Event: the company released its quarterly report for 2017, with revenue of 1.49 billion yuan, an increase of 4.78% over the same period last year, and a net profit of 326 million yuan, up 5.72% over the same period last year.
Main points of investment:
On the basis of a high base, endogenesis maintained steady growth. In the third quarterly report of 2016, the company's revenue and return net profit increased by 96.8% and 274.4% respectively, and the net profit for the whole year 2016 was mainly concentrated in the first three quarters. Although the gross profit margin is 40.21% lower than in 2016, the gross profit margin is 40.21% lower than that in 2016, but the three expense rates have decreased by 2.34pct compared with the same period last year, basically wiping out the change in gross profit margin, resulting in a net profit margin of 21.68%, slightly higher than the 21.62% in the same period last year. In terms of cash flow indicators, the company's operating cash flow has been greatly improved since the fourth quarter of 2017, with a net value of-39.29 million yuan in the first three quarters of 2016, much better than-228 million yuan in the same period last year.
Officially carry out completely independent and controllable MCU taping work. In August, the company signed the Tripartite Cooperation Agreement with Memus and Riskaiwei to invest in domestic safety MCU projects for a period of 3 years, and the three parties shared all the technical data and intellectual property benefits of domestic safety MCU projects. MCU microcontroller is the core of all kinds of automatic control systems and the engine of the transformation from traditional manufacturing to intelligent manufacturing. The company expects the Chinese market to reach 39 billion yuan in 2018, and the total sales of the three parties will reach 1 million within 2 years of the mass production phase of the project chips. The company will work with upstream and downstream enterprises to build a domestic MCU industry chain, rely on the company's established product marketing system, and gain a large market share in intelligent conference, intelligent manufacturing, Internet of things and other fields. At present, the development and verification of the FPGA version of the domestic security MCU chip has been completed, and the taping production process is being started.
Big data will be the company's long-term development core strategy, financial + data realization will continue to land. In the future, the company will take big data business as the core, intelligent conference, smart city, online education as big data application development direction and data channels. At present, the company has formed a clear development model in the three fields of precision marketing, credit and public opinion. In September 2017, the company plans to initiate the establishment of Science and Technology Insurance Company, which is expected to become the first science and technology insurance company in North China. Big data + Finance will be realized in the next city. Previously, the company has successively invested in the establishment of financial service platforms such as Beijing Wood Electronic Trading Center, Datong Forest Commodity Trading Center, Sichuan Merchants crop Trading Center, and so on. This time, the company makes use of its own advantages of big data, Internet, credit information and information security technology, together with experts with rich experience in the insurance industry, will fully integrate the model of "Internet + Finance + Technology" and realize the combination of industry and finance. open up the upstream and downstream of the industry, and further expand the space for data realization.
Valuation and investment advice: the company's EPS is expected to be 0.32,0.42 and 0.54 yuan respectively from 2017 to 2019, and the current share price is times higher than that of 27-21-16, maintaining a "buy" rating.
Risk hint: the growth of intelligent conference business is not as sustained as expected; the progress of innovation business is slow.