The pressure of the main business is great, and the future depends on the adjustment of product structure and customer structure. The company's main business is the production and sales of automotive crankshafts, the main products are cars, light vehicles, micro-car engine crankshafts. Affected by the decline in the self-brand car market, the gross profit margin of the product has declined. In addition, in recent years, many independent brands are also building their own crankshaft production lines, and the company's market share is declining. We believe that the inflection point of the company's main business in the future mainly depends on the effectiveness of product structure adjustment and customer structure adjustment.
Tianjin state-owned enterprise reform target, the only listed company platform under the large group. The major shareholder of the company belongs to Tianjin products Group, which undertakes the business scale of 1x3 state-owned enterprises in the city, accounting for 12% of the city's imports and exports.
It is a key enterprise in Tianjin state-owned assets system. We judge that the product group is expected to be in the vanguard of the reform of state-owned enterprises in Tianjin. Haowu shares is the only A-share listed company under the property Group, which is expected to become the group's capital operation platform, and high-quality resources can be injected into the future.
The establishment of venture capital funds, cooperation with Silicon Valley Paradise, epitaxial development is expected. The company jointly initiated the establishment of Tianjin Fortune Jiaji Investment Partnership with Binkai Investment, Zhuolang Technology and Huixin Chuangfu. The establishment of the venture capital fund is to make full use of the country's existing preferential policies and social capital, and with the help of professional investment teams and investment channels, actively grasp the opportunities for the development of emerging industries, promote the coordinated development of the company's original industries and emerging industries, and further expand the main business for the company in the future. Cultivate new profit growth points to lay a solid foundation. In addition, the company also cooperates with Silicon Valley Heaven, and the company has signed a "Strategic Consulting and M & An Integration Service Agreement" with Silicon Valley Heaven. Silicon Valley Paradise has rich experience and resources in strategic cooperation and M & An integration in the capital market. and Xinjiang Silicon Valley Paradise holds 5% of the company, is the second shareholder of the company, and will share the fruits of the company's future development. The addition of Silicon Valley Paradise has opened up the imagination for the company's extension development.
The executive compensation reform plan has been launched to mobilize the enthusiasm of management. At the end of 14th, the company launched the executive compensation and performance appraisal system, which linked compensation to the growth of market value and the increase of return on net assets. The executive compensation and performance appraisal program is the first reform in the incentive mechanism made by the company in recent years, which is conducive to enhance the enthusiasm of managers, improve management efficiency, and benefit the development of the company in the long run.
Profit forecast and investment suggestions: we expect Haowu shares' EPS to be 0.05,0.06,0.08 yuan respectively from 2015 to 2017, the pressure on the main business is greater, and it is expected to achieve stable and restorative growth in 15 and 16 years. In the future, we will mainly focus on its state-owned enterprise reform and extension development.
Risk hint: the progress of state-owned enterprise reform may be lower than expected, and the development of extension may be lower than expected.
