Events:
The company realized operating income of 585 million yuan, an increase of 0.48% over the same period last year, and an operating profit of 90 million yuan, an increase of 58.25% over the same period last year. The net profit belonging to shareholders of listed companies was 0.83 million yuan, an increase of 66.16% over the same period last year. The net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 71 million yuan, an increase of 75.07% over the same period last year.
Investment highlights:
1. Breakthroughs in artificial intelligence business and orders have been obtained one after another.
The first battle in the field of artificial intelligence has achieved remarkable results, with a gross profit margin of 40.26%. The company has worked deeply in the field of artificial intelligence for many years, and has developed intelligent terminal products such as tethered multi-rotor UAV, heavy load UAV and rotor engine, as well as face recognition system, intelligent video analysis system and so on. During the reporting period, the artificial Intelligence Division of the company intensified its promotion and obtained orders from a unit in Bulgaria, Anhui and Xi'an. On August 28, 2018, the company signed a cooperation agreement with Anhui Tiger Electric Technology Co., Ltd. Hefei Saiwei will use the relevant technology of artificial intelligence to provide customers with 100 indoor electric track artificial intelligence inspection robots. Officially enter the field of intelligent inspection robot.
2. The gross profit margin of smart city business is rising, and it is optimistic about smart city business for a long time.
During the reporting period, the operating income of the smart city business decreased by 35.71% compared with the same period last year, but the company's cost control properly decreased the operating cost by 39.72%, and the overall gross profit margin increased by 5.34%. Saiwei actively uses cloud computing, big data and other technologies to provide smart city operation platform and new smart city solutions, improve various management methods for smart city construction and operation, and establish and improve industry standards. At present, the Wisdom Jishou PPP project, which has been launched as expected, is optimistic about the development of Smart City business for a long time.
3. Big data enhanced the management ability of business operation and maintenance and won large project orders.
The company has strengthened the late operation and maintenance management of big data's business, actively introduced talents and expanded the market. The company has newly signed the Beijing Jiuxianqiao data center project and the general contract for the construction of the Wusha new energy data center project in Shunde District. The total amount of big data project contract signed is 550 million yuan.
Profit forecast and valuation: considering that the company adheres to the R & D strategy, increases in-depth research and technology application in the fields of smart city, artificial intelligence and big data, and actively expands in the market, it has made a lot of breakthroughs. The company's performance is expected to increase gradually. It is estimated that the company's net profit from 2018 to 2020 will be 275 million yuan, 406 million yuan and 467 million yuan respectively, the corresponding EPS will be 0.64,0.94,1.08 yuan respectively, and the current market capitalization PE will be 9.53,6.47,5.62 times respectively.
Risk Tips:
As a result of the macroeconomic downturn, the business is lower than expected, the operating income of smart city is not as expected, and the promotion of artificial intelligence business is not as expected.
