Revenue is under short-term pressure and profit is higher than the same period of last year.
The company's operating income in the first quarter of 2017 was 454 million yuan, down 16% from the same period last year. The net profit belonging to shareholders of listed companies was 55.38 million yuan, up 23% from the same period last year, and deducting 52.86 million yuan from non-net profit, an increase of 27% over the same period last year. The management expenses and sales expenses in the current period increased by 20% and 74% respectively compared with the same period last year, mainly due to the increase in sales revenue and corresponding sales expenses of the subsidiary Jiangsu Yongding Taifu Engineering Co., Ltd. and this year increased the merger scope of the subsidiary Beijing Yongding Zhiyuan Network Technology Co., Ltd.
Overseas projects continue to make efforts to promote the development of the main business
The company seizes the strategic opportunity, radiates to the periphery based on Bangladesh in Southeast Asia and Ethiopia in East Africa, and adheres to the "going out" strategy. In 2016, the company won the bid for the turnkey project of Shikubaha Substation of Bangladesh State Grid Company through a consortium of holding subsidiary Yongding Pacific, Harbin Electric and Fujian Electric Power; phased progress was made in the memorandum of understanding signed with Bangladesh State Grid Company on the large-scale upgrading, expansion and renovation of most of Bangladesh's power transmission and transformation systems, with a cumulative total contract value of over 10 billion yuan for overseas projects. With the gradual digestion of overseas engineering orders, the company's main business income is expected to be greatly improved.
Strengthen the main body of communication science and technology and the coordinated development of multi-services
Through the acquisition of Beijing Yongding Zhiyuan Network Technology Co., Ltd., the company extends the company's communications industry chain, extending from simple products to all-round business such as system integration and engineering planning, survey, design, construction, network optimization, operation and maintenance, gradually forming four industrial layouts based on communications technology, automobile wiring harness, overseas engineering and superconducting materials. With the continuous upgrading of the cloud computing center and big data center, the product line of the company's communication plate is expected to obtain a relatively good elastic space driven by the downstream market demand. It is estimated that the EPS in 17-19 will be 0.40,0.45,0.54 yuan respectively, and the current market capitalization corresponding to net profit PE is 24X, 21X, 18X respectively, maintaining the "buy" rating!
Risk hint
There are still some formalities for overseas engineering contracts that have not yet been completed, and the effective time is uncertain; there is uncertainty in the ceiling of Yongding Zhiyuan industry; and there is uncertainty about whether profitability can remain with the growth of scale.
