Event
The company releases its 2016 annual report
According to the company's annual report for 2016, the operating income for the whole year of 2016 was 171 million yuan, an increase of 23.26 percent over the same period last year; the net profit returned to the shareholders of the company was-69.89 million yuan, down 5.22 percent from the same period last year; and the net profit after deducting non-profit was-75.22 million yuan, down 4.33 percent from the same period last year.
The company releases its first quarterly report in 2017
The company announced that in the first quarter of 2017, the company achieved operating income of 120 million yuan, an increase of 583.55% over the same period last year, a net profit of 16.66 million yuan for shareholders, an increase of 180.31% over the same period last year, and a net profit of 16.49 million yuan after deduction, an increase of 178.43% over the same period last year.
Increase the holdings of the actual controller
On April 24, the company received a notice that Ma Yan planned to increase his shares in the company through self-raised funds within 12 months from April 28.
Brief comment
Business expansion is beginning to bear fruit, and new business is expected to bring about a magnificent turnaround.
The company announced its annual report that its operating income for the whole year of 2016 was 171 million yuan, an increase of 23.26 percent over the same period last year, and the net profit returned to shareholders was-69.89 million yuan, down 5.22 percent from the same period last year, slightly lower than the previous annual performance of KuaiBao. Coal supply-side reform has achieved initial results in 2016. With the decline of coal production, the contradiction between supply and demand in the market has been alleviated, and the operating situation of coal enterprises has been improved to a certain extent. However, the contradiction of insufficient demand for coal and overcapacity still exists, and the problems such as shortage of funds and difficulties in operation of coal mining enterprises are still prominent. Affected by this, the company's operating situation in the traditional business field of mine safety monitoring, monitoring and early warning is still not optimistic, and the profit level is affected.
During the reporting period, in the face of the adverse impact of the decline in the mine safety production monitoring industry of the company's traditional business, the company actively expanded the market in new business areas, optimized the organizational structure, and achieved a certain degree of growth by expanding the market in new business areas. to a certain extent, the adverse impact of the decline in the performance of the main business has been alleviated, while the company has reduced its expenses during the period by optimizing the industrial structure.
In addition, the company has obtained orders in the field of new business smart cities, which marks the initial results in the transformation and upgrading of the company.
Substantial growth in the first quarter of 2017
During the reporting period, the company's performance increased significantly. In the first quarter, the company realized operating income of 120 million yuan, an increase of 583.55% over the same period last year. The net profit of shareholders was 16.66 million yuan, an increase of 180.31% over the same period last year. The net profit after deduction was 16.49 million yuan, an increase of 178.43% over the same period last year.
In December 16, the company signed "Heilongjiang Hengyang Group Wisdom Animal Husbandry Project Construction and Service contract" with Nehe Wisdom Animal Husbandry Development Co., Ltd., marking the phased progress of the company's new business development. During the reporting period, the project achieved revenue of 80.5 million yuan and gross profit of 33.01 million yuan, which had a significant impact on the performance of the first quarter.
Increase the confidence of the actual controller
On April 24, the company received a notice that Ma Yan planned to increase his shares in the company through self-raised funds within 12 months from April 28. The amount of increase shall not be less than 1.5% of the total share capital of the company, and not more than 1.86% of the total share capital of the company. Mr. Ma Yan holds 46.64 million shares of the company, accounting for 28.13% of the company's total share capital, and is the actual controller of the company. The increase of Mr. Ma Yan's holdings reflects his confidence in the company's future development prospects and is optimistic about the long-term investment value of the domestic capital market.
"Internet of things +" as the main line for new business layout
In the face of insufficient demand for coal, prominent contradictions of overcapacity, shortage of funds and operational difficulties in coal enterprises, the company's traditional mine safety production monitoring business is still under pressure. In order to eliminate the adverse effects, the company takes the "Internet of things + security intelligent service overall solution provider" as the main line of development. Actively explore and layout sewage treatment, municipal facilities, urban underground pipelines (pipelines), safety supervision and emergency disposal, industrial park hazards, security cloud services and other intelligent platforms, as well as big data construction and operation and other business areas. Marked by the construction and service contract signed with Nehe Wisdom Animal Husbandry Development Co., Ltd., the company has bright prospects for market development in new business areas.
180 million yuan PPP project enters large-scale installation period
The company and intelligent villages jointly formed a consortium to invest 180 million yuan to participate in the rural sewage project of Guantao County to treat rural sewage from 277 administrative villages of four towns and four townships in Guantao County. the construction period is 36 months and the operation period is 30 years. The price per ton of sewage stipulated in the contract is as follows: if the amount of sewage treated per day is less than 14600 tons / day, it shall be calculated according to 3.50 yuan / ton; if it is higher than 14600 tons / day, it shall be calculated according to 3.2yuan / ton. The registered capital of the project company is 10 million yuan, of which Party A (Guantao County Housing and Construction Bureau) contributed 10 million yuan, accounting for 80% of the shares. The trial operation of the company's pottery is stable and good, and now it has basically entered a large-scale installer, with a significant contribution to the performance increment.
Xiongan New area increased the demand for sewage treatment in Baoding, and the rapid landing of treatment orders signed a "Strategic Cooperation Framework Agreement" with Baoding Guoxing City Construction and Development Investment Co., Ltd. to carry out strategic cooperation on rural sewage treatment and operation management in Baoding. The cooperation involves project financing, construction and operation management in the fields of rural sewage treatment and urban black and smelly water treatment, and in-depth cooperation in beautiful villages and small towns with characteristics. At present, the problem of environmental pollution in the area where Xiongan New area is located is serious, and there is a big gap between the positioning of the "Green Wisdom New City" and the central planning, which will give rise to the long-term and sustainable demand for environmental control in Baoding. Let's assume that per capita 40L/ days, when our sewage treatment rate is 15%, it is estimated that the total investment in treatment exceeds 5 billion yuan, and the demand for treatment is enormous.
Investment evaluation and suggestion
With the help of its own technological advantages, the company has actively transformed the Internet of things business, a number of strategic cooperation agreements have been steadily advanced, projects have been landed in the field of smart cities, rural sewage projects have been promoted rapidly, and the replication of similar projects is worth looking forward to. The company is expected to achieve net profit of 1.05yuan and 181 million yuan in 2017 and 2018 respectively, equivalent to EPS 0.63,1.09 yuan, maintaining the buy rating.
