Items:
On the evening of August 28th, the company released its results for the first half of 2017, with operating income of 3.287 billion yuan (127.93% YoY) and net profit belonging to shareholders of listed companies of 76 million yuan (- 24.36%YoY), or 0.07 yuan per share.
Peace viewpoint:
Sales increased steadily, and the first-half results were in line with expectations: the company's operating income in the first half of the year reached 3.287 billion yuan (127.93% YoY), and the net profit attributable to shareholders of the listed company was 76 million yuan (- 24.36%YoY), with earnings per share of 0.07 yuan. The impact of non-recurrent profit and loss on net profit in the first half of this year is about 1.68 million yuan (about 59.72 million yuan in the same period of 16 years). After excluding the impact of non-recurrent profit and loss, the net profit belonging to shareholders of listed companies increased by 83.07% in the first half of this year compared with the same period in 16 years.
Compared with the same period last year, the sales of electronic components of the company increased steadily in the first half of this year, and the demand of home appliance intelligence, consumer electronics, automotive electronics and other industries increased continuously, and the company implemented the strategy of internal promotion and extension integration to rapidly expand the sales scale. the sales scale and profitability have increased to a certain extent, thus improving the company's own industry status and enhancing the company's stable profitability.
Relying on the excellent and soft platform, build the e-cloud networking platform: the company's industrial cloud networking platform takes B2B commerce as the starting point to create a vertical ecosystem in the electronics industry. In the first half of 2017, the number of registered users of Yousoft 5 reached 5663, the number of standard devices exceeded 8 million, and Yousoft Mall was officially launched. At the same time, the company promotes the implementation of the medium-and long-term strategic financial sector, and builds and improves the financial sub-platform of the cloud networking platform for the company's electronic information industry. The company has invested in the establishment of Hengqin Gold Investment, which is conducive to building and improving the financial sub-platform of the cloud networking platform for the company's electronic information industry, so as to enhance the ability of financial product development and service operation of the platform. The company's layout of supply chain finance can provide financial support for small and medium-sized manufacturing enterprises, improve cash flow in the industry, and help enterprises develop rapidly.
Rely on the strength of manufacturers to build a large distribution platform: the company actively carries out industry integration and cooperation, enriches the company's technology distribution and resource-based product lines, and creates a complete and stable pyramid product line. The company has absorbed many high-quality brands such as SK Hynix, MTK, Lou, Dexin, Microcore, Hui Ding, Sanken and many other high-quality brands in the horizontal integration of the industrial chain. on the one hand, the company will further improve the electronic distribution product line of Shenzhen Huashang Dragon, enhance the company's resource advantages, provide customers with a more comprehensive package of services, and increase the stickiness of the core large and medium-sized customers, so as to improve the company's comprehensive market competitiveness and profitability. On the other hand, the sale of attractive electronic products such as MTK and SK on the company's industrial cloud networking platform can attract more small and medium-sized customers to the platform, help to expand the registered users of the platform and increase the stickiness of the platform. At the same time, the company's great grandson company Huashang Dragon Technology and Shenhua Yunlian (Hong Kong) Co., Ltd. signed a business cooperation agreement to jointly carry out polarizing film cutting and sales business. In the future, the company will have the right to distribute the core polarizers in the industry and supply to AMOLED manufacturers, which will fully benefit from the improvement of AMOLED penetration.
Investment strategy: with the transfer of the electronic information industry to China, we are optimistic about the transformation of Yingtang Intelligence Control in electronic distribution and the Internet of things. We maintain our performance forecast for the company. It is estimated that the company's operating income for 2017-2019 will be 80.54 plus 11,27777 and 14.661 billion respectively, and its net profit will be 2.93 million and 386 million, respectively. The corresponding EPS will be 0.27 and 0.36 will be 0.47 yuan, and the corresponding PE will be 29-22-17, maintaining the "recommended" rating.
Risk tips: intensified competition in the industry; agency authority risk.