The company announced that Changshi Communication, a wholly-owned subsidiary, won the bid for the network integrated maintenance service in six provinces of Shanxi, Fujian, Shanghai, Liaoning, Guizhou and Guangdong in China Mobile Limited's network integrated maintenance service procurement project from 2020 to 2022.
Network integrated maintenance service is one of the company's main business, benefiting from the upsurge of 5G construction. 2020-2022 is expected to be an important period for operators'5G construction, and the acceleration of 5G construction in the future will have a positive impact on the company's future operating performance. According to the amount of Changshi Communication at the time of bidding, it is estimated that the estimated purchase amount is about 3.444 billion yuan. There are different discounts for each project, and the above items are expected to contribute about 923 million yuan in operating income, accounting for 30.46% of the company's audited operating income in the latest period. The contents of the above winning projects include the network maintenance services of base station equipment and antenna feeder, iron tower, repeater room, WLAN, transmission line, guest collection and home guests. In the bidding for the project in China Mobile Limited's nine provinces, a total of 27 units won the bid, and a total of 6 provinces won the bid, with the largest number of winning provinces and the first place in the overall contract purchase amount.
The three business directions have a good momentum, and business performance has hit bottom and rebounded. The intelligent information transmission service has been deeply precipitated. The company has established long-term cooperative relations with more than 20 provincial and municipal operators to form a strong Unicom three networks and short message channel resources covering the whole country. The customer base includes large enterprises in e-commerce, Internet, finance, logistics express delivery, third-party payment and other fast-growing industries.
The operation and maintenance of communication network will welcome the 5G acceleration year. The main customers are iron tower companies and operators, customer procurement is gradually centralized, which is conducive to the head enterprises, including the company, to obtain orders and achieve more revenue growth than the industry. The outsourcing of financial services has a broad space and a good current situation. The prosperity of consumer finance in China is still strong, driving the development of outsourcing business for a long time and rapid growth. The consumer financial outsourcing business of financial institutions has moved from the cost side to the income-generating side, further accelerating the penetration of outsourcing business in financial institutions. The company has issued a performance forecast, the company's goodwill, long-term receivables showed obvious signs of impairment during the reporting period, the annual net profit loss is expected to be 800-1.15 billion yuan.
Profit forecast: the net profit of the company from 2019 to 2021 is expected to be-10.12,2.58 and 310 million yuan respectively, and the EPS is-1.51,0.39 and 0.46 yuan respectively. It lost money in 2019, and the current stock price is 25.96,21.66 times the PE corresponding to the 2020-2021 results. Maintain the "overweight" rating.
Risk hint: systemic risk, industry competition intensifies.
