2016Q3 achieved a 12% year-on-year increase in revenue and a 93% year-on-year increase in net profit. In the first three quarters of 2016, the company realized operating income of 1.647 billion yuan, an increase of 10.02% over the same period last year. Net profit belonging to shareholders of listed companies was 160 million yuan, an increase of 35% over the same period last year. Deducting non-net profit of 143 million yuan, an increase of 187.2% over the same period last year. The rapid growth in profits is mainly due to the year-on-year increase in profits of the subsidiary Shanghai Jinting Automobile Harness Co., Ltd. and the increase in overseas engineering profits of Jiangsu Yongding Taifu Engineering Co., Ltd. In the third quarter, the company realized operating income of 597 million yuan, an increase of 12% over the same period last year, and a net profit of 45.57 million yuan, an increase of 93% over the same period last year. Due to the expansion of the company's business scale, administrative expenses increased by 17% year-on-year, and sales expenses increased by 14% compared with the same period last year.

During the reporting period for the future performance of overseas projects and the acquisition of Yongding Zhiyuan layout big data, the company formally signed an EPC contract with Bangladesh State Grid Company in the amount of RMB 7.65 billion, which is currently being approved and signed by the owners after going through the verification procedures, which will take effect after the relevant formalities and agreements between the two governments have been signed. The overseas project is divided into 4.5 years of construction period, combined with previous orders of US $300 million, is expected to give the company's traditional main business solid performance support in the next few years.

Yongding Zhiyuan, acquired by the company, is a leading provider of signaling collection and analysis, business operation support, application security analysis, network security and user behavior analysis in the telecommunications field, and has an excellent customer base in Unicom and Telecom. most of the bid-winning projects are the only procurement source, with high bargaining power and high profit margin. Yongding Zhiyuan has promised that its net profit in 2016, 2017 and 2018 will not be less than 45 million yuan, 55.6 million yuan and 65.5 million yuan. Judging from the current business situation in 2016, the company's commitment is relatively conservative and has a high probability of completion.

Steady development of multi-service, it is expected that EPS will steadily improve communication transmission in 16-18 years: the company won the bid for China Mobile Limited special optical cable project, and further strengthened the development of Southeast Asian market, expanding to broadband network and fiber-to-the-home service market. Overseas projects: with the gradual deepening of the national "Belt and Road Initiative" strategy, Yongding Pacific has tracked and participated in bidding for EPC general contracting projects in overseas power markets, and actively participated in bidding for power plant operation projects, which will have a positive impact on the company's operation. Automobile wire harness: the state lists new energy vehicles as a strategic emerging industry, and Jinting wire harness has made progress in the research and development of new energy vehicle high voltage wire harness. at present, it has participated in the preliminary research and development of new energy vehicles in many main engine factories, such as SAIC, Letv, NIO Inc. and so on. Superconducting plate: r & D and production, commercial application and project application pay equal attention to development, and have made certain achievements. As the effective conditions of overseas contracts have not been reached, do not consider the table for the time being. It is estimated that the EPS for 16-18 years will be 0.23,0.27 and 0.34 yuan respectively, giving a "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.