Aerospace Information (600271): Optimized Revenue Structure, Rising Gross Margin Accelerates Smart Netcom New Industry

Aerospace Information (600271): Optimized Revenue Structure, Rising Gross Margin Accelerates Smart Netcom New Industry
Event: The company achieved revenue of 119 in 2019H1.1.4 billion, -23.5%; net profit attributable to mother 6.810,000 yuan, a year-on-year increase of +80.25%, net of non-attributed net profit4.180,000 yuan, -39.02 %%. Revenue side: 2019H1 organizational structure optimization, anti-counterfeiting tax control business affected by policy growth accelerated in the first half of 2019 The company optimized the organizational structure, adjusted the gold tax and corporate market, financial technology and services, and the Internet of Things and applications three major industriesTax industry, fintech service industry, smart industry and internet industry. In the reporting year, operating income decreased by 36 compared with the same period last year.600 million, -23.52%.In terms of product structure, the proportion of channel sales and integration decreased. From the perspective of different industries: (1) Anti-counterfeiting tax control and related business income29.70,000 yuan, a year-on-year increase of 9.41%, the company has accumulated more than 13 million users in the tax-related area, and more than 1.6 million new users in 2019H1, the main main factors affecting the overall revenue policy; (2) network software and system integration business.0 million yuan, -18.32%, the company proactively reduced the low-margin system integration business, optimized the business structure, and concentrated in the core industries. Although the overall revenue decreased, the gross profit margin increased by +2 year-on-year.32pct; (3) Channel sales income 52.10,000 yuan, -39.6%, also due to the adjustment of business structure, reducing low-margin business. The Internet of Things spins off the wisdom and online information industry: Wisdom focuses on key customers, and the rapid growth of online information increases the system integration business. Reporting scale companies have reduced their business volume but their gross margins have increased, mainly due to the company’s efforts in public security, government affairs, and border areas.Inspection and other key businesses.北京夜生活网In the field of public security, the first phase of the Ministry of Public Security’s intelligent public security project was completed, and the national hotel industry system system and public security end development architecture were upgraded. Nearly 20 projects in the border inspection business area were successfully implemented with a total contract value of more than 200 million. Smart food and agriculture businessThe cumulative supplementary contract amount exceeds 0.600 million. At the same time, the company actively exerted its synergistic advantages. In 2019H1, the online information industry has successfully won 25 new pilot projects, and has expanded 63 successful pilot projects, ranking first in the bid winning rate.Starting from independent, safe and reliable business, it penetrates into multiple industries; at 重庆耍耍网 the same time, it further expands trust exchange products. In the SASAC, the highest verification, the highest law, etc. have alternatives. The net profit after deduction is not affected by the optimization of the business structure, but the gross profit margin has increased steadily.810,000 yuan, 80 compared to the same period last year.25%, net profit after deduction to mother 4.180,000 yuan, -39.02%.Non-recurring gains and losses mainly include gains and losses from changes in fair value of restricted shares of PetroChina Capital2.72 trillion and 0 government subsidies included in the current profit and loss.4.5 billion. Gross profit margin: Reported interest rate, the company’s overall gross profit margin is 20.7%, a year-on-year increase of 4.4pct, compared with 20 last year.4% increase to 0.3pct, the overall gross profit margin has risen steadily; the expense side: the company’s sales expense ratio 3.8%, year on year +1.6pct, mainly pay for staff (+0.750,000 yuan) and asset depreciation and amortization (+0.1.1 billion) increase.Management expense ratio under the new accounting standard (excluding R & D expenses) 5.0%, +0 year-on-year.4pct, mainly due to labor costs.The increase of financial expenses by the interest expense of convertible bonds was about 21 million yuan. The R & D expansion continued to increase, accelerating the layout of the new industry of smart network and telecommunications. A total of 2 R & D investments in this period.73 trillion, of which expensed expenses2.64 ppm, + 34% year-on-year, mainly due to the increase in labor costs and outsourcing costs.The report pointed out that the company has reorganized the “1 + 4 + 2 + N” R & D layout, mainly including anti-counterfeiting tax control, cloud tax intelligence, smart food and agriculture, smart transportation, smart office, and online information industry.And completed 5 national dialing paper applications. Actively optimize the allocation of capital resources, receivables, and prepayments are expected to improve cash flow in the second half of the year. The company’s receivables and prepaid accounts have increased rapidly, mainly due to stocking and prepayments for e-commerce and retail businesses.There has also been a corresponding increase in inventory.Operating net cash flow YoY +9.14%, the report reported that sales rebates and cash collection efforts were strengthened to reduce the cash-on-purchase ratio. Investment net cash flow YoY -41.31%, mainly for equity investment in the subsidiary Aerospace Network Security4.6.5 billion. Funding net cash flow YoY +8.03%, mainly due to new short-term loans obtained in the current period.2 trillion and distributed dividend YoY +2.09 million yuan. Expand foreign cooperation, use the advantages of external capital resources to promote the scale of cooperation and win-win reports, and the company expanded its foreign cooperation efforts.Strengthen the communication of local government needs and establish a three-dimensional marketing system; at the same time, deepen cooperation with large B companies such as the Railway Corporation, China Everbright Bank, China Merchants Shipping; deepen cooperation with large Internet vendors such as Ali, Tencent and Jingdong to jointly build an industrial ecosystem,Achieve win-win cooperation. Earnings forecast and estimation We expect the company’s total revenue in 2019-2021 to be: 286.8 ppm, 318.400 million, 342.200 million, net profit attributable to mother: 19.300 million, 22.200 million, 24.600 million, corresponding to the current price of 21 respectively.2 times, 18.4 times, 16.6 times, give “overweight” rating. Risk reminders: risks of changes in industry policies, intensified risks of market competition, management risks of molecular companies, less-than-expected technological research and development, systemic risks