Event
The company announced on the evening of April 19:
Annual report for 2017: operating income was 5.431 billion yuan, up 13.15% over the same period last year; net profit was 228 million yuan, up 536.96% over the same period last year; and deducting non-net profit was 100 million yuan, up 668.95% over the same period last year.
Traditional business develops steadily, cloud computing business grows at a high speed.
The main business income of the company in 2017 is as follows:
(1) the revenue of the enterprise IT system solution is 4.579 billion yuan, an increase of 1.16% over the same period last year, and the gross profit margin is 13.32%, a decrease of 3.21% over the same period last year.
(2) the revenue of cloud computing products and services reached 809 million yuan, an increase of 253.06% over the same period last year, and the gross profit margin was 34.88%, an increase of 5.33% over the same period last year.
2017 is the key period of the company's strategic transformation, acquire GD and vigorously expand cloud computing
The growth of the company's performance was mainly due to the rapid growth of cloud computing and the high gross profit margin, as well as the consolidated contribution of the acquired GD company; the non-recurrent profit and loss mainly came from the control of the company's concession Rand network, and the investment income during the reporting period reached 358 million yuan, an increase of 616% over the same period last year; the company's overall gross profit margin was 16.56%, a decrease of 0.60% over the same period last year, mainly due to a decrease of 3.21% in traditional business gross profit margin The expense rate during the period was 17.68%, an increase of 1.7% over the same period last year, mainly due to the consolidation of GD and the increase in borrowing.
Promote the "one core + four clouds" development strategy, and gradually develop the cloud computing business.
In 2017, the company laid out full-chain core technologies and products around "connection + platform + intelligence". At present, the company already has core technology products such as Internet of things chips, cloud computing basic software and hardware and cloud management platform, big data real-time analysis. At the same time, the company integrated and promoted the cloud computing-related business, forming four industry clouds: smart safety supervision, smart logistics, smart tourism and smart retailing. The scale of the company's cloud computing business grew rapidly during the reporting period. On the one hand, the expansion of overseas retail industry cloud business brought revenue of 356 million, on the other hand, the revenue of independent brand "Tianchengyun" increased by 97.83%. The share of cloud computing revenue increased from 8.83% of 2017H1 to 15.01% disclosed in the 2017 annual report.
Investment suggestion
It is estimated that the company's profits from 2018 to 2020 will be 2.83,3.69 and 472 million yuan respectively, and the EPS will be 0.26,0.33 and 0.43 yuan respectively, maintaining the "recommended" rating.
Risk hint: traditional business is not going well, cloud computing business expansion is not as expected, and competition is intensified.
