Main points of investment
1. Strong growth in business income and increasing profitability
The company's operating income is growing rapidly, with an operating income of 2.0376262 billion yuan in 2016, an increase of 50.25% over the same period last year. Most of the company's operating income comes from smart city and smart conference business. Smart city generated 1.1766658 billion yuan in 2016, an increase of 52.76% over the same period last year. Intelligent conference, as a traditional business of the company, has a steady income-generating ability, generating 463.6569 million yuan in 2016, accounting for 22.75% of total revenue. Big data's business layout has achieved initial results, generating 266.2053 million yuan in revenue in 2016, an increase of more than 50 times over the same period last year. With the steady progress of the national strategies of Digital China and big data, the development trend of the company is clear and the performance space is expected.
2. Independent technology has become the industry standard, and the leading position of intelligent conference is stable.
The company is the standard setter of the on-site conference industry, relying on the independent core technology-PRSMBus (streaming Media Real-time bus), to provide a complete intelligent conference system solution for the government, military and large state-owned enterprise users, forming the overall solution of the intelligent conference system and the development mode of independent research and development, production, manufacturing, sales, operation and maintenance. It has laid a solid foundation for the company to control costs, protect profits and continue to expand the high-end intelligent conference market.
3. Digital China is just around the corner, and smart city business is strong.
Since 2012, the construction of domestic smart cities has continued to rise, and the market space is huge. The company lays out the smart city project construction, all levels of smart city top-level design and some smart city operation services. Through the smart city research institute, the company jointly discusses the specific measures of information to benefit the people, provides policy guidance and program guidance for the company's smart city business development, and promotes the accelerated development of the company's smart city business. With the acceleration of digital China, the smart city business will continue to boost the company's steady growth.
4. relying on the customer base, it is expected to build a leading company of government big data in the future.
The company has established big data's business as a long-term strategic goal and comprehensively developed the big data service system with application as the core. Since the company laid out big data's business in 2013, it has continuously increased the investment in R & D and market development of big data's business, and developed into big data's service advantage. intelligent conference, smart city and Internet education are taken as the strong support and application export of big data's business development, forming three major business development patterns: social credit big data service, public opinion service and precision marketing service. The company mainly provides big data analysis and application services to government and commercial customers, and undertakes government big data information construction projects. the company and its subordinate companies have won a number of big data credit information, big data think tank platforms, "Internet + government affairs" projects. Relying on the company's high-quality government and commercial customer base, with the landing of national institutional reform, big data's operational business development space is expected to be further opened.
5. Investment suggestions
Considering the further strengthening of the company's core technology and the advantage of customer resources, the follow-up market space and revenue performance are expected to be further healthy and sustainable development, giving a "recommended" rating. From 2017 to 2019, the company is expected to achieve a net profit of 4.12,6.15 and 707 million yuan, corresponding to the current market value of 32, 22, 19 times.
Risk hint
The development process of big data's national strategy is not as expected; the development of industry customers is not as expected.