Events:

On the evening of March 19, 2018, the company issued a forecast of its results for the first quarter of 2018. It is estimated that the net profit of 2018Q1 belonging to shareholders of listed companies is about 24.28 million yuan to 25.71 million yuan, an increase of about 406.33% to 436.15% over the same period last year. Among them, it is estimated that the impact of non-recurrent profit and loss on net profit is about 1.5516 million yuan.

2018Q1 performance forecast growth of 406.33% to 436.15%, home net profit growth faster than expected

The net profit of the company's 2018Q1 belonging to the shareholders of the listed company is about 24.28 million yuan to 25.71 million yuan, an increase of about 406.33% to 436.15% over the same period last year. Compared with our forecast for the full year 2018, the growth rate of the first quarter of 2018 was faster than expected.

The holding subsidiary showed the data to introduce strategic investors, and the net profit increased by about 8 million yuan.

The company's holding subsidiary brightened the data and introduced the strategic investor Tianjin Qirui Tiancheng Equity Investment Center (limited partnership) to raise 30 million yuan. After the completion of this transaction, according to the provisions of the "Enterprise Accounting Standards", the company's consolidated financial statements will reflect a larger investment income, and the initial estimate of the impact amount will increase the net profit of shareholders of listed companies by about 8 million yuan.

The breakthrough from AFC hardware to system and software is expected to bring performance flexibility.

In business development, the company not only pays attention to the division of labor and cooperation with system integrators, but also maintains a good cooperative relationship with rail transit investment operators in various cities, which helps to strengthen the market position of the company's products. The company is to undertake the project has entered more than 20 urban rail transit lines in many cities across the country, and overseas business has developed to India, Malaysia and so on. The breakthrough in business direction from AFC hardware to systems and software is expected to bring performance flexibility.

Investment advice:

It is estimated that the company's net profit for 2017-2019 is 0.45,2.02 and 251 million yuan respectively, and the EPS is 0.33,1.07 and 1.33 yuan respectively, maintaining the "recommended" rating.

Risk hint: innovation business is not as expected, policy risk, competition intensifies