Main points of investment
What happened: on October 29th, the company released its third quarterly report that its revenue in the first three quarters of 2016 was 1.999 billion yuan, up 29.19 percent from the same period last year, and its net profit was 152 million yuan, up 124.58 percent from the same period last year. The net profit for the whole year of 2016 is expected to be 1.7-200 million, an increase of 88.12-121.32% over the same period last year, which is basically in line with expectations.
With the help of planting new energy, we will build the whole industry chain of new energy vehicles: the whole vehicle end: the company manages Zhongzhi New Energy, and its Zhongzhi Yichi and Shuchi passenger cars have full orders and contribute profits, under the effect of "refund, repair and rush installation" in the fourth quarter. it is expected to achieve a profit of 300 million yuan, triggering Zhongzhi New Energy vehicle injection Company. Spare parts: the permanent magnet synchronous wheel-side motor independently developed by the subsidiary has a maximum power density of up to 10.4kW/kg and weighs only 12 kg, leading the world in technology; the wheel-side drive system is lightweight, which enables its matching electric bus to achieve low floor, wide channel and increase the number of passengers by 20-30%. At present, the first batch of domestic new energy buses with wheel-side drive produced by Zhongzhi have been mass offline and put into operation. Upstream expansion: on August 17th, the company announced that it intends to cooperate with Guoxuan to rapidly build lithium battery capacity, with a total investment of 3 billion yuan and a total production capacity of 1 billion Ah, of which the first phase invests 1 billion yuan and produces 300 million Ah of power battery per year. Downstream extension: the acquisition of Fujia lease, the introduction of financial leasing, to achieve the transformation from a product provider to an "integrated operation integrated solution provider".
The leading position of traditional refrigeration business is stable, and the market share of condensing pipe is more than 50%: the company is the leading company in the refrigeration pipeline industry, and the market share of refrigerated steel pipe is more than 30%, of which the market share of condensing tube is more than 50%. By setting up molecular companies in the home appliance industry base and around large home appliance manufacturers to provide customers with "zero distance" quality services, the company has established a long-term and stable strategic cooperative relationship with well-known home appliance enterprises such as Haier, Hisense, Midea, Siemens, and professional refrigeration equipment manufacturers such as Emerson. The company is actively promoting the promotion of alloy aluminum materials, actively covering the domestic household, commercial and automotive air-conditioning markets, and rapidly expanding overseas markets such as India, Brazil and North America. strive to complete the transformation from a product supplier to a complete solution provider for air-conditioning aluminum piping.
Investment advice: high-quality products escort, Zhongzhi New Energy injection Company is expected to strengthen, the company is expected to 2016-2018 EPS of 0.18,0.26,0.31 yuan, respectively, the corresponding PE is 55.0,39.2,33.1 times, continue to give "overweight A" rating, 6-month target price of 12 yuan.
Risk hint: policy risk, the promotion of Zhongzhu new energy vehicles is lower than expected, and the market competition intensifies.
