The performance continued to grow steadily, basically in line with expectations. In the first three quarters of 2017, the company achieved revenue of 283 million yuan, an increase of 15.40 percent over the same period last year, and a net profit of 32.2853 million yuan, an increase of 11.28 percent over the same period last year. In the first three quarters, the company's main business network maintenance and network optimization business was stable, and the company continued to provide high-quality network operation and maintenance and network optimization services for the three major operators, Huawei and ZTE Corporation. The market share in Fujian, Guizhou and other places increased steadily, and the main business income maintained a steady growth trend.
Acquire Guangzhou Oukang Communication to enhance its competitiveness. The company announced the acquisition of 100% equity in Guangzhou Oukang Communication Technology Co., Ltd., with a tentative purchase price of 210 million yuan. Performance commitment: the net profit after tax in 17 years is not less than 28 million yuan, the total net profit in 17 and 18 years is not less than 60.2 million yuan, and the total net profit in three years from 17 to 19 is not less than 97.23 million yuan. This acquisition will increase the company's performance.
The ad hoc network has developed rapidly and has successively won the bid. In recent years, the company has made great efforts to develop self-organizing network projects, and has won the bid for China Mobile Limited emergency communication procurement project and Fujian Armed Police Corps conference communication guarantee project, with a total winning amount of 13.46 million yuan. The self-organized network products that reflect the company's independent research and development have been further recognized by the market, which is of great significance for the company's expansion in this business field. In the future, the company will continue to expand customers in telecom operators' emergency communications, conference communications and other ad hoc network applications, and continue to increase the revenue share of ad hoc networks in the company's business.
Sign a strategic cooperation agreement with an Siyuan to explore new business directions in the field of information security. The company and the company signed the Strategic Cooperation Framework Agreement on September 23, 2017, taking information security as the foothold, relying on the advantages of an Siyuan's technology accumulation in information security, and with the help of China Fortis's broad communications industry users and resources. actively explore the business development in the field of information security. The signing of this strategic cooperation framework agreement is in line with the company's strategic planning of "committed to becoming an outstanding domestic information service provider", which is conducive to the company's active exploration and development of new main business and in line with the company's long-term development strategy.
Profit forecast and investment advice: the company's 2017-2019 net profit is expected to be 45 million yuan, 78 million yuan and 94 million yuan respectively, EPS is 0.42,0.74 yuan and 0.89 yuan respectively, dynamic PE is 105,60 and 50 times, covering for the first time and giving "overweight" rating.
Risk hint: the competition in the industry intensifies; the implementation of fund-raising projects is not as expected.