Summary of the report:
Performance summary: in 2016, the company achieved a total operating income of 316 million yuan, an increase of 20.94% over the same period last year, and a net profit of 38.891 million yuan belonging to shareholders of listed companies, an increase of 16.40% over the same period last year.
Air traffic control business continues to grow. During 2016, the revenue of the company's aviation and air traffic control business reached 149 million yuan, an increase of 31.23% over the same period last year, maintaining the rapid growth of the main industry. At the same time, the total amount of newly signed contracts in the field of air traffic control exceeded 150 million yuan, achieving continued growth on the basis of the rebound in performance in 2015. The company has a full set of military industrial qualifications and is one of the major military air traffic control systems and service providers. In 2016, the company contracted an 84% increase in newly signed military contracts over the previous year. During the 13th five-year Plan period, the overall investment scale of domestic air traffic control system is expected to reach tens of billions of yuan. As one of the major domestic air traffic control products and service suppliers, the company's market share is in the forefront of domestic manufacturers. In 2017, air traffic control business is expected to continue to maintain rapid growth.
Image recognition has achieved a breakthrough, and intelligent transportation is growing rapidly. The revenue of the company's graphics and image business in 2016 was 42.8082 million yuan, an increase of 4.96% over the same period last year, while that of intelligent transportation products business was 28.856 million yuan, an increase of 44.75% over the same period last year. Since 2015, the company has focused on developing a new generation of intelligent vehicle license plate and type recognition technology, with a recognition accuracy of 99.60%, occupying a leading position in the industry. At the same time, significant progress has also been made in the research and development of 3D face acquisition products invested in 2015, with volume, accuracy, cost and other factors reaching the international leading level. The test product has been tested in Chengdu East Railway Station for one year, and more than 5 million people have been identified, with a correct recognition rate of 95.6%. At present, it has been extended to Chongqing, Guiyang and other railway stations for trial.
Investment suggestion: the company expects the company's EPS from 2017 to 2019 to be 0.22,0.32 and 0.50 yuan respectively, an increase of 26.46%, 48.45% and 53.65% respectively over the same period last year.
Risk hint: the development of face recognition and vr technology is not up to expectations, and the development of navigation industry is slow.