Core ideas:
1. Investment event
The company disclosed that from January to September 2019, the company achieved operating income of 1.165 billion yuan, an increase of 10.56% over the same period last year, and a net profit of 132 million yuan, an increase of 15.49% over the same period last year.
two。 Analysis and judgment
The performance grew steadily as scheduled. From January to September 2019, the company achieved operating income of 1.165 billion yuan, an increase of 10.56% over the same period last year. The net profit returned to the mother was 132 million yuan, an increase of 15.49% over the same period last year, and the growth rate increased by 9.64pct over the same period last year. The net cash flow generated by the company's operating activities from January to September 2019 was-78 million yuan, an increase of 52 million yuan over the same period last year, and the operating cash flow improved. During the reporting period, the company's weighted ROE was 7.39%, which was lower than the same period last year. EPS is 0.48 yuan per share, an increase of 0.06 yuan per share compared with the same period last year.
Profitability continues to improve. During the reporting period, the company's comprehensive gross profit margin was 25.63%, an increase of 0.37pct over the same period last year. The net interest rate was 11.87%, an increase in 0.43pct compared with the same period last year. The expense rate during the period was 13.73%, an increase in 2.92pct compared with the same period last year. Among them, the rate of management expenses was 13.52%, an increase in 2.66pct compared with the same period last year. The financial expense rate was 0.21%, an increase in 0.26pct compared with the same period last year.
Indirectly invest in science and technology start-up enterprises to open up the growth space. The company indirectly took a stake in the cloud computing enterprise Shanghai Youkade Information Technology Co., Ltd. (Ucloud). Ucloud is a leading third-party cloud computing service provider in China. Ucloud provides three model services: public cloud, private cloud and hybrid cloud. Public cloud is the core business, while private cloud and hybrid cloud are key areas of development. Public cloud products include computing, network, storage, database, data analysis and distribution; private cloud core products include UMOS, UMstor, MCP, proprietary cloud services and containers; hybrid cloud is mainly composed of cabinet hosting, customized physical machine, VPN gateway, public network, private network, cloud interconnection service, operation and maintenance service and other modules. Ucloud already has a number of industry-leading or innovative cloud computing technologies, including kernel hot patch technology, data rollback technology, software-defined network, load balancing technology, distributed database, safe house and so on. Ucloud ranked sixth in the domestic public cloud market in the first half of 2018.
The listing of Ucloud has been approved by the listing Committee of the Shanghai Stock Exchange. Youke achieved an operating income of 1.187 billion yuan in 2018, an increase of 41.39 percent over the same period last year, and a net profit of 77 million yuan, an increase of 8.78 percent over the same period last year. Realized deduction of non-net profit of 80 million yuan, an increase of 65.81%. At present, Ucloud has declared the listing of Kechuang Board, and has been approved by the Shanghai Stock Exchange listing Committee, and is in the process of submitting it for registration. As of April 1, 2019, the top ten shareholders of Ucloud hold 10.18% of the shares of Yuanhe Chongyuan Youyun Venture Capital Enterprise (Limited Partnership) in Zhongzhou Industrial Park.
3. A brief Analysis of Finance
From 2014 to 2017, the company's operating income continued to grow at a high speed, and has slowed down since 2018. The company's operating revenue increased by 10.56% in the first three quarters of 2019 compared with the same period last year. The net profit of homing increased by 15.49% compared with the same period last year.
From Q3 in 2017 to Q2 in 2018, the company's quarterly operating income growth rate gradually slowed down compared with the same period last year, and then more robust. Q3 revenue increased by 5% in 2019 compared with the same period last year. The company's overall quarterly net profit fluctuated little over the past eight quarters, with 2019Q3 net profit up 14% year-on-year.
During the period of the company, the expense rate 2019Q3 has increased compared with the same period last year, and overall it is still at the average level of nearly six years. 2019Q3's gross profit margin and net profit margin have increased steadily.
4. Investment suggestion
It is estimated that the EPS of the company from 2019 to 2021 will be 1.10 yuan per share, respectively, and the corresponding dynamic price-to-earnings ratio will be 15.19, 12.36, 10.18, respectively, maintaining the "recommended" rating.
4. Investment suggestion
It is estimated that the EPS of the company from 2019 to 2021 will be 1.10 yuan per share, respectively, and the corresponding dynamic price-to-earnings ratio will be 15.19, 12.36, 10.18, respectively, maintaining the "recommended" rating.