The company released its 2015 annual report: during the period, the company achieved operating income of 848 million yuan, an increase of 63.94% over the same period last year; net profit attributed to shareholders of listed companies was 23.1397 million yuan, up 21.69% over the same period last year; net profit after deducting non-recurring profits and losses was 18.8524 million yuan, an increase of 1544.23% over the same period last year; earnings per share were 0.06 yuan.
Both gross profit margin and expense rate fell compared with the same period last year. The gross profit margin fell 3.78 percentage points from the same period last year, and the expense rate during the period fell 9.2 percentage points from the same period last year. Under the influence of the successive supply implementation of the previous bid-winning major projects and the expansion of supply channels and inventory control in the downstream market, the operating cost during the period was higher than that in the previous period; at the same time, the company expanded the downstream supply channels and expanded the proportion of channel supply revenue, as well as the completion of the previous fund-raising project, the completion of some cooperation projects, and the reduction of R & D projects and cost investment this year, so that the sales expense rate and management expense rate were lower than the same period last year.
The income mainly comes from the special network communication of electric power and transportation industry. From the perspective of the company's products by industry during the period, the revenue of private network communications in the electric power industry was 408 million yuan, an increase of 143.94% over the same period last year, accounting for 48.06% of the revenue. The revenue of private network communications in transportation and other industries was 441 million yuan, an increase of 27.74% over the same period last year, accounting for 51.94%. The company is implementing and has signed major sales contracts that have not yet been implemented, totaling 383 million yuan, mainly concentrated in the transportation industry.
Power grid construction and transportation development will continue to promote the demand for private network information and communications. In 2016, the State Grid will promote the construction of a global energy Internet, combined with the implementation of the Belt and Road Initiative networking project, and plans to complete the transformation of 13000 natural villages without power supply and 27000 natural villages; the development of intelligent transportation, urban rail transit and highways will continue to promote the company's dedicated network information and communication needs. In 2016, the company will continue to focus on the areas of power and transportation, and continue to expand new market space while consolidating the original market.
Profit forecast and investment rating: we expect the company to achieve an EPS of 0.09,0.16,0.20 yuan from 2016 to 2018, corresponding to a neutral investment rating of 130,76,59 times the closing price of March 17.
Risk hint: the scale of downstream investment is declining; the competition in the industry is intensified.