The performance is in line with expectations and the main business continues to lose money. In the first half of 2016, the company achieved operating income of 129 million yuan, an increase of 38.44% over the same period last year. The net profit attributable to shareholders of listed companies was-4.215 million yuan, reducing losses by 1.16 million over the same period last year. The net profit of recurrent profit and loss was-5.149 million yuan, a decrease of 2.11 million over the same period last year. With the increase of investment in postal information construction, the company's application software development and product sales have increased, and the gross profit margin has increased but is still on the low side, resulting in a loss as a whole.
Based on the post, steadily promote all kinds of business. The intelligent package cabinet business has participated in the bidding work of the group package cabinet and has been successfully shortlisted. At present, it has entered Guangdong, Chongqing, Sichuan, Shaanxi, Hebei, Hubei, Guangxi and other provinces. The application software business focuses on promoting the supporting development of philatelic business of China Post ERP system engineering, the development of the national postage machine management system, the development of the two-dimensional code digital postage machine, the superposition of the new business of Hunan e-commerce platform and the transformation of system access. In the first half of the year, financial intelligent security application business mainly completed the implementation of Hunan postal treasury management system operation and maintenance, postal intelligent security Yiyang pilot, Sichuan postal television monitoring and other projects.
We will continue to promote technological research and development and independent innovation. The company's GIS application business mainly focuses on the application of command, dispatching and monitoring services in the logistics industry, combined with GIS Beidou application platform and precision distribution system, develops an integrated integrated logistics monitoring and management platform for industry customers, with emphasis on the implementation of Beijing Shuiwu Beidou terminal equipment rental, GPS vehicle management system supporting transformation, Dongfeng and Auman Post vehicle terminal procurement and other projects.
The great change of China Post has brought historic development opportunities for the company. According to the announcement, as the core enterprise of the software sector of China Post Group, the company has received strong support in policy, capital, industrial resources, market, major projects and other aspects. At present, the company is implementing the major customer strategy with Postal Group, Postal savings head Office and Quick Ware headquarters as the core, taking the Beijing market as the main position, enriching Beijing market power, and strengthening business research and technical exchanges. in-depth excavation of the Postal Group, Postal savings headquarters, Quick things headquarters of the project.
Investment suggestion: after the change of the company's controlling shareholders from Hunan Post to China Post assets, and after a number of senior executives of the group parachuted into the new board of directors, as the only listed company platform under China Post, with the gradual approach of the transformation and upgrading of the group, its future growth path is also gradually clear, and there is a lot of expected room for asset injection and integration. It is estimated that the 2016-2017 EPS will be 0.01,0.06 yuan, maintaining the "buy-A" rating, with a six-month target price of 35 yuan.
Risk hint: the company's business development and asset injection are not as good as expected.