The company recently released its semi-annual report for 2016. during the reporting period, the operating income reached 487 million yuan, an increase of 68.55 percent over the same period last year, and the net profit attributed to the parent company was 28.9129 million yuan, an increase of 23.55 percent over the same period last year.
The revenue of highway information business doubled compared with the same period last year, and the port and urban traffic information business expanded smoothly. During the reporting period, the revenue of highway information business reached 360 million yuan, an increase of 111.74% over the same period last year, mainly due to the increase in the number of projects that reached the time point of measurement and settlement in the current period; the gross profit margin was 16.83%, down 2.91% from the same period last year. The company makes great efforts to develop the highway information market in Hubei, Hunan and other central regions; at the same time, it continues to carry out research on the emerging technology of the new generation traffic control network represented by vehicle-road coordination and V2X, to build a safe, smooth and efficient intelligent transportation service ecosystem. The revenue of the port shipping information business reached 48 million yuan, down 8.34% from the same period last year, and the gross profit margin was 36.88%, a slight increase of 0.41%. By continuously improving the system function of port and shipping information products, the company continues to maintain a high market share in the port traditional business field. The revenue of urban intelligent transportation business reached 32 million yuan, an increase of 27.64% over the same period last year, and the gross profit margin was 22.18%, down 8.99% from the same period last year. Relying on the integrated intelligent transportation solutions such as urban intelligent traffic management platform, the company has successfully obtained a number of urban road traffic information construction projects and set foot in the urban intelligent transportation operation and maintenance market.
We will further develop the "Internet +" transportation business and explore a new profit model for value-added services.
The company uses "Xingyun World" APP and Wechat official account as service carriers to provide convenient, smooth and safe travel services for traffic participants, realizing a substantial increase in the number of users, and on this basis to promote value-added applications such as points exchange goods and deep tourism, and explore new profit growth points. At the same time, with water transportation as the core, the mode of "platform + data + professional service" is adopted to provide a set of services such as ship tracking, EDI data exchange, ship forwarder software and so on for port and shipping logistics participants such as port terminals, shipowners, shippers, agents and other relevant port and shipping logistics participants. The company also joins hands with shipping and river logistics and transportation service enterprises and shipping supply chain financial comprehensive factoring service enterprises to create a "Haiyitong" supply chain financial platform to help shipping enterprises improve the efficiency and service level of supply chain management.
Profit forecast: we estimate that from 2016 to 2018, the net profit of the company belonging to the parent company is 0.89,1.18,150 million yuan respectively, the EPS is 0.25,0.34,0.43 yuan respectively, and the corresponding PE is 55,41,32 times respectively. We are optimistic that the company will steadily promote the strategy of "big traffic informatization" and actively carry out "Internet +" transportation business, which is expected to form a new profit growth point. We maintain the company's "recommended" rating.
Risk tips: (1) intensified market competition; (2) new business promotion is not as expected; (3) core staff turnover.