Report summary:
In the first half of the year, the company achieved operating income of 282 million yuan, a year-on-year decrease of 15.99%; profit of 39.2525 million yuan, an increase of 6.01% over the previous year; net profit attributable to shareholders of listed companies was 30.9027 million yuan, an increase of 2.03% over the previous year; and earnings per share of 0.10 yuan.
The decline in revenue was due to a number of centralized intelligent transportation system integration projects, and revenue could not be confirmed in the first half of the year due to construction schedule. The gross margin of the newly added shipping informatization and technical service business was high, which helped net profit increase slightly. The company has made business progress in many areas. Taking advantage of the favorable opportunity of the nationwide network of expressway ETC within the year, business development in northern China and northwest China was strengthened; investment in urban intelligent transportation services was increased to test PPP model business; the development of intelligent transportation operation and maintenance services in Shanghai, Guizhou and other regions was accelerated; after integrating CNOOC information, a number of informatization construction projects were launched. YiHaitong lost 6 million yuan in the first half of the year. The operating results of its integrated shipping service platform in cooperation with Ali are not yet ideal. In the future, it will enrich and optimize the platform's products and services to increase the conversion rate. In the first half of the year, the company won the bid for a major project - the mechanical, electrical and traffic security project for the Liangping Zhizhong County project of the Chongqing Liangping to Qianjiang Expressway. The total amount of work won was 250.7 million yuan. The company, as the leader of the project consortium, undertook about 50% of the total amount of work won, which will benefit future performance. The company's net profit is expected to increase by 13% and 15% respectively in 2015 and 2016, and earnings per share are 0.19 yuan and 0.22 yuan respectively. Using intelligent transportation business as the cornerstone of development, the company is accelerating the development of shipping informatization and developing e-commerce businesses such as shipping. There has been a steady increase in performance, and the investment rating of increased holdings has been maintained.
Risk warning: The progress of the company's shipping informatization and shipping e-commerce business has fallen short of expectations, etc.