The company released its three-quarter report in 2019, with an operating income of 2.497 billion yuan, an increase of 29.42% over the same period last year, and a net profit of 89 million yuan, an increase of 13.81% over the same period last year.
The operation remains stable. In the first three quarters of 2019, the company's gross sales margin was 20.55%, compared with 19.57% in the same period last year, and the net sales margin was 6.49%, compared with 6.05% in the same period last year. The net operating cash flow was 133 million, compared with 48 million in the same period last year, and the operating cash flow improved significantly.
To become a supplier to Aliyun in Taiwan. After the first batch of Ali Yun general set technology delivery framework suppliers and business Taiwan technology delivery framework suppliers, the company was again shortlisted for Ali Yun data Taiwan technology delivery framework suppliers. Under Aliyun's "integrated" mode, the company and Aliyun continue to carry out more in-depth cooperation in the field of smart city and digital government, and will also launch more company-led smart city and digital government joint solutions that integrate Aliyun's capabilities.
Increase 5G research and development. The company builds a business-oriented 5G scenario billing system. The billing capability sinks to the edge of the core network and carries the billing and policy control of 5G slices; in terms of CRM, it takes CPCP as the center of the entire B domain, integrates the sales value services provided by 5G, and combines the technical capabilities of PaaS and AI to build a cloud computing platform based on the 5G era.
Investment suggestion: we are optimistic that the magnificent demeanor of cloud computing will promote the great-leap-forward development of the company's business. It is estimated that the EPS from 2019 to 2020 will be 0.44 yuan and 0.51 yuan respectively, maintaining the buy-An investment rating and the 6-month target price of 11 yuan.
Risk hint: the development of new business is not as expected; the degree of production is not as expected.