Summary of the report:
Event: the company released its annual report of 813 million in operating revenue, up 1.47% from the same period last year, and net profit belonging to shareholders of listed companies was 40.5 million, down 28.69% from the same period last year. It is proposed to pay a cash dividend of 0.30 yuan for every 10 shares to all shareholders, with an increase of 10 shares for every 10 shares.
The steady development of revenue and the substantial increase in the expense rate have lowered the profit level: in 2016, the company's operating income increased by 1.47% compared with the same period last year, with a steady development, but the return net profit decreased by 28.69% compared with the same period last year, mainly due to the continuous increase in the expense rate and the substantial increase in asset impairment losses. Expenses increased by 32 million, or 21.31%, over the same period last year. As the UAV sector continued to increase investment in research and development and market expansion, the expense rate rose sharply, affecting profits; at the same time, the loss of asset impairment increased by about 11 million over the same period last year, resulting in a decline in profits.
Consumer UAV is scarce, waiting for UAV sales volume: Snow Wright is the scarce consumer UAV target in listed companies, and its subsidiary Manta Intelligence focuses on the research, development, production and sales of consumer UAV. At present, a number of UAV products have been listed, and the S6 market has detonated the market. At present, Manta Intelligent is actively expanding its foreign sales channels, and the market space for consumer-grade UAV is huge. The company's consumer-grade drones are expected to be released this year, contributing to revenue and profits.
Traditional main business development is strong, charging pile business began to contribute income: the company's traditional main business LED lighting, is the leader of the LED industry, the company through fixed increase, continue to increase the main business investment, further optimize the product structure, to achieve LED product types, market coverage, brand optimization and other aspects of improvement, so as to improve the company's overall market competitiveness, is still the company's main profit support. In 2016, Fushun Optoelectronics received 300 million orders for charging piles, and the annual report shows that the charging pile business began to contribute revenue, and the charging pile business has become a new profit growth point for the company with the outbreak of new energy vehicles.
Investment advice and rating: the company's net profit from 2017 to 2019 is expected to be 91 million yuan, 114 million yuan and 129 million yuan, and the EPS is 0.25,0.31,0.35 yuan, with a price-to-earnings ratio of 57 times, 46 times and 40 times respectively. Give a rating of "overweight".
Risk tip: drone sales expansion is lower than expected, and the prosperity of the LED industry continues to decline.