[incident] the main business performed well, and the company's performance continued to grow: the company's main business performed well, the proportion of software development and nuclear technology maintenance business increased, and the income of the two businesses continued to grow. In the first three quarters, the company achieved operating income of 331 million yuan, an increase of 40.29% over the same period last year, and the net profit attributed to shareholders of listed companies was 54 million yuan, an increase of 30.68% over the same period last year.
Deep ploughing large bank customers, downstream demand is strong. Compared with small and medium-sized banks, large commercial banks have complex business, many kinds of products, large scale and strong continuity. The focus of the company's business development has always been focused on large commercial banks. At present, large commercial banks have sufficient orders and business growth is relatively fast. According to the third quarter data, 2017Q3 achieved operating income of 133 million yuan, an increase of 38.37% over the same period last year. The net profit attributed to shareholders of listed companies was 26 million yuan, an increase of 27.64% over the same period last year.
Locate financial technology companies and increase technology research and market cooperation. (1) cooperate with IBM Hong Kong in technological research and development of blockchain to drive production by demand. The company actively explores leading technologies such as blockchain and artificial intelligence, and promotes technology development and cooperation. (2) cooperate with Qian Fang to carry out cross-border payment business, and the company's technical advantages are complementary with Qian Fangjin's customer experience. (3) the board of directors has approved a 7.5% stake in Baosheng Bank.
Participate in Baosheng Village Bank and continue to expand its customer base. In September 2017, the company passed a motion to subscribe for 53500000 shares of Baosheng Village Bank at 78110000 yuan, accounting for 7.50% of the total shares of Baosheng Village Bank after the completion of this issue. We believe that the company's banking IT field for many years, the scope of business covers a number of large banks at home and abroad, the company's acquisition will help the company to expand small banking business and reduce dependence on large bank customers.
Investment advice: our company forecasts earnings per share of 1.07, 1.45 and 1.91 yuan from 2017 to 2019, respectively. Given the buy-A recommendation, the six-month target price is 50.75 yuan, equivalent to a dynamic price-to-earnings ratio of 35 times in 2018.
Risk hints: (1) the risk of relying on the banking industry and concentrated customers; (2) the risk of brain drain and rising labor costs; (3) the risk of seasonal fluctuation of business; (4) the risk of market competition; (5) the management risk caused by the rapid expansion of business scale; (6) the risk of market technology development and change.
