Events:
The semi-annual report for 2014: the total operating income was 85 million yuan, an increase of 12.23% over the same period last year; the net profit attributed to listed companies was 6.2999 million yuan, an increase of 158.40% over the same period last year. The gross profit margins of the company's operating services, vehicle information terminals and accessories business, and software business are 56.09%, 41.38% and 98.32%, respectively.
Summary of the report:
The company continued to dig deep into traditional business areas, and its performance picked up in 2014. The company's traditional business is affected by the state's macro-control of many industries, including real estate, and its performance in 2012 is not very satisfactory. in the past two years, the company has optimized its sales channels and timely adjusted its product strategy to meet the needs of the market, and its performance is gradually picking up. It is estimated that the operating profit in 2014 will reach 26 million yuan, and the main business ratio is expected to increase from 21.83% in 2013 to 30.04% in 2014. The stability of profitability is gradually improving.
Actively expand new areas, or become a new profit growth point. While consolidating the market position of traditional advantages, the company continues to expand its market share in automotive machinery aftermarket, agricultural machinery and other newly added Internet of things applications. In recent years, with the government's attention to agricultural mechanization, subsidies for the purchase of agricultural machinery are also increasing, which is bound to boost the consumption of agricultural machinery, and the market size is expected to reach 456 billion yuan in 2014. the after-market of automobile machinery is expected to have a market size of 200 billion yuan in 2015. The company will copy the business model in the field of construction machinery to the field of agricultural machinery, which will form a new profit growth point.
Profit forecast. We forecast that the operating income of the company in 2014 / 16 is 211 million / 299 million / 452 million yuan, the net profit is 3.279 billion / 4.237 billion / 7.297 billion yuan, and the EPS is 0.20,0.26,0.46 yuan respectively. Give a rating of "overweight".
Risk factors. The risk of raising funds for investment projects that do not meet expectations; market expansion is not up to expectations; management risks caused by M & An investment.