Jiawei shares issued a performance forecast, which is expected to achieve a net profit of 1.98-210 million yuan attributed to the parent company in the first three quarters, an increase of 371.56%-400.14% over the same period last year, corresponding to an EPS of 0.42-0.44 yuan. Of this total, the net profit in the third quarter was 0.76-88 million yuan, an increase of 55.99 percent over the same period last year.
At the same time, the company recently announced that it intends to jointly invest in the establishment of Rugao Weilong solid Energy Storage Technology Co., Ltd., of which the company invests 85 million yuan and holds 85% of the shares.
Invest in the field of solid-state lithium electricity and lay out the big market of electric vehicles and energy storage. Since 2014, the company has actively promoted business transformation, and has accelerated its entry into the photovoltaic field through the acquisition of Huayuan New Energy and Jinchang Guoyuan. The company's investment in the establishment of Rugaojia Weilong solid State Energy Storage Technology Co., Ltd. to enter the power lithium electricity, energy storage and other major markets, will further improve the company's new energy field layout, and form good coordination with the existing graphene business to drive performance growth. Compared with the traditional lithium battery, the solid lithium battery replaces the traditional electrolyte with the solid electrolyte to solve the safety problem that the traditional lithium battery will spontaneously ignite and explode due to high temperature. At the same time, solid-state lithium batteries have higher energy density to meet the needs of corresponding electrical equipment in the future and comply with the national goal of energy density of lithium batteries. We believe that in the later stage, with the maturity and improvement of relevant technology, the company will fully grasp the technical high point of solid-state lithium electricity and realize the volume growth of lithium power business.
The strategy of photovoltaic power station has achieved remarkable results, and the performance continues to maintain high growth. The company's photovoltaic business strategy is clear, through the double main line of power station development and operation, to achieve business scale expansion: 1) through the acquisition of Zhenfa New Energy Huayuan New Energy, the company quickly cut into the field of power plant EPC. Huayuan New Energy promises a net profit of not less than 3.35 yuan and 366 million yuan in 2016 and 2017. 2) set up Jiawei (Shanghai) Power Company to expand the scale of the power plant with the mode of acquisition and self-construction. After the completion of the acquisition of Jinchang Guoyuan this year, there is already a grid-connected photovoltaic power station about 350MW, which will continue to further promote scale expansion in the later stage. The transformation photovoltaic strategy drives the company's performance to grow rapidly, with a net profit of 1.98-210 million yuan in the first three quarters, an increase of 371400% over the same period last year. The net profit in the third quarter is 0.76-88 million, and the month-on-month growth is-0.26%. The traditional business remains stable, and the layout of smart homes is expected to break out in the later period. The company's traditional LED lamp business is stable and maintains a small profit level. On the basis of the original industry, the company focuses on developing intelligent security wall lamps, cutting into the field of smart home, making use of the company's channel advantages, focusing on developing overseas markets such as North America. At present, the company's intelligent security wall lamp has completed trial marketing and promotion in North America, and the market response is good. At the same time, with the intelligent security wall lamp as the breakthrough, the company further promotes the intelligent home lighting projects such as high-end Bluetooth intelligent control audio low-voltage lights, and improves the layout of the smart home industry chain.
Maintain the buy rating. It is estimated that the company's EPS in 2016 and 2017 will be 0.86 yuan and 1.17 yuan respectively, corresponding to 45 and 33 times PE, maintaining the buy rating.
Risk hint: photovoltaic business promotion is lower than expected