Taiji shares (002368) third quarterly report comment: single quarter revenue growth speeds up profitability
Investment Highlights The company released three quarterly reports with steady growth in performance.
In the first three quarters of 2019, the company achieved operating income of 45.
84 ppm, an 18-year increase.
02%; net profit attributable to mothers was 76.18 million yuan, a year-on-year increase of 9.
58%; net profit of RMB 60.33 million deducted from non-attributed mothers, a decrease of 13 per year.
The company’s third quarterly report for the previous period stated that the company expects to realize net profit attributable to its mother in the first three quarters of 19,695,28.3 million yuan, an increase of 0% -20%.
In the first three quarters of 2019, the company’s long-term contract value and operating income grew steadily each year. Single-quarter revenue growth accelerated.
From the single quarter data, in 19Q3, the company achieved operating income of 15.
71 ppm, an increase of 32 in ten years.
27%; net profit attributable to mothers was 54.7 million yuan, an annual increase of 10.
6%; the net profit of deducting non-attribution to the mother is 44.93 million yuan, a decrease of 10 per year.
With 19Q1 and 19Q2 scores, 19Q3 revenue growth accelerated (19Q1, 19Q2 revenue growth was 9 respectively.
Profitability has gradually improved.
In the first three quarters of 2019, the company’s gross profit margin was 23.
89%, an increase of 2 over the same period last year.
92 averages, which is 0 higher than 19H1.
The company controlled costs, expenses, and gross margins gradually increased, internal management was effectively optimized, and profitability was gradually increased.
It plans to issue convertible bonds and develop independent and controllable, cloud computing and industrial Internet businesses.
The company announced on October 17, 2019 that it plans to publicly issue convertible bonds to raise RMB 1 billion.
The proposed investment of the raised funds is in the following projects: Tai Chi’s independent controllable key technology and product research and development and industrialization projects, Tai Chi Cloud Computing Center and Cloud Service System Construction Project, Tai Chi Industrial Internet Service Platform Construction Project (acquired by Huidian Technology minority shareholders) 9% shares, industrial Internet service platform construction project, Taiji industrial Internet service platform construction project) and supplementary working capital.
(1) In the field of autonomous controllability, the company is the overall unit independently controlled by China Electronics Technology Corporation, and its autonomous controllable products are relatively complete.
In 2011, the company invested in the People’s University Jincang, layout database; in 2013, the company acquired Huidian Technology, layout OA, electronic document software, browser and plug-in; in 2015, invested in Kingdee, layout middleware; in 2017, acquired Quantum Albert, layoutFile management system.
(2) In the field of cloud computing, the company actively deployed the “Government Cloud” market.
Since 2017, the company has successively won bids and implemented e-government cloud in Hainan Province, and cloud platforms in Shanxi Province.
As of July 2018, more than 450 application systems of more than 100 commissions and offices have been deployed on the Beijing Municipal Government Cloud.
(3) In the field of industrial internet, the TECO industrial internet platform independently developed by the company has obtained the AII industrial internet platform trusted service evaluation certification.
It can provide a big data service system for industrial enterprise users, and provide the development and operation of algorithms, models, and applications.
重庆耍耍网 Establish a joint laboratory with Huawei for win-win cooperation.
In the first half of 2019, the company and Huawei set up a joint innovation laboratory, which is mainly targeted at government, finance, manufacturing, energy and other industries. The two parties plan to jointly create an open and compatible industrial ecosystem to support the digital transformation of the ICT industry in all walks of life.
Earnings forecasts and investment advice.
We estimate that the company’s net profit attributable to its parent in 2019-2021 will be 3 respectively.
9.5 billion, 5.
1.1 billion, 6.64 ppm, EPS is 0.
96 yuan, 1.
24 yuan, 1.
61 yuan, corresponding to PE is 33 times, 25 times, 20 times.
Maintain “Buy” rating.
The issuance of convertible bonds exceeds expected risks, R & D risks, policy 杭州桑拿 risks, domestic substitution of database products, and market development progress is less than expected.