The performance is in line with expectations. The company achieved 1.517 billion yuan in the first half of the year, an increase of 19.94% over the same period last year; net profit was 92.802 million yuan, down 44.97% from the same period last year, mainly due to more income from the disposal of long-term equity in the same period last year; deducting non-net profit of 90.142 million yuan, an increase of 734.79% over the same period last year.
All financial indicators are improving. 1) Cash rebate: the net cash flow generated by operating activities in the first half of the year was-237 million, compared with-454 million in the same period last year; 2) Gross profit margin: the gross profit margin in the first half was 29.16%, an increase of 5.89% over the same period last year; and 3) the expense rate during the period was 19.55%, down 2.63% from last year.
The southwest cloud computing intelligent industry base project is worth looking forward to. The previous announcement of the company signed the Southwest Cloud Computing Intelligent Industry Base Project Cooperation Agreement with Chengdu Western things Group Co., Ltd., Wanhuitong Energy Technology Co., Ltd., and Chengdu Steel Vanadium Co., Ltd., Panzhihua Iron and Steel Group. According to IDC Circle, when the Southwest Cloud Computing project is completed, it will provide 10,000 4.5 kilowatt cabinets and accommodate 160000 servers for cloud computing and IDC infrastructure hosting and related services. After the overall operation reaches production, the scope of service will cover most of the southwest, making it the largest cloud computing data center in the southwest. According to the disclosure of the company, the current project implementation subsidiary Chengdu Netxin has been established and is promoting the construction of the first phase of the project as soon as possible, and the production and operation of the follow-up project is worth looking forward to.
Continue to develop social security innovation business. The company's mobile medical insurance payment APP-- medical express payment continues to open up the market, Zhejiang Province medical insurance mobile payment platform smoothly launched. In addition, the company has successively established strategic cooperative relations with Ant Financial Services Group and Ping an Medical, which highlights the strategic value of social security information business, and is also conducive to the accelerated landing of innovative business.
Investment advice: the company's business structure adjustment and asset integration have achieved initial results, various financial indicators are improving, and the follow-up is expected to maintain steady growth. It is estimated that the company's EPS in 2018 and 2019 will be 0.35,0.40 yuan, maintaining the buy-A rating, with a 6-month target price of 12 yuan.
Risk Tip: goodwill impairment risk.
