Main points of investment
1. Communication network service provider with stable growth rate of revenue and net profit
The company's main business includes network construction, network maintenance and network optimization. Network maintenance and network construction account for the vast majority of the company's main revenue, more than 90% of the operating income. In terms of business change trend, the proportion of income from network construction is increasing year by year, while the proportion of income from network maintenance and network optimization is decreasing year by year, but the decreasing proportion is not obvious. The company's operating income has achieved sustained and steady growth, with a growth rate of about 25%. In terms of net profit, the net profit in the past three years was 1716.47 yuan, 2853.67 yuan and 42.6408 million yuan respectively, with an average growth rate of more than 50%. The growth of operating income and net profit of the company in the past three years reflects that the business is more mature and stable, and the trend of sustained growth is expected to continue.
two。 The company is highly competitive and is expected to maintain revenue growth in line with the industry.
The market size of communications technology services has maintained a growth rate of about 20 per cent in recent years and is expected to reach 266.85 billion yuan in 2017. Although the market capacity is increasing, the number of enterprises engaged in communication services is also increasing day by day, and the market competition is fierce. The company maintains its competitive advantage by virtue of its integrated service ability.
3. Investment advice:
The company has been engaged in the communication network service industry for many years, and it is expected that the revenue growth of the company is expected to maintain the growth rate of the industry or above by virtue of its competitiveness. The net profit from 2016 to 2018 is expected to be 55 million yuan, 73 million yuan and 91 million yuan, corresponding to 115,87 and 70 times of PE, respectively.
4. Risk Tips:
The industry competition intensifies and the risk of a single major customer.