Summary of the report:
Industry: there is a large space for the development of supply chain management market, the competition pattern of electronic supply chain is extremely scattered, and there are many opportunities in medical device supply chain. The rate of logistics expenses in China is still much higher than that in developed countries, which provides great room for improvement for the supply chain management industry. At present, there is no direct competition between domestic and overseas electronic information supply chain enterprises, and the subdivided industries or links served by Chinese electronic information supply chain enterprises are relatively scattered, and there is less positive competition with each other. The rapid development of the domestic medical device industry contains opportunities for the development of supply chain services, and there are no large-scale medical device supply chain enterprises in the industry, so the blue ocean market needs to be developed urgently.
Rich supply chain competitive advantage: ten years of deep ploughing of electronic information supply chain, strong professional ability, stable and high quality customer resources. Rich supply chain deep ploughing electronic information industry supply chain management services for more than 10 years, accumulated a wealth of experience and qualifications. The business of the top five regular customers in the annual rich supply chain is stable, and the top five customers from 2014 to 2016, including Shenzhen Fortune Boat and its related parties, Xingfei Technology and its related parties, and Vandro Communications, are all the top mobile device solutions or ODM/OEM manufacturing suppliers in China by smartphone shipments.
The future of the rich supply chain: the electronic information supply chain deepens the business of old customers and constantly acquires new customers; the new business of medical devices expands rapidly. The annual rich supply chain has gradually deepened its business with old customers, and the contribution income of its largest customer, Wealth Boat and its related parties, has increased year by year, and the share of revenue has increased significantly in 2016, reaching 25%. In 2016, the rich supply chain added TCL, Xiamen Meitu and other well-known customers in the electronic information industry. By the end of 2016, the field of medical devices in Nianfu supply chain has accumulated well-known upstream suppliers such as Siemens and Toshiba and nearly 30 well-known customers such as Union Hospital and Armed Police General Hospital.
In 2017, the electronic information supply chain business forecast reply accumulated 33.9 billion yuan of business volume, and medical devices have signed contracts of 300 million yuan, improving the certainty of rapid growth of performance.
Investment suggestion: the company realizes the transformation of its main business through the acquisition of the annual rich supply chain. Based on the expected endogenous growth of the annual rich supply chain, we estimate that the EPS of the company from 2017 to 2019 is 0.19,0.49 and 0.61 yuan respectively, and the corresponding PE is 52X/21X/17X. For the first time, we have deep coverage, giving a "buy" investment rating.
Risk hint: the business of old customers is sluggish, and the expansion of new customers is not as expected.