What happened: the company released its first Quarterly report 2015. From January to March 2015, the company's total operating income was 127 million yuan, an increase of 20.79 percent over the same period last year; the net profit attributed to the owner of the parent company was 21.1503 million yuan, an increase of 7.06 percent over the same period last year; and EPS per share was 0.13 yuan.
Comments:
The operation of the company is stable and the interest income is declining. The company's revenue in the first quarter increased by 20.79% compared with the same period last year; the comprehensive gross profit margin of the product remained stable, with a comprehensive gross profit margin of 40.35% in the first quarter, an increase of 0.96 percentage points from the previous quarter, and an increase of 0.94 percentage points over the same period last year. Affected by the decline in interest income, the growth rate of the company's home net profit was lower than the revenue growth rate of the same period, reaching 7.06%.
Sales in North America have improved, and domestic channel companies have increased significantly. As a supporting product of the retail industry, the company's business environment has improved with the economic recovery in Europe and the United States, and sales in North America have increased significantly in the first quarter. On the domestic side, the company's direct channels and agent channels have achieved significant growth, signed a number of agents, and developed from a single product line sales agent to a complete product line promotion agent.
The number of new orders is stable, and the RFID business drives the company's performance growth. In the first quarter, the company's new orders (including those that won the bid but did not sign a contract) totaled 141.9 million yuan. Among them, the new order for EAS business is 108.44 million yuan, and the new order for RFID business is 33.46 million yuan. The new orders for RFID business in 2014 are 80.2 million yuan, and the new orders for RFID business in the first quarter of 2015 are 33.46 million yuan, which can be expected to be better than last year. With the continuous release of wireless RFID capacity, the company's RFID business will grow rapidly.
Profit forecast and investment rating. We forecast that the net profit of shareholders belonging to the parent company from 2015 to 2017 will be 109 million yuan, 134 million yuan and 153 million yuan respectively, and the corresponding earnings per share will be 0.65 yuan, 0.80 yuan and 0.91 yuan respectively.
Risk factors. The economic recovery in Europe and the United States is difficult; the gross profit margin of products is declining; the market development of RFID is not as expected; the company's orders are declining; and the effect of acquisition integration is not as good as expected.