Event

The company released its 2017 annual results KuaiBao on February 27th. During the reporting period, the company realized total operating income of 365 million yuan, an increase of 12.48% over the same period, and an operating profit of 26.89 million yuan, an increase of 145.45% over the same period. The total profit was 27.13 million yuan, an increase of 126.45% over the same period. The net profit belonging to shareholders of listed companies was 19.03 million yuan, an increase of 50.84% over the same period.

The trading SaaS platform begins to contribute to performance, and it is expected that the contribution of the report will continue to increase from the beginning of this year.

During the reporting period, the company achieved a total operating income of 365 million yuan, an increase of 12.48% over the same period, and an operating profit of 26.89 million yuan, an increase of 145.45% over the same period. The total profit was 27.13 million yuan, an increase of 126.45% over the same period. The net profit belonging to shareholders of listed companies was 19.03 million yuan, an increase of 50.84% over the same period.

Among them, the company achieved operating income of 98 million in the fourth quarter, with a net profit of-1.2 million. The loss in the fourth quarter of 16 was 3.43 million, which was mainly due to the increase in the construction and maintenance of the trading platform, that is, the increase in revenue related to the saas platform.

Due to the acceleration of 17 years of business, the contribution of saas platform to the current report is relatively limited, and it is expected that the contribution will continue to increase over the past 18 years. With the continuous growth of the number of core enterprises contracted by the company, SaaS platform services will become one of the driving forces of the company's profits in the future.

Closed-loop solutions mature, cooperative banks and lending flows accelerate

After more than 20 years of development, the company has accumulated a large number of customer and industrial data resources, and has docked with the head offices of major banks such as Bank of Communications and Pudong Development Bank, with more and more banks cooperating with Shengebao. The bottleneck of supply chain financial services growth is no longer the capital problem. At the same time, the financial flow of the company's supply chain is accelerating, with monthly loans reaching hundreds of millions of yuan. The business treasure supply chain finance industry is deeply rooted and has more card position advantages, so it has a great advantage in providing supply chain funds for many small and medium-sized enterprises. B2B supply chain financial closed loop is beginning to take shape. the future extends to the direction of logistics, logistics finance, warehousing and transportation, and the realization space is expected.

Investment suggestion

We are optimistic about the company's B2B model, cash into the acceleration period, broad market prospects. According to the company's performance KuaiBao, we adjusted the company's profit forecast for 2017. The net profit of 2018 Universe 2019 was adjusted from 0.22 million to 0.20 million, maintaining the "Buy" rating.

Risk hints: policy risk; recession in the bulk economic cycle; increased competition