Main points of investment
With both customer expansion and business coordination, revenue grew by 56.51% in 2016: in 2016, the company achieved:
The operating income was about 1.05 billion yuan, an increase of 56.51% over the same period last year; the net profit of returning home was about 120 million yuan, an increase of about 39.20% over the same period last year. According to the 2016 Annual report, the number of customers of the company reached 666, an increase of 148 over 2015, and the incremental value reached a new high. In 2016, the income of the company's bank customers was about 605 million yuan, an increase of 64 percent over the same period last year. Judging from the data over the years, the income of the company's bank customers has reached a new level, which contributes to the growth of the company's performance. In 2016, the company realized: system integration business revenue of about 607 million yuan, an increase of about 57% over the same period last year; IT infrastructure services revenue of about 432 million yuan, an increase of about 56% over the same period last year. It shows that the company's system integration does not IT infrastructure services two types of business coordination does not promote the strategy has been perfectly realized.
The 13th five-year Plan of Banking Information Technology helps the company's performance growth: in July 2016, the CBRC issued Bank of China Ltd. Industry Information Technology 13th five-year Plan Supervision guidance (draft for soliciting opinions), and openly solicited opinions. We believe that this will bring a new engine to the company's business growth, especially the company's software business based on big data integrated intelligent operation and maintenance management system as the core.
The upwind of the third-party service station of IT infrastructure has ushered in hundreds of billions of market space: the scale of IT investment of users in key industries such as banking, telecommunications and government is expanding, and its requirements for system security and stability are also increasing. The data center IT infrastructure services market is growing rapidly, driven by these large, high-end customers. According to the forecast data of the forward-looking Industrial Research Institute, the third-party service industry of China's data center IT infrastructure has an average annual compound growth rate of 27% from 2017 to 2020, and the market size will reach 155.047 billion yuan by 2020.
Investment suggestion: we forecast that the EPS of the company from 2017 to 2019 is 0.46,0.62 and 0.81 yuan respectively. Maintain the buy-A rating with a 6-month target price of 21.62 yuan.
Risk hint: the current high gross profit margin of IT infrastructure services and the huge market growth space in the future will attract more domestic and foreign service providers or system integrators to enter the industry, so that the future market competition will be more fierce, product prices may decline, and market share may be further divided, thus bringing great challenges and threats to existing service providers.
