Event

The company announced its 2017 results KuaiBao, which is expected to have an operating income of 921 million yuan, an increase of 46.7% over the same period last year, with a net profit of 92.19 million yuan, an increase of 33.8%, and a non-net profit of 85.455 million yuan, an increase of 26.9% over the same period last year. The performance was higher than expected.

The company released a forecast of its results for the first quarter of 2018. It is expected that the attributable net profit in the first quarter of 2018 is 2213-26.63 million yuan, an increase of 50-80% over the same period last year; the attributable non-net profit is 1983-24.33 million yuan, an increase of 50-80% over the same period last year.

Analysis

The outstanding performance of the fourth quarter orders are gradually reflected in the performance side: according to the performance KuaiBao, the company achieved an income of 304 million yuan and a net profit of 30.07 million yuan in the fourth quarter, exceeding expectations. We believe that the company's high growth is the combined effect of the landing of new orders from the end of 2016 to 2017 and the performance of the extension bid. Considering that the contract period of the order signed between the company and the customer is long, and the order will begin to contribute to the performance one after another during the year, the growth of the company is sustained.

Additional issuance + SPD business + subsidiary order is expected to continue high growth in 2018: we believe that the company's development in 2018 is expected to receive multiple assistance-if the company's non-public offering can be successfully completed, it will provide financial support for business expansion and new business type's landing; if SPD business can continue to obtain orders and landing, it will also make a great contribution to revenue. After preliminary preparation and development, subsidiaries with local layout in 2017 are also expected to make order breakthroughs in 18 years. Considering the above factors, the company's performance is expected to continue to maintain rapid growth in the future.

Investment suggestion

If the layout of the company can be successfully landed, regardless of the impact of additional issuance on financial expenses and working capital for the time being, we expect the company's 2017-2019 EPS to be 1.29,1.79,2.39 yuan respectively, an increase of 34%, 38% and 34% respectively over the same period last year.

Maintain the "overweight" rating.

Risk hint

The signing of the hospital contract is not up to expectations; the insufficient talent reserve affects the expansion; the lifting of the ban on the sale of restricted shares in October 2017 has a pressure on the stock price; the policy pressure of price reduction has a short-term impact on performance.