from image workflow to hardware products such as credit factories, online loan systems, information security and payment terminals.
There are obvious technological advantages in the field of environmental protection, and new technologies are used to expand new markets. In recent years, China has paid more and more attention to environmental protection and more and more stringent flue gas control standards. Tianming Environmental Protection, a subsidiary of the company, complies with the market trend, actively expands the new market with new technologies, and successfully develops a new technology of pulsed plasma flue gas desulfurization, denitrification, dust removal and mercury removal (PPCP), which not only has the technical advantages of integrated removal of harmful pollutants in ultra-clean emissions, but also reduces project investment. The characteristic of saving operating expenses. This technology has been applied to the Hanglian thermoelectric boiler flue gas treatment project, and the transformation was completed before the G20 Hangzhou Summit. The company's revenue from environmental protection industry products in 2016 was 352 million yuan, an increase of 31.01% over the same period last year, higher than the revenue growth of 28.37% of the company's IT industry products.
Conclusion:
It is optimistic that the company will maintain the steady growth of its main business in the future with its sound financial software product line and continuous expansion and upgrading of its products. It is optimistic that the company will vigorously develop and expand financial technology and products, as well as new technologies in the field of environmental protection to bring new profit growth space. From 2017 to 2019, the company is expected to achieve operating income of 17.37,21.41 and 2.569 billion yuan respectively, net profit of 1.45,1.88 and 210 million yuan, EPS of 0.33,0.43 and 0.48 yuan respectively, and corresponding PE of 58.78,45.52 and 40.64 times respectively.
Risk Tips:
R & D innovation is not as expected; business layout is not as expected.