Event
On March 31, Saiwei Intelligent Company released its 2017 annual report: in 2017, the company achieved operating income of 1.498 billion yuan, up 49.55 percent over the same period last year; net profit returned to its mother was 182 million yuan, up 80.44 percent over the same period last year; and basic earnings per share was 0.49 yuan, up 63.63 percent over the same period last year.
At the same time, the company issued a forecast for the first quarter of 2018: the estimated net profit is about 36.969 million to 42.0103 million yuan, an increase of 120% to 150%. The amount of non-recurrent profit and loss included in the first quarter of 2018 is 11.977 million yuan, and the amount of non-recurrent profit and loss in the same period last year is 5.9594 million yuan.
Comment
11. the performance is stable and rising, basically in line with expectations.
In 2017, the company's operating income reached 1.498 billion, including 939 million of the data center business, and the data center business performance grew rapidly, accounting for 62.63% of the total revenue. At the same time, the company acquired Kaixin Information Technology Co., Ltd. in 2017, and the gross profit margin of Happy people with higher income from information games is 83.68%, which plays a positive role in improving the company's performance this year. The net profit in the first quarter of 2018 is expected to increase by 120% to 150% over the same period last year. The substantial increase in performance over the same period last year is mainly due to the fact that the Business College of Anhui University of Technology received 8.5 million yuan in teaching subsidies from the Maanshan Municipal people's Government and the merger of Happy people Information Technology Co., Ltd.
22. CIDC orders continued to exceed expectations and joined hands with Tencent Cloud to build big data as one of the leading Internet data center suppliers in China. In 2017, with its rich experience in big data Center investment, construction and operation projects, the company undertook a number of big data Center projects. In 2017, the total amount of new data center contracts signed by the company was 2.371 billion, accounting for 64% of the total contract value, including 529 million for the first phase of Hedan Road IDC data Center project in Shanghai Waigaoqiao Free Trade Zone and 300 million for Guizhou Anshun data center construction project. In November, Sai Wei Intelligent and Tencent Cloud Computing signed a cooperation agreement, and the two sides will pool their respective advantageous resources and jointly build Tencent Game as big data Laboratory, focusing on scientific research in big data, Internet +, image analysis and processing and other related fields. jointly promote the development of big data industry. Relying on Tencent's full range of cloud service solutions for Internet technology, the company will further increase the market share of its data center business in the future. The total amount of newly signed contracts in the first quarter of 2018 is 259 million, all of which are data center projects. The first quarter results forecast a substantial increase in net profit compared with the same period last year, indicating once again that new orders signed by the data center continue to exceed expectations and will have a positive impact on performance in the next two years.
33. Smart City took the lead in landing PPPP hand in hand, and Smart City leader once again set sail for Intelligence is the leader in providing comprehensive services for investment, construction and operation of domestic smart city. It has the "top three" certificate of smart city industry, smart city comprehensive software platform development and design capabilities and other core technologies, and has strong ability to undertake large-scale and comprehensive projects. In September, the Wisdom Jishou Operation Center was officially opened, taking the lead in realizing the landing of the smart city PPP project in China. With the requirement of "National New urbanization Plan (2014-2020)" to "promote the construction of smart city" and the continuous improvement of the information foundation of domestic cities, the market scale of smart city has been further expanded. The implementation experience and technical experience of Jishou PPP project will lay a good foundation for the company to promote smart city PPP project in other cities.
44. The strategy aims at "artificial intelligence" and further realizes "wisdom +".
In the future, the company's strategy will take artificial intelligence technology as the core, independently develop artificial intelligence products, build a domestic first-class artificial intelligence research platform, and strive to become one of the best artificial intelligence brand enterprises in China. Relying on the company's 20 years of research and development in the field of artificial intelligence, as well as joint development with well-known universities and scientific research institutions at home and abroad, the company's artificial intelligence field mainly includes health service robots, UAV platforms and image processing, face recognition and intelligent video analysis. At present, face recognition and intelligent video analysis have been completed and accepted step by step, which will be deeply integrated with smart city applications in security, finance and other scenes, while tethered multi-rotor UAV is the first in China with leading technology.
At the same time, the company lays out the promotion and marketing of artificial intelligence terminal products, intends to open up the high-end market in the field of health, fully docks the broad market demand of AI applications, and realizes the performance transformation in the direction of artificial intelligence.
Profit forecast and valuation:
Orders in the data center continue to grow over time, and Smart City holds hands with PPP to speed up the landing of the project. Combined with the combined income of "happy people", the company's performance is expected to increase significantly, and the production of artificial intelligence will further open up the company's growth space. It is estimated that the company's return net profit from 2018 to 2020 is 275 million yuan, 407 million yuan and 468 million yuan respectively, and the corresponding EPS is 0.64,0.94,1.08 yuan respectively. Corresponding to the current market capitalization PE is 26.48,17.91,15.57 times, maintaining the "recommended" rating.
Risk tips: smart city operating income is not as expected, artificial intelligence business production is not as expected
