Main points of investment
Items:
On the evening of October 23rd, Yingtang Intelligence Control released its three-quarter report for 2017, with cumulative revenue of 5.768 billion yuan in the first three quarters of 2017, an increase of 97.46% over the same period last year. Net profit belonging to shareholders of the parent company was 124 million yuan, down 15.08% from the same period last year, or 0.12 yuan per share.
Peace viewpoint:
The strategic effectiveness is prominent, and the sales scale continues to expand: in the first three quarters of 2017, the cumulative revenue was 5.768 billion yuan, an increase of 97.46% over the same period last year; the net profit belonging to the shareholders of the parent company was 124 million yuan, down 15.08% from the same period last year, and earnings per share was 0.12 yuan. Among them, the company realized operating income of 2.481 billion yuan in the third quarter, an increase of 67.75% over the same period last year, and the net profit of returning home in a single quarter was 48 million yuan, an increase of 5.36% over the same period last year. The impact of non-recurrent profit and loss on net profit in the first three quarters is about 1.63 million yuan (about 59.53 million yuan in the same period of 16 years). After excluding the impact of non-recurrent profit and loss, the net profit belonging to shareholders of listed companies increased by 41.23% in the first three quarters of this year compared with the same period last year. In the first three quarters of this year, the sales of electronic components increased steadily, and the demand for intelligent household appliances, consumer electronics, automotive electronics and other industries continued to increase.
Comply with the general trend of the industry, build the "excellent and soft five" platform: in order to meet the batch and diversified procurement needs of Chinese enterprises, the company complies with the general trend to build the "excellent soft five" platform, taking B2B commerce as the starting point, while controlling the core technology at the same time, to create a vertical ecosystem of the electronic information industry. At present, the company's platform has accumulated nearly 5700 enterprise users, which has really realized the system connection between the electronic industry and solved most of the problems of small and medium-sized enterprises. In the first half of 2017, the company's excellent and soft Mall was officially launched, and Shenzhen Yingtang factoring Co., Ltd. was officially established recently, effectively promoting the implementation of the company's medium-and long-term strategic financial sector. At the same time, the excellent soft five platform also provides comprehensive financial services such as financing, leasing, factoring and small loans, while integrating the upstream and downstream of the industry, the flow realization and financial integrated services will become the long-term performance driving force of the company. it also protects the rapid growth of enterprises in the industry.
Memory prices continue to rise, distributors may benefit: according to IC Insights, the storage DRAM market output value will reach 72 billion US dollars this year, which is the largest product in the semiconductor industry this year, and the FLASH market will also reach 49.8 billion US dollars. At the same time, it is predicted that this year's DRAM price increase will reach 63%. NAND Flash price increase will also reach a record 33%. United Chuangtai, acquired by Yingtang Intelligent Control, is an authorized distributor with rich experience in the distribution of electronic components, and is the only manufacturer in the domestic electronic components distribution industry that owns both MTK's master chip and SK Hynix memory brand. It has the distribution right of a strong resource product line, and the cooperation with Zhaoyi Innovation further determines the position and advantages of Lianchuangtai in the industry. At the same time, the company's great grandson, Hua Shang long Technology and Shenhua Wulian (Hong Kong) Co., Ltd. signed a business cooperation agreement to jointly carry out partial cutting and sales business. In the future, the company has the distribution right of the core preemptive films in the industry, and supplying goods to AMOLED manufacturers will fully benefit from the increase in AMOLED penetration. The company's 600 million yuan of bonds approved by the CSRC will effectively supplement the company's liquidity and become a distribution leader.
Employee stock ownership builds the margin of safety and demonstrates the confidence of the company's development: the company actively implements employee stock ownership. Since 2016, the company has implemented two employee stock ownership plans, buying a total of 47.94 million shares, totaling about 439 million yuan, with an average transaction price of about 9.16 yuan per share.
On the one hand, the implementation of the employee stock ownership plan is conducive to attracting and retaining excellent management talents and business backbones, and promoting the long-term, sustained and healthy development of the company. On the other hand, the implementation of employee stock ownership is conducive to stabilize the stock price, build the stock price safety margin, and demonstrate the company's confidence in the future development.
Investment strategy: with the transfer of the electronic information industry to China, we are optimistic about the transformation of Yingtang Intelligence Control in electronic distribution and the Internet of things. To maintain the company's performance forecast, it is estimated that the company's operating income from 2017 to 2019 will be 80.54 and 11.277, respectively, and its net profit will be 2.93 million and 3.86 billion, respectively. The corresponding EPS will be 0.27, 0.36 and 0.47, respectively, and the "recommended" rating will be maintained as much as that of PE in 29-22-17.
Risk tips: intensified competition in the industry; agency authority risk.
