Report Summary:
E-government performance is growing at a high rate. The company's e-government revenue in 2015 was 508 million yuan, up 53.05% from 332 million yuan in 2014. The contribution to total revenue also increased from 30.58% to 41.31%, showing a clear high growth trend and the company's strategic shift to the e-government field.
On the one hand, the rapid growth in the company's e-government performance comes from the expansion of service areas. More importantly, the company relies on good customer relationships with long-term cooperation with the government, integrates more than 20 years of e-government business and R&D experience, and has formed a good marketing channel, which has been able to grow rapidly.
The leading electronic information company in the tobacco industry is expected to continue to grow in the future. The company has been deeply involved in the tobacco industry for many years, served more than 20 provincial tobacco customers, and provided overall solutions for more than 60% of tobacco commercial enterprises.
We believe that demand in the tobacco information industry will increase year by year in the future to cope with competitive pressure from outside. As a leader in informatization in the tobacco industry, the company has a good customer base and product development capabilities, and is expected to achieve continuous growth in the tobacco informatization business in the future.
iMAI continues to be implemented in many fields. The company's iMai e-commerce platform is the first e-commerce application solution in China covering various levels such as e-commerce public service platforms, integrated service platforms, operation management platforms, and electronic trading platforms. It is also the e-commerce application software with the widest range of applications, the clearest process, the easiest operation, the friendliest interface, and the most stable system in the industry.
Company profit forecasts and investment ratings. The company is positioned as a large-scale application software development and integration service provider in industries or fields such as communications, government, and sub-sector ERP, etc., and enjoys a reputation in the fields of communications, finance, e-government, tobacco, etc. We expect the company's operating income from 2016 to 2018 to be 1,435 million yuan, 1,718 million yuan and 2,078 million yuan respectively, and net profit of 131 million yuan, 155 million yuan and 195 million yuan respectively. The company's earnings per share from 2016 to 2018 are estimated to be 0.47 yuan, 0.56 yuan and 0.70 yuan, respectively. The corresponding PE is 59 times, 50 times, and 40 times, respectively. The first coverage gives the company a “highly recommended” rating.
