Main points of investment
In 2017, the company achieved 3.25 billion yuan in operating income, down 20.2% from the same period last year, and the net profit returned to its mother was 300 million yuan, an increase of 23.6% over the same period last year. At the same time, the company released the first quarter report of 2018: the operating income in the first quarter of 2018 was 673 million yuan, an increase of 17.5% over the same period last year; and the net profit of returning home was 35 million yuan, an increase of 286% over the same period last year.
The increase in gross profit margin and investment income contributed to the growth of the company's performance. The company's revenue fell 20.2% in 2017, but its net profit increased by 23.6%, thanks to a sharp increase in gross profit margin and investment income. On the one hand, the company's gross profit margin increased significantly by 5.4% in 2017; on the other hand, in 2017, the company spun off Beijing Xinsi software outsourcing business, adjusted its equity structure, and sold part of its stake in Zhonghe technology. generated 214 million yuan in disposal equity investment income, accounting for 7.5% of the total income from 4.9%.
And show Huatong cloud data, inject strong cloud service capability. Huatongyun data was consolidated on August 18, 2017, which was incorporated into the listed company's revenue of 260 million yuan and net profit of 72.78 million yuan, which significantly thickened the performance of listed companies. Huatong Cloud data is a new integrated Internet service provider with leading technology in China, which can greatly enhance the resources of the cloud service platform and inject strong cloud service capabilities into the company's business sector.
We will build southwest data centers and lay out national data center services. The company signed the "Southwest Cloud Computing Intelligent Industry Base Project Cooperation Agreement" in December 2017, and intends to invest 65 million yuan to set up Chengdu net New Company to build southwest China Cloud Computing Intelligent Industry Base. The Southwest Cloud Computing Intelligent Industry Base project has a planned land area of about 150mu and a total construction area of about 100000 square meters. when completed, it can provide about 10, 000 4.5KW cabinets and accommodate 160000 servers. In addition, the company will focus on distributed AI and work together to create products with core competitiveness.
Profit forecast and investment advice: we adjust the company's EPS to 0.37,0.43 and 0.47 yuan respectively from 2018 to 2020 to maintain the "prudent overweight" rating.
Risk hint: data center construction process is not as expected, goodwill impairment risk, cloud computing industry competition intensifies