Main viewpoints
1. The main business grew steadily and the performance was in line with expectations.
The company achieved an operating income of 620 million yuan in the first quarter, an increase of 272.64% over the same period last year, a net profit of 5.89 million, an increase of 41.72% over the same period last year, and a net profit of 4.15 million yuan, an increase of 58.02% over the same period last year. The increase in operating income mainly comes from the consolidated performance of Jin Ruixian, the growth rate of income is higher than that of profit, and the gross profit margin and net profit margin have declined as a result of the consolidated statement.
two。 Non-IC card leader, the acquisition of Jin Ruixian layout OTT.
Dahua Intelligence has occupied the leading position of non-connecting IC cards for many years and is the largest supplier in this field in China. In recent years, the company has actively deepened its transformation, gradually from product manufacturing to system integration and intermediate software, and then to the overall solution provider of the Internet of things. It has formed a business system with hardware manufacturing, system integration, intermediate software, overall solution and Internet of things operation as the core.
The company cooperated with Guoguang Oriental, Southern New Media and Huawen Media for 15 years, and acquired Jin Ruixian for 720 million yuan to formally enter the smart TV and try to lay out the OTT industry.
3. Further holding card friend payment, overseas mergers and acquisitions have been carried out steadily, and the big financial strategy has emerged.
The company's Zhongda small loan and Chengda small loan have accumulated many years of experience in the small loan industry. After obtaining the payment license, holding Kaiyou pay (74% equity) can carry out integrated payment, POS loan, factoring and other services around the payment business, so as to further expand the liquidity of the financial business. Kaiyou pay, as a former UnionPay holding subsidiary, is one of the few companies with a national bank card receipt license, and the layout of the large financial industry will bring continuous liquidity to the company's strategy.
The company is negotiating an equity deal with an offshore company in the financial industry. On March 28, 2016, US $4000 was remitted to the supervision account of the company's overseas law firm to acquire the overseas company. At the same time, Dahua Intelligence plans to invest an additional 4.35 billion in integrated payment, business factoring and intelligent living platform projects. Internet of things, OTT as the platform, finance as the realization, the company's platform-level financial strategy appears.
4. Investment advice:
To sum up, we believe that Dahua Intelligence has basically completed the layout of the three core business systems of the Internet of things + OTT+ finance, and the industrial structure will expand from manufacturing + system integrators to upstream and downstream to intelligent living platform enterprises. We predict that Dahua Intelligent's profit (and card payment) for 16-18 years will be 507 million, 791 million, 1.014 billion. The EPS of the company from 2015 to 2017 is 0.46, 0.72 and 0.93 respectively, and the corresponding PE is 43 and 28, respectively. We believe that the actual controller of the company has a large pattern, the strategic layout is clear, the Internet of things and the OTT platform are ready, and Big Finance provides a liquidity channel to maintain the recommended rating.
Risk Tips:
(1) the stock price risk leads to the fixed increase implementation risk.
(2) the risk of bank card receipt policy.
(3) the future business transformation is not as expected.
