The company's revenue in the first quarter of 2016 was 241 million yuan, an increase of 25.07% over the same period last year, and the net profit returned to its mother was 9.1844 million yuan, an increase of 21.31% over the same period last year. The company expects a net profit of 3459 to 51.88 million yuan from January to June, an increase of 0 percent over the same period last year. The company signed a new contract of 446 million yuan in the first quarter, an increase of 104% over the same period last year.
Main points of investment
The results in the first quarter are in line with expectations, and the smart city project has been developed rapidly. From January to March, the company's regional business development momentum is good: currency funds decreased by 32.07% compared with the previous month; mainly due to the rapid landing speed of business, the surge in the number of orders, and the increase in daily operating expenditure; the construction of smart city projects around the country and the national development of the "smart city model" are carried out rapidly. The refund of the project was strengthened, and the impairment loss of assets decreased by 118% compared with the same period last year.
Order growth protects performance: the company deepens its business through both endogenous and extension methods. In the first quarter, the company signed a new contract of 446 million yuan, an increase of 103.95% over the same period last year, accounting for 39.93% of revenue in 2015, providing a guarantee for the company's cash flow and profits in the future. Among them, the subsidiary Zhendan Fire Protection is the bid-winning unit of the fire alarm system project of Wuhan Tianhe Airport Phase III expansion project, with a total amount of 43.74 million yuan.
The asset transfer contract brings easy cash flow: the company transfers 29.36% of the equity of Century Tianyuan at a price of 50 million yuan. Century Tianyuan Equity Investment Company itself is not profitable, with the surge in the number of projects started at the beginning of the year and the increase in the number of company orders, the demand for cash has increased sharply. The transfer of the equity of Century Tianyuan provides the company with good liquidity.
The company is committed to creating a win-win ecological circle of smart city cooperation, completing the preliminary layout of the national market through the "smart city model", and realizing the adjustment of industrial structure. The adjustment of income structure and profit structure has also achieved initial results; the company's extension expansion strategy has helped the company to realize the integration and improvement of the industrial chain of intelligent medical subdivision industry ahead of time. In July 2015, the company acquired 75.24% of Chengdu Chengdian Medical Star Digital Health Software Co., Ltd. by issuing shares to purchase assets, marking the further extension of the company's business in the smart medical sector to the upper reaches of the industrial chain. it has successfully taken an important step in the strategic policy of "consultation leading, intelligent cornerstone, energy saving promotion and medical treatment first".
Cheng Dian Medical Star performance commitment: 2016-17 net profit of not less than 4990 yuan, 62.37 million yuan.
The non-public offering made every effort to expand the wisdom project, and it was approved: the company intends to raise 1.004 billion yuan in a non-public offering of 117 million shares at a price of 8.58 yuan. it is intended to invest in intelligent energy conservation, intelligent medical pension platform, building intelligent informatization, Zhicheng model, Zhicheng Research Institute and other projects. The construction period of the project is 2-3 years respectively. if the fund-raising is completed in 2016, it will reach production by 2019, contribute 500 million yuan in income increment and 200 million yuan in total profit.
Profit forecast and investment rating: assuming that the company's project rebate is smooth in the next three years, the original business continues to grow, and the extension business achieves performance commitments, this non-public offering is scheduled to land smoothly in the second half of the year. We estimate that the revenue from 2016 to 2018 will be 14.7,18.4 and 2.27 billion yuan respectively, the realized EPS will be 0.15,0.18 and 0.22 yuan respectively, and the corresponding PE will be 68,55 and 46x respectively. Using the valuation level of the computer industry, the valuation of the company is relatively reasonable. In view of the good business development prospects and the clear logic of the company's subsequent continuous growth, we give it a "overweight" rating.
Risk hint: at present, there are many kinds of intelligent business platforms, there is no unified platform, the competition is disorderly or there will be development bottlenecks.
