Event: on August 15, 2017, Sichuan University Zhisheng released its 2017 mid-year report. In the first half of 2017, the company realized operating income of 97.624 million yuan, down 31.48% from the same period last year, and realized net profit of 13.704 million yuan for shareholders of the parent company, up 1.23% from the same period last year. Basic earnings per share were 0.0607 yuan, up 1.17% from the same period last year.
Comments:
Affected by the reduction in the scope of consolidation, revenue decreased significantly. The company's operating income decreased significantly compared with the same period last year, mainly due to the reduction of the merger scope of the system integration company compared with the same period last year. The operating income of the system integration company was 39.8832 million yuan in the same period last year. If the impact of this part is deducted, the decline in the company's operating income in the current period will be reduced to 4.83%. The company realized a slight increase of 1.17% in net profit compared with the same period last year, and taking into account the profits of some system integration companies included in the same period last year, the company's actual profit performance this year is better than that reflected in the financial figures. On the whole, the operation of the company was relatively stable in the first half of the year.
The air traffic control business is stable, and the intelligent transportation business is outstanding. No major changes have taken place in the company's business. "Aviation and air traffic control products and services" is the company's most important business segment, with revenue up 1.10% and gross profit margin up 5.18 percentage points in the first half. Among them, the company's four A320D flight simulators have been put into training services.
The total number of new contracts signed in the company's air traffic control field reached a 10-year high in 2016, and related contracts were delivered one after another in 2017, which will contribute to the company's performance growth. In the first half of the year, the revenue of the "intelligent transportation products and services" sector achieved a rapid growth of 99.69%, accounting for 17.16% of the total revenue, and has become an important business sector. The sustained and rapid growth of intelligent transportation business will bring new impetus to the company's future performance growth.
A breakthrough has been made in the research and development of automated air traffic control system. The company's R & D investment increased by 60.46% compared with the same period last year, among which the high-end automated air traffic control system based on artificial intelligence made a breakthrough. Automatic air traffic control system SAE3.0 can realize the application of artificial intelligence technology in the field of air traffic control, so that staff can reduce the workload, concentrate on complex and special situations, and greatly reduce the probability of "mistakes in the busy". Through the collation and training of a large number of regulated call data, the company can increase the correct rate of system recognition from 70% to 95.20%. In the next step, the company will continue to promote related R & D work.
Earnings forecast and rating: we expect the company's operating income for 2017-2019 to be 3.52,4.23 and 507 million yuan respectively, and the net profit attributable to the parent company to be 5105 yuan, 5984 yuan and 70.32 million yuan respectively. Based on the latest share capital of 226 million shares, the earnings per share are 0.23,0.27,0.31 yuan respectively, and the latest share price is 99 times, 84 times and 72 times PE respectively, maintaining the "hold" rating.
Risk factors: new product market performance is not as expected; brain drain risk; R & D progress is not as expected; order delivery is not as expected.