Event
1. The company released its 2016 annual report on the evening of April 14, with revenue of 330 million yuan, an increase of 15.57% over the same period last year, and net profit of 38 million yuan, an increase of 9.91% over the same period last year, of which 37.94 million was deducted from non-return net profit, an increase of 21.27% over the same period last year. At the same time, the company plans to pay a cash dividend of 1.00 yuan (including tax) for every 10 shares and increase 5 shares at the same time.
2. The company announced on the evening of April 16 that as the first candidate, China Mobile Limited Fujian Co., Ltd. won the two-stage public tender procurement project of wireless ring network equipment, with an amount of 10.5259 million yuan.
Brief comment
Improvement of business scale and optimization of business structure
With the rapid development of the 4G network, the trend of triple play is clear, the gross profit margin of the network maintenance industry has gradually stabilized, the company's business scale expanded orderly during the year, the number of employees increased to 1117, the scale increased by 19.47%, and the main business revenue increased by 15.57%. At the same time, the business structure has been gradually optimized, and the proportion of high gross profit business such as network optimization business and equipment software sales has steadily increased, driving the improvement of net profit margin and further promoting the growth of non-homed net profit.
Recently, the company frequently won the bid, as the first candidate Fujian Mobile wireless ring network equipment procurement (10.53 million yuan), entered the radio and television network market in Guangdong Province, won the bid China Mobile Limited Fujian (three years 113 million yuan) and Guizhou (three years 69 million yuan) network maintenance service procurement project, won the bid China Telecom Corporation Sanming company construction project (62.3 million yuan), the future business will enter a new stage of development.
Among them, what is worth mentioning is the latest bid-winning Fujian Mobile Wireless Ring Network equipment project. The project is the first example in the country to apply wireless ad hoc network technology to emergency repair of transmission interruption of communication operators'2G, 3G and 4G base stations, emergency command communications for disaster relief and rescue, and so on. It is expected that the average annual market size in Fujian will reach 100 million yuan in the next few years.
Expand the market smoothly and deepen the layout of innovation
During the year, the company completed the listing of IPO, raising 147 million yuan. Business capabilities to a new level. During the year, the company expanded its customers in iron towers, radio and television, military, municipal, overseas and other markets, among which overseas business closely followed the "Belt and Road Initiative" layout of ZTE Corporation and other companies, established a new Sri Lankan subsidiary, and overseas revenue increased by 529% compared with the same period last year.
On the basis of the traditional excellent network maintenance, the company grasps the industry trend and lays out the innovative business.
The company spends 4.2% of its annual revenue on research and development, and the promotion projects during the year include power intensive network management system, customer presentation system for key customers, and so on, which will become an important business support for future profitability improvement.
Endogenous + epitaxial two-wheel drive development, the chairman of the command layout company's main business development is good, at the same time, the company announcement pointed out that the actual controller Mr. Chen Rongjie will focus on strategic planning and investment mergers and acquisitions, for the company's long-term development to seek layout, reflects the company's determination to develop!
Investment advice and rating
The scale of the network excellent market is constantly expanding, and the profit margin is gradually stabilizing. The company as the local leading layout operators, equipment manufacturers, radio and television, the military, overseas and other markets, while relying on software equipment and other new business to improve the company's revenue structure. Recently, the bid has been won continuously, and the main business is expected to achieve document development. At the same time, the management of the company attaches great importance to the future layout of the company and is determined to develop.
We expect the company to make a profit of 47 million and 63 million from 2017 to 2018, with a "overweight" rating corresponding to PE 95x and 71x.