Main points of investment:
Events: the company released its 2015 annual report on March 30, with operating income of 1.127 billion yuan for the whole year, down 8.57% from the same period last year; net profit belonging to the owner of the parent company-57.9543 million yuan, down 189.63% from the same period last year; and basic earnings per share-0.14 yuan, down 182.35% from the same period last year.
Comments:
The gross profit margin of income has declined. The company's main business is rare earth permanent magnet materials and products, motor series, logistics and fire intelligent equipment. In 2015, due to the influence of the economic environment at home and abroad, the market demand for NdFeB magnetic materials was sluggish, the sales price of products decreased compared with the same period last year, and the gross profit margin decreased; the revenue of logistics and fire control intelligent equipment decreased due to the reduction of projects completed in the current period. fixed fees relatively increased, gross profit margin decreased; motor series due to strong research and development efforts, products to meet market demand, to maintain strong profitability.
Lianyi Motor has a positive impact on the company's operation and performance. During the reporting period, the company issued shares to purchase assets to purchase 100% equity of Lianyi Motor, increasing the related business and products of Lianyi Motor. During the reporting period, the company achieved an operating income of 454 million yuan and a net profit of 75.3199 million yuan, which had a positive impact on the company's operation and performance.
Financial costs have fallen sharply, while the other two have increased. During the reporting period, the company's sales expenses were 45.703 million yuan, an increase of 20.61% over the same period last year; management expenses were 171 million yuan, an increase of 18.54% over the same period last year, mainly due to the increase in incentives for Kowloon Motor bus's over-performance commitment; and the financial expenses were 9.149 million yuan, down 86.16% from the same period last year. The main reasons are: the reduction of the principal of the current short-term loan and the reduction of bank interest rates make the bank interest expenses lower. Due to changes in the exchange rate, the exchange earnings formed by export settlement increased; the bill was not discounted in the current period, which was less than that in the same period last year.
Through asset reorganization to create a new industrial ecology of "components + equipment + engineering". In 2015, through a series of acquisitions and restructuring, the company emphasizes business coordination and has formed a product series of rare earth magnets, electric motor control and intelligent logistics equipment through resource allocation. The company will strive to create a precision manufacturing industry platform of "control technology + motor", and build an industrial ecology of "components + equipment + engineering" through system integration. Vigorously develop new energy vehicle drive systems, medical rehabilitation electric wheelchairs, fire robots and fire control simulation training systems and intelligent factory systems and other business areas.
Maintain the company's "buy" rating. Combined with the progress of the company's project production, we estimate that the company's EPS from 2016 to 2018 will be 0.26,0.38 and 0.44 yuan respectively, and will be given 65 times PE in 2016, corresponding to the target price of 17.01 yuan, maintaining the "buy" rating.
Uncertainty. Price fluctuation risk; policy risk; exchange rate risk; production risk of fund-raising projects.