The company released the third quarter of 2017 report: in the first three quarters of 2017, the company achieved 2.302 billion yuan in main business income, down 2.53 percent from the same period last year; the net profit attributed to shareholders of listed companies was 73.8206 million yuan, an increase of 18.06 percent over the same period last year. The net profit for 2017 is expected to be 119 million to 199 million yuan, with a range of-25 to 25 per cent.
The performance is in line with expectations and new business is expected to bring growth momentum.
Judging from the operating situation of a single quarter, in the third quarter of 2017, the company achieved a total operating income of 985 million yuan, an increase of 30.46% month-on-month and 8.96% over the same period last year. The net profit attributed to shareholders of listed companies was 46.2743 million yuan, an increase of 41.96% over the same period last year, down 8% from the previous month. It is worth noting that Jiangsu Runxing, a new associate company in this period, has made a great contribution to the company's profits, resulting in an increase in the company's investment income from-4.97 million last year to 120 million yuan, which is expected to continue to have a positive impact on performance in the future.
We believe that the slow growth of the company's original business is mainly due to increased competition in the industry, and the company may be looking for new business to bring new growth momentum, which may be driven by this year's transition to satellite communications.
In addition, the company's quarterly results have a certain periodicity, and the fourth quarter of each year is the peak period for the company to recognize revenue and net profit.
Actively seek strategic transformation and may become the first private satellite operator in China.
This year, the company once again launched a strategic transformation, the layout of satellites and communications areas. The company currently has scarce satellite resources, and the potential market space for Ka high-throughput satellites is huge, especially under the catalysis of the "Belt and Road Initiative" policy. If the company successfully acquires a stake in Malaysia's ASN Satellites Sdn Bhd company, it will further promote the company's rapid entry into areas such as satellite operations and communications. According to the company's plan, the company will set up ground stations around the world, and the company can operate in Southeast Asian countries along the track of "Belt and Road Initiative" to provide seamless communication solutions covering the whole world. the satellite communication operation business is expected to become a new growth point of the company in the future.
Optimistic about the company's transformation, layout and satellite operation, covering it for the first time and giving it a rating of "increasing its holdings".
Relying on RFID, the company has a good foundation of the inductive layer of the Internet of things, which promotes the continued growth of other businesses of the company; in-depth cooperation with OTT, the Internet of things, OTT and innovative financial business go hand in hand to build a closed loop of intelligent living business; and the company has scarce satellite orbit resources through epitaxy to actively promote the transformation to the international satellite communications operation strategy. Optimistic about the company's restructuring and layout of satellite operations, it is expected that the net profit from 2017 to 2019 will be RMB 18,000,000, corresponding to the price-to-earnings ratio of 124-67-57, which is covered for the first time and rated as "overweight".
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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