[event] on October 21, 2016, the company released the 2016 Q3 performance report. From January to September 2016, the company achieved: operating income of about 396.0387 million yuan, an increase of about 5.01% over the same period last year; net profit belonging to shareholders of listed companies fell by 14.31% year on year, compared with the growth rate of-46.5% and-34.3% of Q3 in 2015 and 2014, the decline has been greatly narrowed. The withholding non-net profit belonging to shareholders of listed companies is about 11.3154 million yuan, an increase of 31.96% over the same period last year, which is much better than the-67.2% and-58.6% growth rates of Q3 in 2015 and 2014.
Enter the NB-loT operating platform market and create new growth points for the company's business: in June 2016, Huawei signed a cooperation memorandum with Fuzhou Municipal Government, Fujian Economic and Informatization Commission and Zhirun Company, and the Quartet will cooperate in the research and development of narrowband Internet of things (Internet of things) products and business pilots, so as to build Fuzhou into a state-level frontier base for emerging industries with characteristics, demonstration, leadership and landmark. Xing Rongji, a subsidiary of the company, will rely on the Internet of things public service platform, open up the upstream and downstream of the industry, build a full ecological chain platform, and strive to operate through the Internet of things public service platform for three to five years, so that the number of various intelligent devices and wearable devices accessing the public service platform of the Internet of things will reach 500000, creating the largest ecological platform of the Internet of things in China.
The policy continues to increase, and the company's gold engineering and Sandian engineering business are waiting to blossom: it is proposed in the 13th five-year Plan for the Development of quality Supervision, Inspection and Quarantine of the State Administration of quality Supervision, Inspection and Quarantine: it is necessary to promote the deep integration of quality inspection business and informationization. implement the "Internet + quality inspection" action plan, implement the "smart port", "wisdom quality inspection" and other projects, and build a "big platform" for quality inspection cloud computing. We will steadily promote the construction of the e-government intranet of the General Administration in accordance with the requirements of the Central Committee. The company's project and experience accumulation will ensure that the company's policy will continue to increase the background to seize the market opportunities, gold engineering and three power engineering business waiting to blossom.
Investment suggestion: we estimate that the EPS of the company from 2016 to 2017 is 0.04 yuan, 0.09 yuan and 0.10 yuan respectively. Give a buy-A rating with a 6-month target price of 20 yuan.
Risk tips: 1, macroeconomic growth is not as expected, so that the company's business performance is not as expected; 2, the company's Internet of things platform business is not as expected; 3, the company's quality inspection information business is not as expected.
