Main points of investment

Event: when the company released its annual report in 2016, the company's total operating income in 2016 was 981 million yuan, down 12.56 percent from the same period last year, and the net profit belonging to shareholders of listed companies was 60 million yuan, down 2.38 percent slightly.

It is proposed to distribute 1.00 yuan cash dividend (including tax) to all shareholders for every 10 shares.

Strengthen the input of IT operation and maintenance, control costs and increase gross profit margin. The company's net profit in 2016 was 56 million yuan, a slight decrease of 2.28%. The operation of the company is stable and the business operation is normal. The scale of infrastructure investment of major customers IT has declined, and the company has strengthened the resource investment and market expansion of IT operation and maintenance services. The revenue of IT operation and maintenance services in 2016 was 108 million yuan, an increase of 30.99% over the same period last year.

The company strengthened cost control, with management expenses down 7.38% and financial expenses down 8.76% year-on-year.

The company's annual comprehensive gross profit margin was 19.69%, an increase of 2.07 percentage points over 2015.

The advantage of customer resources is significant, and the product is well-known. The company is one of the few domestic service providers providing IT infrastructure construction and operation and maintenance services for six major national commercial banks at the same time. Is the domestic banking business processing, big data field well-known software solution provider, the company's Starring and iMOIA are well-known products in the industry.

Build their own core competence and expand customer resources. The company combines the development trends of financial industry information technology, such as de-IOE, mainframe downshift, localization, and the transformation of application systems to cloud computing architecture, with financial transaction cloud, financial big data, cloud infrastructure construction and management as the core, to promote the company's brand on the basis of products, and expand new customers in the financial industry.

Profit forecast and investment advice: the company's EPS from 2017 to 2019 is expected to be 0.59, 0.68, 0.78 yuan respectively, covering and giving "overweight" investment rating for the first time.

Risk hint: traditional customers, traditional business demand decline risk; market competition aggravates risk