The net of Zhejiang University newly disclosed the annual report of 17 years and the first quarter report of 18 years. In 17 years, the company realized net profit of 303 million yuan, an increase of 23.65% over the same period last year. Basic earnings per share was 0.32 yuan, diluted per share at the end of the period was 0.29 yuan, and cash dividend was 0.50 yuan for every 10 shares. In 18 years, the net profit of Q1 company was 35.22 million yuan, an increase of 285.82% over the same period last year.
Comments:
The sharp decline in smart city revenue is mainly due to divestiture. In 17 years, the company achieved revenue of 3.253 billion yuan, a decrease of 20.26% compared with the same period last year. This is mainly due to the adjustment of business structure, the delayed acceptance of some engineering projects and the decline in business revenue in Smart City. By divesting traditional IT business and acquiring high-quality assets, the company has greatly enhanced its cloud service platform resources. In terms of business, revenue from smart city business was 939 million yuan, down 53.50% from the same period last year; revenue from smart business was 1.791 billion yuan, up 3.48% from the same period last year; revenue from smart living business was 233 million yuan, up 15.07% from the same period last year; and revenue from smart cloud service was 251 million yuan, a 17-year new M & A business. Considering that the restructuring of the company's business structure has been basically completed, Smart City business revenue is expected to return to positive growth in 18 years; and taking into account the prospect of quantitative investment, smart business revenue growth is expected to accelerate; other businesses are expected to maintain the current robust growth pattern; overall revenue is expected to achieve double-digit positive growth.
Profitability has improved significantly, and gross profit margin is expected to continue to rise. In 17 years, the company's gross profit margin reached 25.93%, an increase of 5.53 percentage points over the same period last year, mainly due to divestiture. In terms of business, the gross profit margin of the company's smart city business is 18.84%, up 4.01% from the same period last year; the gross profit margin of the smart business business is 19.98%, down 0.48% from the same period last year; and the gross profit margin of the smart living business is 70.11%, up 7.33% from the same period last year. The gross profit margin of the new business smart cloud service reached 49.02%.
Considering the rapid growth of revenue from the smart living business with the highest gross profit margin and the high gross profit margin of the newly acquired smart cloud services business, it is expected that the overall gross profit margin of the company will continue to improve.
Application research and demonstration project of bid-winning AI technology in specific fields. The project is listed in the 18-year key R & D plan of Zhejiang Science and Technology Department, and will build AI industry application basic platform, focus on breaking through the core key technologies such as knowledge graph construction, develop a set of typical application systems for intelligent operation, and build typical application demonstrations for all kinds of intelligent operation for financial, commercial and government departments. Winning the bid reflects the company's strength in the field of AI, and it is expected that the R & D results will further enable the company's business in the fields of big transportation, big finance and big health, so as to enhance the competitiveness of the company.
Profit forecast and investment suggestion: the EPS of the forecast company after full dilution in 2018-19 is 0.39 yuan and 0.52 yuan respectively, according to the closing price of 13.26 yuan on May 9, the corresponding PE is 34.2 times and 25.5 times respectively.
Risk hint: after the delay of project acceptance, Huatong Cloud's performance continued to be lower than expected for 18 years, resulting in systemic risk.
