Event: KuaiBao announced operating income of 2.1039356 billion yuan in 2016, up 55.14% over the same period last year; operating profit was 445.6213 million yuan, up 121.62% over the same period last year; and net profit belonging to shareholders of listed companies was 423.1815 million yuan, up 134.28% over the same period last year.
Increase investment in R & D and marketing, and confirm conservative profits. During the reporting period, the company's profit was 420 million, up 134.3% from a year earlier, lower than our previous forecast, but the early decline in share prices has reflected the pessimistic expectations of the market. The company increased its R & D investment in 2016, and the number of personnel in fields such as big data and software expanded to more than 100. we estimate that the accounting standards of the 2016 annual report are relatively conservative and all expenses are used. After the company integrates the target of the acquisition, the customer synergy is obvious, we estimate that the actual operation is better than the book profit, and the profit will be released quickly after the gambling period. Excluding the growth of mergers and acquisitions, we expect the original business to grow at an endogenous rate of nearly 30%, in line with previous judgment.
Extension is expected to continue to promote, promote high performance growth. The company's extension always revolves around government customers to meet the different needs of the same customer to expand the territory, not only enhance customer stickiness but also greatly improve sales and R & D efficiency. The results of Xiamen Jingtu Information, Shanghai Jiedong Control, Chengdu O'Feiling and Shenzhen connected World acquired by the company in 2015 are included in the consolidated scope, and the total performance commitment of the above-mentioned companies in 2016 is 186 million yuan. it is 1.02 times the company's net profit in 2015, helping the company to create a Felix a year, and we expect that the extension will still be greatly promoted in 2017.
Big data + credit service business model began to land through finance. The Beijing Mujiao Center and Datong Mujiao Center, in which the company participated in the early stage, were officially established, using the "Feilixin bulk Trading + supply chain Financial Services platform" to provide bulk trading, electronic mall, supply chain financial services. Big data credit risk control services, logistics monitoring services.
With the smooth landing of this case, big data's business is expected to expand into other commodity trading areas and even financial exchanges. We estimate that it is expected to expand more than 10 to 20 exchanges in the future, including a variety of commodity sectors. There is huge room for imaginable realization in the future.
Valuation and investment advice: the company's EPS is expected to be 0.42 yuan and 0.63 yuan respectively from 2017 to 2018, corresponding to 17 times the corresponding PE, maintaining the "buy" investment rating.
Risk hint: the progress of new business is not as expected and the integration of mergers and acquisitions is not as expected.