Main points of investment
Tianqiao Crane released its 2016 annual report: the company's operating income in 2016 was 1.237 billion yuan, an increase of 34.96% over the same period last year; the net profit belonging to shareholders of listed companies was 107 million yuan, an increase of 31.18% over the same period last year, corresponding to an EPS of 0.13 yuan.
The crane business is growing at a high speed, and the distribution of new energy is gradually improved. The company achieved business income of 1.239 billion yuan in 2016, an increase of 35.14% over the same period last year. The company's income from material handling equipment and accessories was 1.024 billion yuan, wind power equipment was 102 million yuan, coal preparation machinery was 21 million yuan, and non-ferrous equipment and other income was 92 million yuan, up 39.38%, 10.66%, 0.12% and 96.62% respectively over the same period last year. In the case of the continuous downturn in the lifting equipment manufacturing market and the further narrowing of product profit margins, the company completed the new industrial layout, used super-raised funds to invest in overpass Liheng, and entered the field of three-dimensional parking equipment. At the same time, lay out the new energy vehicle industry chain, participate in Inbor, enter the field of lithium battery equipment, and seek diversified development opportunities.
The effect of cost control is good, and the rates of sales expenses and management expenses have decreased. The company's sales expense rate and management expense rate in 2016 were 4.3% and 10.4% respectively, down 0.2 percentage points from the same period last year, indicating the company's good ability to control expenses.
The strategic development idea of "one body and two wings" is based on the high-end intelligent equipment manufacturing industry to promote the transformation and upgrading of enterprises. In February 2016, the company and professional institutions initiated the establishment of Guangzhou Yipo New Energy Industry Equity Investment Partnership with a total size of 300 million yuan, focusing on the new energy vehicle power battery manufacturing equipment industry; in June 2016, the company and Shenzhen Zhongke Liheng initiated the establishment of Hunan Tianqiao Liheng parking equipment Co., Ltd., layout intelligent three-dimensional garage industry. The company has accelerated the pace of transformation and upgrading by working with professional teams to lay out new industrial growth poles.
Earnings forecast and rating: we expect the company's EPS for 2017-2019 to be 0.21, 0.25, 0.29, respectively, maintaining a "buy" rating.
Risk tips: 1) fixed asset investment in the metallurgical industry continues to decline substantially; 2) business integration risk.