Event: the company's annual revenue in 2018 was 416 million yuan, down-26.94% from the same period last year, and the net return to home was 18 million yuan, down 80.45% from the same period last year. In the first quarter of 2019, the company achieved an income of 329 million yuan, an increase of 151.01% over the same period last year, and a net profit of 39 million yuan, an increase of 54.67% over the same period last year.

19Q1 revenue returned to high growth. The decline in company revenue in 2018 was mainly affected by the adjustment of the macro-economy and customers' own business plans, and some of them fell short of expectations in the implementation of projects. For the whole year, the income of the industrial production logistics system business was 350 million yuan, accounting for 84.05% of the revenue, with a gross profit margin of 31.24%, down-3.35 pct from the same period last year; the income of the operation and maintenance business was 65 million yuan, accounting for 15.56% of the revenue, and the gross profit margin was 53.23%, increasing 1.58pct over the same period last year. In 2018, the company's overall gross profit margin was 34.53%, down 2.24pct from the same period last year; sales expenses and management expenses increased by 39.70% and 9.72% respectively compared with the same period last year, with a large increase in expenses; and the net profit rate was 4.17%, down 12.13pct from the same period last year. In 2018, the company had a net operating cash inflow of 150 million yuan, compared with-71500 yuan in the same period last year, a substantial increase over the same period last year, mainly due to the company's continued efforts to strengthen the management of accounts receivable and settlement with suppliers. At the same time, the substantial increase in new business orders led to an increase in cash inflows. In 2018, R & D investment was 43 million yuan, an increase of 38.9% over the same period last year, accounting for 10.24% of revenue; 265 R & D personnel, an increase of 37.3% over the same period last year, accounting for 50.96% of the total number of the company. Revenue in the first quarter of 2019 increased significantly compared with the same period last year, mainly affected by the progress of project implementation. The number and amount of projects completed increased significantly compared with the same period last year.

The rapid growth of new orders, more diversified industry distribution: in 2018, the company's tobacco industry achieved income of 236 million yuan, accounting for 56.7%, non-tobacco industry 180 million yuan, accounting for 43.30%, the tobacco industry and non-tobacco industry income scale is more balanced. In 2018, the company added 1.256 billion yuan of orders, an increase of 74.52% over the same period last year. It made great breakthroughs in the business development of comprehensive super, petrochemical, electric power, automotive and other industries, and entered the comprehensive super, petrochemical, automotive, semiconductor and other industries for the first time. It has obtained orders for large-scale projects such as China Resources Wanjia, Zhongke Refining and Chemical Co., Ltd., BYD, and other new industries, and achieved zero breakthrough. By the end of 2018, there were still unrecognized revenue orders of 1.68 billion yuan. In the revenue structure of the company in the first quarter of 2019, the tobacco industry accounted for 39.92%, the new energy industry accounted for 16.03%, and other industries accounted for 44.05%. The proportion of other industries increased rapidly, and the zero breakthrough in non-tobacco and non-new energy industries in 2018 achieved remarkable results. as of March 31, 2019, the company has not yet confirmed the income order (including tax) of 1.63 billion yuan, which provides a strong guarantee for future performance.

Investment suggestion: the revenue from 2019 to 2021 is estimated to be RMB 9281,261max respectively, the net profit from homing in 2019 to 2021 is estimated to be RMB 1.27cm, and the EPS for 2019 to 2021 is estimated to be RMB 0.46pm and 0.84 respectively, and the current price corresponding to PE is respectively times that of 33-25-18. Maintain a "buy" rating.

Risk hint: the project implementation is not as good as expected.