The performance is in line with expectations. In 2017, the company achieved an operating income of 3.996 billion yuan, an increase of 51.69% over the same period, and a net profit of 414 million yuan, an increase of 77.72% over the same period. Of this total, the operating income of the intelligent manufacturing sector in 2017 was 2.91 billion yuan, an increase of 28.38 percent over the same period last year, and the net profit was 172 million yuan, an increase of 65.35 percent over the same period. The financial and technology sector achieved operating income of 1.087 billion yuan, an increase of 37.10 percent over 2016, and a net profit of 242 million yuan, an increase of 11.14 percent over 2016.
The rapid development of payment business, casting the core entrance of the financial technology system. In 2017, the transaction scale of the company's third-party payment business reached a breakthrough of more than 1.5 trillion yuan, an increase of 66.67% over 2016, and the transaction scale of the company's third-party payment business reached a new high. According to the statistics of iResearch and Analysys Q3 in 2017, the company ranks fourth in the field of mobile payment in the country. The company not only provides customized comprehensive solutions of "payment + finance" for large and medium-sized enterprises in B2B field, as well as retail, e-commerce, logistics, FMCG and other industries, but also helps "small and medium-sized enterprise customers" to improve their user business operation level in an all-round way through "linkage payment housekeeper". Improve the intelligent and efficient ability of transaction management and fund management. The payment link precipitates the real consumption scene, accumulates a large amount of financial data, and cooperates with the financial information service, which becomes the entry-level business of the company's financial technology system.
Data value-added services are growing rapidly. The company's data business achieved revenue of 98 million in 2017, an increase of 127.61% over 2016 and a rapid growth. Relying on massive data, the company provides "data risk control and analysis modeling" big data services for enterprise users' life cycle management from the perspective of inclusive finance and financial risk control, and has provided intelligent risk control services for dozens of financial institutions. The company integrates its own payment settlement + big data risk control ability, builds a neutral third-party consumer financial cloud service platform, connects the consumer scene party and the financier, and helps financial institutions to innovate consumer financial products. Provide users with convenient consumer financial services.
Block chain technology to achieve landing. Part of the company's blockchain technology was implemented in 2017, which is embodied in:
1) the "financial transaction deposit system based on block chain" cooperated with Xiamen Bank, through the pilot of the system, can simplify the reconciliation processing of all business participants, improve the efficiency of business processing, and provide reliable data services for information disclosure for regulators. 2) aiming at the data service scenario, the company has developed a prototype system of "data collaboration platform", which establishes a cooperation platform between the data requester and the data service party, which does not retain data and provides more secure and reliable data access services. at the same time, based on the data request records kept in the distributed ledger, reconciliation and settlement services can be provided for all parties to the transaction. 3) based on the bottom framework of R & D "optimal chain", combined with the company's cross-border payment business, the company successfully launched the supply chain financial subsystem by using blockchain technology to provide cross-border receivables pledge and credit services for external enterprises' factoring business.
Investment advice: the company transformed into "financial technology services + intelligent manufacturing" two-wheel drive, card position third-party payment, precipitated a huge amount of scenes and data; expand big data services, and build a consumer financial cloud platform connected to multiple parties, growing rapidly. It is estimated that the EPS of the company from 2018 to 2019 is 0.48yuan and 0.55yuan respectively. Given the "overweight-A" rating, the 6-month target price is 15 yuan.
Risk tips: industry development is not as expected; business development is not as expected; regulatory risk.