Main points of investment
Items:
On March 17, 2017, the company disclosed its 2016 annual report: in 2016, the company achieved an operating income of 359 million yuan, an increase of 32.50% over the same period last year, and a net profit of 107 million yuan for shareholders belonging to the parent company, an increase of 42.08% compared with the same period last year.
On April 11, 2017, the company disclosed its quarterly report for 2017: the company achieved operating income of 58.661 million yuan in the first quarter, an increase of-2.57% over the same period last year, and a net profit of 10.545 million yuan, an increase of 4.81% over the same period last year.
At the same time, we saw the company announce the draft equity incentive plan in January 2017.
Peace viewpoint:
The remarkable growth rate for the whole year is mainly due to the consolidation of Shixuan Technology:
In 2016, the company realized operating income of 360 million yuan, an increase of 32.50% over the same period last year, and the net profit of shareholders belonging to the parent company was 107 million yuan, an increase of 42.08% over the same period last year.
The increase in operating results over the same period last year was mainly due to the consolidation of the annual operating results of Shixuan Technology.
The quarterly report has no reference, and the performance release of power distribution business and medical business is mainly in the fourth quarter:
On April 12, 2017, the company disclosed its first-quarter 2017 quarterly report that its operating income in the first quarter was 58.661 million yuan, an increase of-2.57% over the same period last year, and its net profit was 10.545 million yuan, an increase of 4.81% over the same period last year. As the company's power distribution business, medical business performance release are concentrated in the fourth quarter, so the quarterly results do not have much reference.
In the smart grid sector, the company actively extends the depth and breadth:
In the field of smart grid, the company actively promotes the development of intelligent distribution network business in Chengdu Zhida and Guangzhou Suihua, and develops a new generation of system-integrated intelligent distribution network products to provide customers with complete "one-stop" services. There is a new breakthrough in the sales of distribution network products. In addition, the company launched two new products: electric power inspection robot and secondary equipment operation and maintenance system, which extended the depth and breadth of the company's business.
In the medical and health sector, Shixuan Technology is running well and actively promotes the "1x 6" business model:
Shixuan Technology is the main performance contribution point of Zhongyuan shares, with a net profit of 62.387 million yuan in 2016, exceeding the performance commitment.
The company is based on the data. Product。 Service strategy, with medical information business as platform resources, coordinate the development of in vitro diagnostic reagents and medical laboratory equipment, actively promote the "1x 6" business model, establish, invest in and acquire clinical laboratory centers, medical imaging remote diagnosis centers, drugs and consumables B2B supply chain integration projects, genetic testing and disease screening centers, medical and nursing integrated service platforms for the elderly and other medical service institutions Develop intelligent medical services and form a medical and health industry chain that can interact and have synergistic effect. In 2016, Shixuan Technology was selected as the "key software enterprise in the planning and layout of Jiangsu Province in 2016-2017", which will receive more support from the relevant industry authorities in Jiangsu Province in the future.
Introduce a draft of equity incentive to bind interests:
In January 2017, the company announced the draft equity incentive, with 8.12 million restricted shares to be granted, accounting for 1.69 per cent of the total share capital.
The total number of incentive targets awarded by this incentive plan for the first time is 184, including senior managers, middle managers, core technical (business) personnel, and relevant employees who are employed in the company and its subsidiaries at the time of the announcement of this incentive plan. This is the first equity incentive since the company went public, which is helpful to improve the enthusiasm and stability of the relevant personnel.
Investment advice:
The company has formed a business structure of smart grid and simultaneous development of health care and health. we predict that the EPS in 2017, 2018 and 2019 will be 0.29,0.36,0.47 yuan respectively, and the corresponding PE will be 37.5,29.6,22.9 times respectively. At the same time, the company does not rule out further mergers and acquisitions in the field of health care in the future to maintain the "recommended" rating.
Risk hint
The risk of securities market fluctuation, the risk of power grid policy change, the risk of new industry integration, the policy risk of medical and health industry, and the risk that Shixuan science and technology performance commitment is not up to expectation.