(1) the rapid growth of revenue is mainly due to the extension of the table and the sales of new products.
2015 the increase in operating income of the company is mainly due to the increase in sales revenue of new holding subsidiaries and endogenous new products. 1) the company controlled 51% of Tangdi Information through epitaxy in 2014 and acquired 55% of Beichende in 2015. The 2015 annual report combines the annual results of Tangdi Information and some of the results of Beichende. The performance commitment of Tangdi information in 2015 is 22 million yuan, Beichende is 37.5 million yuan; the actual performance of Tangdi information is 25.2169 million yuan in 2015, Beichende is 39.0155 million yuan. 2) from the point of view of sub-products, binding equipment, binding equipment, self-service series, software development services and sales increased by 0.14%, 13.71%, 90.95%, 193.07% and 76.58% respectively compared with the same period last year. The main reason for the growth of independent series equipment is that the company completed the acquisition of Beichengde Technology, the merger scope increased, and the company increased the promotion and sales of self-help series products. The production, sales and inventory of self-help series products have increased significantly in this issue. Software development services and sales are mainly derived from the year-round consolidation of Tangdi information software business and Beichengde software business; the growth of other products is mainly due to the issuance of the new version of RMB and the substantial increase in sales of other products such as banknote counters. The forecast results for the first quarter of 2016 are within the normal range. Beichen Debo and the company's traditional business belong to the same industry, both of which are seasonal. The first quarter is the off-season of sales, and some products have not yet been collected.
(2) the growth rate of expenses is controllable and the gross profit margin is expected to stabilize.
During the reporting period, sales expenses, administrative expenses and financial expenses increased by 59.96%, 122.78% and 627.86% respectively compared with the same period last year. Among them, the main reason for the increase in sales expenses is the increase in the scope of the company's consolidated statements such as Tangdi Information and Beichengde, as well as the increase in after-sales service charges for increased sales. The increase in management expenses is mainly due to the increase in the scope of merger and the strengthening of research and development by the company. The investment in R & D in 2015 was 39370964.28 yuan, an increase of 120.38% over the same period last year, accounting for 7.74% of operating income. In 2014, R & D expenses accounted for 5.86% of operating income. The reason for the increase in financial expenses is the increase in loan interest caused by bank borrowing.
We believe that the year-on-year growth of the company's sales expenses relative to the growth of revenue is within a controllable range; the growth of management expenses is expected to stabilize with the completion of new product research and development; in terms of financial expenses, the company has announced additional projects in the early stage, some of which will supplement their own working capital, which is currently in the approval process, and it is expected that the growth of financial expenses will ease in the future.
The gross profit margin of the company's products as a whole was 46.25% in 2015, compared with 44.36% in 2014. The increase in the overall gross profit margin of the product is mainly due to the increase in the gross profit margin of the independent product line. In the statistics of industries, products or regions that account for more than 10% of the company's operating revenue or operating profit, the gross profit margin of bundling equipment decreased by 3.91% year-on-year, the gross profit margin of self-help series increased by 7.83% year-on-year, and the gross profit margin of software development services and sales was 9.22%. We believe that despite the decline in traditional products, as the company's new products continue to appear on the market, the gross profit margin is relatively high, forming an effective offset, and the future gross profit margin is expected to remain between 44% and 50%.
(3) Endogenous and epitaxial-driven, which is expected to promote rapid performance growth.
The company adheres to the strategic orientation of "high-end manufacturing" and "Internet finance". Through independent development and capital mergers and acquisitions, the company will gradually build the company into an innovative high-tech enterprise with the integration of software and hardware for independent research and development, production, sales and service. transform to a "bank overall solution provider".
In 2015, the company invested in the research and application project of cash logistics management technology and the development project of counter cash business automation equipment. The products of the miniature Cash processing Center completed functional acceptance at the end of 2015, and passed the appraisal of scientific and technological achievements in Hebei Province, and the appraisal result was the leading in China; in 2015, the research and development of two kinds of equipment of multi-coupon fast deposit machine and teller deposit and withdrawal circulation machine had been completed, and had entered the stage of small batch production and sales, the two products had respectively passed the appraisal of scientific and technological achievements in Hebei Province at the end of 2015, and the appraisal results were the leading in China.
We believe that the company's strategic positioning goal is clear, optimistic about the future layout of the company's business, through strategic extension and endogenous new products two-wheel drive, is expected to promote the company's sustained and rapid growth.
3. Investment advice.
The rapid growth of revenue is mainly due to extension consolidation and new product sales; the growth rate of expenses is controllable and gross profit margin is expected to stabilize; and endogenous and epitaxial drivers are expected to promote rapid performance growth. It is estimated that the company's EPS in 16-18 will be 0.45,0.68 and 0.97 yuan respectively, maintaining the "recommended" rating.
4. Risk hint.
Business progress fell short of expectations; competition intensified.
