Main points of the report

Event description

The company released its 2016 annual report and forecast for the first quarter of 2017 on April 6: revenue in 2016 was 1.05 billion yuan, an increase of 56.51% over the same period last year, and the net profit was 116 million yuan, an increase of 39.20% over the same period last year. The non-net profit was 115 million yuan, an increase of 43.52% over the same period last year. The profit in the first quarter is expected to be 16.6865 million yuan to 19.7204 million yuan, an increase of 10% and 30% over the same period last year.

Event comment

The core business is growing rapidly and the system integration continues to be stuck. The revenue of the core business IT infrastructure services reached 432 million yuan, an increase of 55.91% over the same period last year, maintaining the momentum of rapid growth. The revenue of the system integration business reached 607 million yuan, an increase of 57.83% over the same period last year, laying a stronger card position advantage for core business expansion, and is expected to bring faster growth of infrastructure services business. In terms of different industries, the banking industry achieved revenue of 605 million yuan, an increase of 64.42% over the same period last year, a gross profit margin of 22.24%, a decrease of 8.52% over 15 years, and a revenue of 218 million yuan in the telecommunications industry, an increase of 32.60% over the same period last year. Gross profit margin increased by 16.36% to 37.53%, which is expected to be mainly due to changes in the proportion of integrated business.

Downstream customers made another breakthrough, vertical and horizontal expansion steadily. By the end of 2016, the number of customers of the company had reached 666, an increase of 148 over the end of the previous year; the number of machines guaranteed by operation and maintenance services reached 85200, a substantial increase of 77.97% over the previous year; a total of 7824 service requests were processed for the whole year, an increase of 92.95% over the previous year; 6569 people were inspected, an increase of 65.09% over the previous year. The company's downstream customers have made another breakthrough, business indicators have continued to improve, and vertical and horizontal expansion has been steadily advanced.

Personnel have greatly increased their confidence in development. The number of employees hired by the company reached 354 in 2016, and the number of employees at the end of the period reached 760, an increase of 33.10% over the end of 2015. We believe that the large-scale growth of the company's employees is mainly based on the company's judgment on the rapid growth of orders and the continuous improvement of the industry trend, which can be regarded as a leading indicator of performance. Due to the relatively low output of new employees in the short term, it is expected to put some pressure on the company's costs and expenses in the first quarter, and the incremental performance is expected as the learning effect is reflected rapidly in the subsequent quarter.

Intelligent power and operation and maintenance cloud to open up a new space for growth. Major shareholders plan to increase in all aspects and accelerate the promotion of intelligence and cloud operation and maintenance. The layout in the field of big data intelligent operation and maintenance will continue to advance and strengthen the advantages of leading technology. Cloud operation and maintenance has launched a low-cost, high-efficiency IT infrastructure automation operation and maintenance cloud service management platform for small and medium-sized enterprises, and adopts the user conversion mode of online free and offline charges, which is promoted rapidly and has a broad market space.

Risk tips: 1. The progress of the non-public offering is not as expected.

two。 The speed of cloud operation and maintenance is not up to expectations.