Event: Haowu shares released its first quarterly report for 2015: the company achieved operating income of 101 million yuan, an increase of 8.23% over the same period last year, and a net profit of 4.1816 million yuan, an increase of 3.64% over the same period last year. The net profit after deducting non-return to the mother was 5.0202 million yuan, down 9.30% from the same period last year, and the basic earnings per share was 0.01yuan, which is in line with our expectations.
Main points of investment:
The company's performance has gradually stabilized.
1) in the first quarter, the company's operating income and net profit increased slightly, the gross profit margin rebounded compared with last year, and the performance gradually stabilized. We believe that the company's active development of new customers of high-quality passenger cars such as Guangzhou Auto has led to a continuous increase in the proportion of cars and light vehicles with high gross profit margin. As the sales of Changan and other major customers continue to grow rapidly due to the continuous introduction of competitive independent models, the company is expected to fully benefit. In addition, the company's investment income of 1.24 million yuan from the transfer of 25% equity in cloisonne in the second quarter will also form a certain support for the company's performance. 2) at present, the plant construction of the "crankshaft production line" project invested by Pengxiang, a major shareholder, has been basically completed, and the equipment has been relocated and installed and debugged one after another. According to the promise of the major shareholder Haowu Mechatronics, we expect that this year's "crankshaft production line" into listed companies, Jinhong crankshaft production line to complete the renewal and relocation is a high probability event. As the company actively develops new customers (successful development of Guangzhou Automobile, etc.), adjusts the product structure and puts into production new production lines with high automation rate (Jinhong crankshaft invests 140 million yuan to add two new production line layout, middle and high end), the company's business performance is expected to stabilize and improve.
The future will remain the same.
1) the major shareholder Haowu has excellent qualification of mechanical and electrical assets. In addition to benefiting from the development and growth of the controlling shareholder property Group, the company may become the capital platform for the securitization of the automotive electromechanical plate of the property group; 2) according to public information, the company will focus on the automobile post-service market, expand the company's main business by means of mergers and acquisitions, cultivate new industries and increase new profit growth points. At present, the company has initiated with Binkai Investment, Zhuolang Technology and Huixin Chuangfu to set up a technology-based SME venture capital fund-Tianjin Fortune Jiaji Investment Partnership (limited partnership), which will be introduced into the Ministry of Science and Technology to guide the fund. in the future, we will mainly invest in advanced manufacturing, electronic information, new materials, high-tech services and other emerging industries. In terms of policy, the CSRC intends to cancel the administrative examination and approval of major asset restructuring in addition to backdoor listing, as well as the addition of M & A funds and other M & A payment and financing instruments for listed companies. This will provide convenience and policy guarantee for the company to smoothly carry out capital operation to expand the company's main business and enhance the company's profitability. 3) the actions of Xinjiang Silicon Valley Paradise continued: Xinjiang Silicon Valley Heaven bought 18.33 million shares of the company from the secondary market on June 25, and signed a three-year "Strategic Consulting and M & An Integration Service Agreement" with Silicon Valley Paradise Group on December 11. On December 24th, the second shareholder, Xinjiang Silicon Valley Heaven, increased its stake in the company by 4.2563 million shares, accounting for more than 5% of the company's cumulative shareholding, and became a related party, which is conducive to closer cooperation between the company and Xinjiang Silicon Valley Paradise in the future. To sum up, we believe that with the strong support of the joint venture capital fund and Silicon Valley Paradise, it is worth looking forward to the future mergers and acquisitions and expansion of the main business around the post-service market in order to achieve great-leap-forward development.
Keep the profit forecast unchanged and maintain the "overweight" rating
We insist on the previous judgment: the gradual stabilization and improvement of the company's main crankshaft business is a high probability event. At the same time, the revision of executive compensation system linked to ROE and market capitalization shows that the company attaches importance to market-oriented management, improve company performance and enhance investor confidence. As a result, the company's performance is expected to stabilize and pick up this year and achieve rapid growth.
We keep our profit forecast unchanged. We estimate that the company's EPS in 2015-17 will be 0.05Compact 0.06Unix 0.07RMB / share respectively, and maintain the "overweight" rating. It is recommended that we continue to pay attention.
Risk tips: factory relocation and injection of "crankshaft production line" into listed companies are lower than expected, mass production of new products and new market development are lower than expected, and cost growth is higher than expected during the period.
