Event: the company released its annual report in 2016, and the company's operating income from January to December 2016 was 4.561 billion yuan, an increase of 0.79% over the same period last year. The net profit belonging to shareholders of listed companies was 291 million yuan, down 23.64% from the same period last year. Basic earnings per share was 0.25 yuan, down 23.64 percent from the same period last year.
The two traditional main industries of motorcycle engine and general machinery have maintained steady development. The company is a leading manufacturer of small compact power products integrating motorcycle engines, general gasoline engines and general machinery. In 2016, under the condition that the motorcycle industry remained in the doldrums and the total vehicle production and sales hit a record low, the company continued to step up its R & D and transformation of new products such as high emission and electric power, and ensured the stability of sales through efforts to expand overseas emerging markets such as Africa. In 2016, Zongshen engine Company achieved sales revenue of 2.758 billion yuan, an increase of 4.59 percent over the same period last year; product sales of 3.35 million units, an increase of 9.73 percent over the same period last year, of which sales of large-displacement fuel engines increased by 10.56 percent. In general machinery manufacturing business, the company achieved operating income of 1.05 billion yuan in 2016, down 20.33% from the same period last year. The stable development of the traditional main business has laid a solid foundation for the company's transformation and upgrading to emerging industries.
The layout of new business such as aviation power, new energy, auto parts and so on continues to advance. In 2016, through strategic cooperation with the 11th Aerospace Academy, the company completed its investment and equity participation in Aerospace Shenzhou aircraft Co., Ltd., and established Zongshen Aeroengine Company to produce power products for drones and navigable aircraft. Moreover, through a joint venture to set up Zongshen hydrogen Energy Company, invest in Canada's ELIX Wireless charging system Company, and jointly develop snow-sweeping robots in Chongqing University, the company continues to increase its R & D investment in cutting-edge technologies such as fuel cell technology and wireless charging technology. In addition, Zongshen Auto parts Company, newly established by the company, has entered the purchasing catalogue of large vehicle enterprises at home and abroad, and has now realized 462 million yuan in sales revenue of cylinder blocks, boxes and other parts, and is expected to maintain a trend of rapid development in the future. contribute more performance increments to the company.
Profit forecast and investment rating: the company's net profit from 2017 to 2019 is expected to be about 310 million yuan, 370 million yuan, 422 million yuan, EPS is 0.27,0.32,0.37 yuan, corresponding to PE is 33 times, 27 times, 24 times, given a "buy" rating.