Investment suggestion
We predict that the EPS of the company from 2017 to 2019 is 0.14,0.19 and 0.23 yuan respectively, and the corresponding PE is 51 times, 37 times and 31 times. The company's performance bucked the trend in 2016, with revenue and net profit both growing by more than 30%. The company's cash profit dividend ratio is low, which is mainly used to support the future business development and layout of the company. The company's three-dimensional parking garage revenue of more than 17 million, will become a new profit growth point, active layout of the new energy vehicle industry chain, is expected to share the industry dividend. Cover for the first time and give the company a recommended rating.
Performance against the trend growth, long-term will adhere to the "transformation + upgrade" strategy: the company released the 2016 annual report and announced the profit distribution plan. In 2016, the main business income was 1.239 billion yuan, an increase of 35.14% over the same period last year, and the net profit was 107 million yuan, an increase of 30.91% over the same period last year. During the reporting period, the growth rate of the crane industry slowed down, the price of non-ferrous metals rebounded in the second half of 2016, the aluminum electrolysis industry picked up, and the company signed new orders one after another. At the same time, driven by the "Belt and Road Initiative" policy, the company's port equipment has performed well in overseas markets, successfully winning Dubai Port Machinery and Malaysia and other projects, driving performance growth against the trend. In order to ensure long-term development, the company pays a cash dividend of 0.2 yuan (including tax) to all shareholders for every 10 shares, and uses the capital reserve fund to increase 2 shares for every 10 shares. In the future, the company will be based on traditional products, upgrade to high-end equipment industry, and actively transform to new energy industry.
Three-dimensional parking garage business revenue of more than 17 million, will become a new profit growth point: June 2016, the company and Zhuzhou Tianyuan Security Housing Development and Construction Co., Ltd., Shenzhen Zhongke Liheng Garage equipment Co., Ltd., Zhuzhou Planning and Design Institute initiated the establishment of Hunan Tianqiao Liheng parking equipment Co., Ltd., layout intelligent three-dimensional garage business. Runway Lee Heng has been incorporated into the scope of the merger during the reporting period and achieved revenue of over 17 million. In recent years, the state has issued intensive industrial policies related to three-dimensional garages, and the industry will enter a period of rapid growth. In 2016, Tianqiao Liheng won the tender for Hunan Tianyi Group three-dimensional garage, with about 400 parking spaces, with a total amount of 44.5 million yuan. The company will give full play to the exemplary role and regional advantages of the project, aim at the gap of 30,000 local parking spaces in Zhuzhou, and expand its business from the point and area pole. It is expected that the three-dimensional garage business will become a new profit growth point in the future.
Actively layout the new energy vehicle industry chain, is expected to share the industry outbreak dividend: during the reporting period, the company actively layout the new energy vehicle industry chain to seek new development opportunities. In February 2016, the company jointly launched the Guangzhou Yipo New Energy Industry Equity Investment Partnership (limited partnership) with a total size of 300 million yuan, which will focus on the new energy vehicle power battery manufacturing and equipment industry. Inbor Electric (9.91%), which is owned by the company, is mainly engaged in motor controllers, which has been supplied to Shaanxi Tongjia, Lifan and other vehicle factories. The "Electric car driver Integration" project, which the company cooperates with Inbol, has also entered the prototype testing stage, and the company is expected to continue to lay out the new energy vehicle industry chain and is expected to share the dividends of the industry.
Risk hint: the development of three-dimensional garage business is not as expected; the layout of new energy vehicle industry is not as expected.