In 2014, the company's total operating income was 554.8085 million yuan, up 0.88% from the same period last year; operating profit was 58.1071 million yuan, down 6.74% from the same period last year; net profit belonging to shareholders of listed companies was 51.0744 million yuan, up 8.69% from the same period last year; and earnings per share was 0.168 yuan.
The company's traditional transportation system integration business has progressed steadily. In 2014, it won a number of intelligent transportation engineering projects in Yunnan, Shanghai, Guangxi and other regions, and signed a number of operation and maintenance project contracts such as Pudong public security intelligent transportation system maintenance. Guizhou Renchi project, an important BT project of the company, was formally submitted for acceptance in August 2014, and the application of BT model will continue to be promoted in the future.
In terms of shipping information, the Haitong maritime integrated service platform has been in a running-in period since its trial operation, and the platform is not active enough. It has been introduced into other shipping lines and is attracting traffic by means of sales promotion. Haitong may introduce strategic investors in the future, and may launch a domestic trade and shipping platform.
At the end of 2014, the company absorbed and merged China Shipping Information, which is specialized in information construction and operation and maintenance services of China Shipping Group, and the company has complete system solutions and successful cases in a number of shipping information fields. it undertook about 100 million yuan of internal information business within China Shipping Group in 2013, and the project was mainly in the form of outsourcing. After the merger, the project undertaken by China Shipping Group will gradually tend to independent development, and it is expected that the related revenue and profits will increase significantly in the future.
It is estimated that the company's net profit in 2015 and 2016 will increase by 13% and 6% respectively, with earnings per share of 0.19 yuan and 0.20 yuan respectively, corresponding to 124,113 times of price-to-earnings ratio from 2015 to 2016.
In anticipation of the difficulties that may be faced with operating the shipping e-commerce platform, we downgraded the company's investment rating after a sharp rise in the share price caused by the shipping e-commerce theme. At present, the relevant improvement measures are being promoted, and the merger of China Shipping Information will lay a good foundation for the development of shipping information business. Based on the above-mentioned business improvement, we upgrade our investment rating to overweight, but recommend that we intervene after a correction in the share price.
Risk tips: the company's shipping information and shipping e-commerce business profits are lower than expected and so on.