Event
On the evening of November 6, 2017, the company announced:
The company recently won the bidding activities of "Xinjiang Uygur Autonomous region Prison New Generation Informatization Construction Project (Phase I)" and "Xinjiang Yuhe Prison Informatization Construction Project". The tenderer is the Xinjiang Uygur Autonomous region Prison Administration, the total winning amount of the project is 83026900.00 yuan.
The field of political and legal informatization is one of the company's three core businesses. Xinjiang is the key coverage area of the company's political and legal informatization. The winning of the project reflects the company's business strength. If it is successfully implemented, it will have a positive impact on the performance.
The company's political and legal information business mainly provides information services such as software development, system integration and intelligent system engineering for customers in judicial prisons, public security bureaus, procuratorates, courts and other industries. The company provides prison information services to the prison administrations of Shanghai, Anhui, Jiangsu, Xinjiang and more than 60 subordinate prisons. The market coverage of Shanghai and Jiangsu is as high as 100%. Xinjiang is the forefront of "Belt and Road Initiative", the promotion of political and legal informatization will provide a stable environment for regional development, and the company's winning bid reflects its business strength in political and legal informatization. The publicity stage of winning the bid has been completed, and the company is actively promoting the work related to the signing of the contract. The winning bid amount is 83 million yuan. If the company can sign a formal project contract and implement it smoothly, it will have a positive impact on the company's business performance.
Food safety traceability and archival information business strength is outstanding, actively promote cloud computing and big data, promote steady growth of performance
As of 2017H1, the company has won 24 bids in five batches of 58 pilot cities with a market share of more than 40%, ranking first in the country. The company has undertaken a total of 35 archives bureaus (galleries) at or above the vice provincial level, with a market coverage rate of 68.63%. The 13th five-year Plan calls for accelerating the construction of food safety traceability and archival informatization, and the company's business is expected to benefit from policies to promote sustained and steady development.
The company actively promotes cloud computing SaaS, big data, open up enterprise users, and promote steady growth in performance. The company has developed three major cloud platforms: food Security traceability Cloud, Archives hosting Cloud and Special Group Service Cloud. According to the company report, the company traces back to the deep cooperation with many traditional fresh retail and new retail core enterprises, such as Box Horse fresh, Kitchen Age, Food Bank fresh, CP member Store, Da run Fat, Shanghai vegetable Group, Meitian Group and so on, with a code volume of 10 million.
Investment suggestion
The company focuses on "one arrow and two wings"-- food safety traceability, archival information business, and political and legal informatization, and actively promotes cloud computing big data business such as "traceability cloud". It is estimated that the company's EPS from 2017 to 2019 will be 0.56,0.85 and 1.23 yuan respectively. Give a "recommended" rating.
Risk tips: business progress and performance fall short of expectations, policy risks, and increased competition