Main points of investment:
The industry policy is good continuously, and the development prospect is promising. In recent years, our government attaches great importance to the development of the information industry, and always regards the information industry as one of the key industries to promote and give priority to the development of our country. Fixed asset investment in the telecommunications industry in 2015 was 453.91 billion yuan, an increase of 13.7 percent over the same period last year, the highest level of investment since 2009. At the same time, the market size of China's communications technology service industry has maintained a sustained growth trend, growing from 101.18 billion yuan in 2012 to 191.43 billion yuan in 2015, with an annual compound growth rate of 23.68 percent, and is expected to reach 266.85 billion yuan in 2017.
The company lays out multi-regional integration services and creates integrated communication technology service providers. The company is a national integrated communication technology service provider integrating communication network construction, communication network maintenance and communication network optimization services. it is committed to providing operators with integrated services covering all aspects of communication technology services and involving all levels of communication network structure, including wireless network, transmission network and core network. The company's operating income increased by 26.57% in 2014 compared with the same period last year. The company's high-quality service capacity and good management level have been continuously trusted and recognized by customers, and the changing trend of operating performance is basically in line with the industry.
Good growth, good profit, Nuggets high-quality white horse stock. The company has a strong ability of independent technological innovation, has established a business model of sustainable growth, has an effective management system and mature management team, and has formulated a clear development strategy and practical development plan. From 2013 to 2015, the ROE (diluted) after deducting non-companies was 9.21%, 14.13% and 17.44% respectively, steadily rising and higher than that of comparable companies in the industry.
Fund-raising projects optimize the company's product structure and enhance the overall competitiveness. The funds raised by the company are used to invest in R & D and training bases and other projects. Among them, the regional service network support construction project will comprehensively expand the network technical service business and expand to the national market at the same time; the R & D and training base project will further enhance the company's technological R & D capability and enhance the company's technological innovation advantage; dispatching and command information platform construction project will help the company to realize remote monitoring and dispatching command of network maintenance service areas throughout the country. The fund-raising project will further optimize the company's product structure, improve the company's industrial layout, expand its technological innovation advantages, and promote the company's comprehensive competitiveness.
Cover for the first time, giving a "buy" rating. We estimate that the operating income of the company from 2016 to 2018 will be 891 million yuan (+ 28.43%), 1.116 billion yuan (+ 25.18%) and 1.393 billion yuan (+ 24.83%) respectively, the net profit attributable to the shareholders of the company will be 55 million yuan, 70.25 million yuan and 87.51 million yuan respectively, and the EPS will be 0.69T 0.88 PE 1.09 yuan respectively. With reference to the valuation of comparable companies in the industry, we give the company a dynamic PE of 55 times in 2016. The corresponding value range is 34.50-37.95 yuan. Cover for the first time, giving a "buy" rating.
Main risk factors. Competition in the industry intensified, and the progress of the fund-raising project was lower than expected.