Net profit in 2016 is 28.46 million yuan, EPS0.1 yuan
During the reporting period, the company realized operating income of 360 million yuan, down 14%; net profit of 29.94 million yuan and EPS0.1 yuan, down 57%; in the fourth quarter alone, the company realized revenue of about 130 million yuan, up 79% and 46%; and in the fourth quarter alone, the net profit of the company was 3.04 million yuan, an increase of 268% and a decrease of 70%. And the company suffered a loss of 0-5 million yuan in the first quarter, compared with a profit of 10.77 million yuan in the same period last year. The reasons for the pre-loss in the first quarter are as follows: 1) the large contract is still in the period of construction; 2) the increase in depreciation caused by the commissioning of the new plant.
Sub-products: revenue of interior facade enamel steel plate 190 million yuan, same increase 15%, gross profit 40%, same drop nearly 7%; industrial protection enamel business expansion is not as expected, sales 150 million yuan, same drop 34%, gross profit 21.6%, same drop 12.5%. The sales of enamel board curtain wall is about 4 million yuan, with a drop of nearly 80%, and a gross profit margin of 64%, an increase of about 8%. The lack of expected expansion of the industrial protection enamel market and the rapid decline in product profitability are the main reasons for the sharp decline in the company's performance.
The future remains the same, but patience is still needed.
MGGH is the key component of ultra-low emission of thermal power plant, and the market space is large. In the past 16 years, due to the slower promotion speed of ultra-low emissions in downstream power plants, the company's business expansion has been less than expected, and the increasingly fierce market competition has led to a rapid decline in its product profit margins. The company is firmly determined to promote the development of environmental protection business. With the corrosion resistance of enamel materials, the company has expanded its business to thermal power chimney flue, sewage treatment pool wall system and other fields. With the improvement of downstream enterprises' awareness of enamel materials, the competitive advantage of Kyle products will gradually appear.
Facade enamel material business is the mainstay of the company. Due to the influence of rail crossing and tunnel construction, the sales of interior facade enamel steel plate maintained a steady growth. during the reporting period, the company signed a large order for internal products of 130 million yuan. Enamel board curtain wall is highly accepted abroad, but it is still in the period of market development at home. At present, the company has built a special curtain wall production line with an annual output of 400,000 square meters, and set up a subsidiary, Kyle Decoration, to be responsible for the market development of enamel board products. Members of the core team of Kaier Decoration come from well-known foreign companies and have been employed for more than 10 years. Its excellent market development ability will help Kyle enamel panel curtain wall open the market.
Maintain the overweight rating
Recently, we will focus on the market expansion of the company's enamel board products and MGGH orders. The company is the leader of new enamel materials in China, and its future growth lies in the continuous expansion of the application field of enamel materials market. By the end of 16, the scale of large orders that had not been settled or executed in Kaier was about 226 million yuan. It is estimated that the net profit in 17-19 is 34 million yuan, 46 million yuan and 68 million yuan, and the corresponding EPS is 0.11,0.15,0.22 yuan respectively. Increase the rating.
Risk hint: enamel board curtain wall market promotion is not as expected, industrial protection enamel business continues to decline