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延华智能(002178)季报点评:调整结构稳步经营 向智能服务商蜕变

Comments on Yanhua Intelligence (002178) Quarterly report: adjusting the structure and steadily transforming into an intelligent service provider

長江證券 ·  Oct 26, 2016 00:00  · Researches

Main points of the report

Event description

The company released its three quarterly results for 2016.

Event comment

Profits declined in the third quarter, and the restructuring extended to smart services. In the first three quarters of 2016, the company achieved operating income of 710 million yuan, up 5.40% from the same period last year. Net profit belonging to shareholders of listed companies was 40 million yuan, down 23.66% from the same period last year, and basic earnings per share was 0.05 yuan per share. The decline in corporate profits is mainly affected by the delay in bidding for government procurement projects in the economic downturn, the slowdown in project progress and other factors.

The company strives to adjust its business structure and transform to intelligent service providers during the reporting period, and the current market competition is more severe, so the company forecasts 2016 net profit of 0.51-102 million, an increase of-50% 20% over the same period last year, and EPS0.07~0.14 yuan for the whole year.

The profitability declined, the expense rate decreased during the period, and the cost control was better. The company's gross sales margin in the first three quarters of 2016 was 19.70%, down 1.76 pct from a year earlier, and net profit was 5.58%, down 2.12pct from a year earlier. During the period, the expense rate was 15.45%, which decreased by 2.00pct compared with the same period last year. The decline in management expenses was the main reason for the decline in expenses during the period. The management expense rate decreased by 2.00pct to 13.36% compared with the same period last year. At the same time, the financial expenses and sales expenses increased due to business development. Due to the substantial increase in the amount of other cash paid by the company related to operating activities during the reporting period, the operating cash flow was-152 million yuan, a decrease of 7 million yuan compared with-145 million yuan in the same period last year.

The operating income of Q4 last year, Q1, Q2 and Q3 reached 4.43, 2.41, 2.68 and 200 million yuan respectively, an increase of 75.31% 25.07%, 27.59%, 25.90% respectively over the same period last year. The net profit attributed to shareholders of listed companies was 0.50, 0.09, 0.29, 1 million yuan, an increase of 188.58%, 21.31%, 8.91%, 94.23%, respectively. The company's engineering business settlement has seasonal characteristics, and the revenue and profits in the fourth quarter contribute more to the annual performance.

Deepen the endogenous transformation and build intelligent service providers: as an intelligent building system integrator, the company has changed to smart city services and operators, and gradually changed the status quo of a single business in intelligent buildings. realize the overall business expansion to other vertical areas of smart cities, such as smart medical care, smart energy saving, smart environmental protection and so on. From the current engineering revenue-based to software operation and other service income-based smart city operating enterprises, improve the gross profit margin and net profit margin of the company's business.

Through non-public offering, the company will deepen its transformation to smart energy conservation, smart medical care and smart city in the future. in the future, with the fixed increase, the company will get more capital support to accelerate the construction of smart city platform and increase the layout of the national market. Hui energy-saving business has also made a breakthrough in the BIM consulting business and the operation and maintenance of green facilities. In the future, the company's business will blossom more, around the "Zhicheng model" to improve the core competitiveness and comprehensive service capabilities, and further consolidate the position of the industry.

Improve the industry chain of smart medical care for the aged and build its core competitiveness: the company has optimized the vertical industrial chain of intelligent medical care by continuously deepening the extension merger and acquisition strategy, and after the acquisition of Chengdian Medical Star in 2015, this year, it also uses 18 million of its own funds to participate in the subscription of 13.85% equity interest in Sensi Information and strategic investment in Medi Xi Lan. in addition, the fund-raising projects to be participated include: Changchun Comprehensive Cloud Information platform for the aged, Chongzhou Intelligent Medical Project and so on. The actual R & D of the company's series of "cloud products" has laid the foundation for the company's core competitive advantage in the field of smart medicine in the future.

Investment advice: forecast company 2016-2018 EPS0.12/0.15/0.18 yuan, corresponding to 2016-2018 PE is 77-62-51 times, given an overweight rating.

Risk tips: economic downside risks, new business development is not up to expectations and other risks.

The translation is provided by third-party software.


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