The performance is in line with expectations. The company achieved operating income of 211 million in the first half of the year, an increase of 16% over the same period last year, a net profit of-10.5411 million, a loss reduction of 9.97% over the same period last year, and an investment of 32.8302 million in R & D, an increase of 16.86% over the same period last year. The company continues to promote the strategy of "one arrow and two wings" and deepen "food safety".
At the same time of the layout of the whole industry chain, we will steadily promote the development of the field of "archives and justice".
The layout of food traces the whole process to welcome the new retail Dongfeng. The company card position is the traceability platform of meat and vegetable circulation of the Ministry of Commerce, Taobao + easy batch + traceability cloud, to create an efficient food safety supply chain ecosystem:
Taocai cat starts with the vegetable market to achieve the "last kilometer" accurate traceability of agricultural products; easy to batch fresh to promote online electronic settlement of wholesale links, opening up the traceability information chain from breeding to retail; traceability cloud combined with the traceability system of various parts of the company to open up the production base harvesting, retail store storage and end-user data chain. According to the company announcement, the company traces SaaS to many traditional fresh retail and new retail core players such as fresh Horse, Kitchen, Food and Bank fresh, CP member Store, RT-Mart, Shanghai vegetable Group, Meitian vegetable Farm, Carrefour and many other traditional fresh retail and new retail core players, with a code volume of 10 million; under the new retail Dongfeng, the company has outstanding card position advantages, a comprehensive layout of food traceability process, and a sharp weapon for tracing back to the cloud.
Archives and judicature are advancing steadily and helping to take off with one stone and two wings. In the field of archival informatization, the company dominates the traditional archival business; by the end of the reporting period, the market share in the central and provincial archives bureaus reached 68.63%. And actively change to business consulting, data services, archives trusteeship and archival resources utilization and other lifecycle management, the development of hosting cloud, the establishment of archives cloud platform. In the field of political and legal informatization, the company focuses on judicial prison, Jiangsu Prison Administration "518 platform Project"
It has become a national benchmark and has been deployed and promoted throughout the country. The market coverage in Shanghai and Jiangsu is as high as 100%.
Archives, judicial progress steadily, food traceability to fill the two wings, accumulated strength waiting to take off.
Investment advice: the company positioning one arrow and two wings, focusing on the layout of food data traceability, the new retail Dongfeng will be promising; archives, judicial steady progress, the leading position continues to consolidate, and then fill the two wings to help take off. We estimate that the company's EPS from 2017 to 2018 will be 0.79 yuan, respectively, maintaining the "buy-A" investment rating, with a six-month target price of 54 yuan.
Risk Tip: the risk of tracing the progress of the cloud business; the popularity of new retail is lower than expected.