Investment suggestion
On March 18, 2017, we forecast that the EPS of the company from 2017 to 2019 is 0.10,0.16 and 0.23 yuan respectively, and the corresponding PE is 330,210and 147times, respectively. The company's 2016 results were in line with expectations, with a slight increase in revenue, a turnaround in the traditional peripheral business, higher-than-expected growth in 3C automation integration business and a loss in the drone business. The company still has the inside knowledge and strength in the computer peripheral business, and has obvious advantages in the 3C automation business, and may continue to promote the company's performance in the future. Maintain the recommended rating.
Main points of investment
The performance was in line with expectations, and revenue increased slightly: in 2016, the company achieved operating income of 574.3808 million yuan, an increase of 14.81% over the same period last year; and the net profit belonging to shareholders of listed companies was 17.9353 million yuan, an increase of 106.91% over the same period last year. In addition to the company's losses in 2015 and a low base, it mainly benefited from the return to profitability of the peripheral business and the improvement of the company's operational efficiency, and the expense rate was reduced.
Gross profit margin fell to 26.32%, compared with 29.95% in the same period last year, mainly due to losses in the drone business. In terms of expenses, the sales expenses were 90.53 million yuan, down 29.13% from the same period last year, mainly due to the reduction in advertising and other market development expenses, and the management expenses were 80.61 million yuan, a decrease of 23.12% over the same period last year, mainly due to the reduction of equity incentive fees in the current period and the exclusion of Lehui World from the scope of merger.
Peripherals warmed up, integration grew faster than expected, and drones lost money: the company's traditional peripheral business began to pick up and turn a profit, with revenue of 498 million yuan, an increase of 28.01% over the same period last year. Relying on the self-developed automatic production system and driven by market demand, the company actively optimizes and adjusts the product structure according to the industry trend, develops cost-leading, highly experienced and personalized products, and establishes differentiation advantages. enhance the competitiveness of the company's products and market share. In addition, the company continues to strengthen the robot optimization business, while maintaining the robot system integration solution output business, begin to develop flexible standardized equipment, gradually establish technical and product barriers, and speed up the process of industrialization. The robot integration business grew faster than expected in 2016, with revenue of 38.09 million yuan, an increase of 221.95 percent over the same period last year. In terms of the drone business, the operation suffered a loss due to the adverse effects of intensified market competition and industry supervision, with revenue of only 32.23 million yuan, down 46.13% from the same period last year, and operating cost reaching 59.84 million yuan.
Computer peripherals still have strength, and 3C automation business has obvious advantages: the company started from the research and development, production and sales of computer peripheral products such as keys and mice, with first-class industrial design and high-quality manufacturing technology, so far, the products have been sold to more than 50 countries and regions around the world, and have formed a complete sales system online and offline, which is profound in the main business of traditional peripherals and still has a very strong strength. In addition, in the face of the huge market space of intelligent manufacturing, the company provides its own more mature solutions as an independent business and transforms into an external professional intelligent manufacturing system solution provider, committed to upgrading and transforming China's traditional manufacturing industry, and promoting it to enter the development of information, intelligence, digitalization and automation as soon as possible. Now it is mainly focused on the 3C industry. Has provided professional services for a number of large 3C manufacturing enterprises. The company benefits from many years of experience in manufacturing automation applications, in-depth understanding of the process process, obvious advantages in 3C automation business.
Risk hint: the drone business continues to be depressed, and the 3C automation business is not as good as expected.