A big increase in performance in the first quarter

The company issued a forecast of its results for the first quarter of 2017. During the reporting period, its net profit was 6895.61-73.5531 million yuan, up 50% and 60% over the same period. In the first quarter of 2017, the market demand for computerized flat knitting machines in the company picked up, and the company's operating income increased significantly compared with the same period last year. In addition, the mobile Internet business invested by the company in mergers and acquisitions was incorporated into the financial statements, and the net profit belonging to shareholders of listed companies increased significantly compared with the same period last year.

two。 The market demand of computerized flat knitting machine is picking up, which is expected to increase by 40-50% in 17 years.

The new round of update demand led to a higher-than-expected increase in orders for computerized flat knitting machines. The natural renewal life of computerized flat knitting machine is 8-10 years. At present, there is 50-600000 stock in the market. China's computerized flat knitting machine market is growing rapidly in 2008-2011, and the natural renewal cycle is 2016-2019. In 2016, the company's knitting machinery business revenue increased by about 38% over the same period last year, and is expected to reach 40-50% growth in 17 years.

The market of shoe upper machine broke out. Under the background of the popular trend of flying weaving shoes and the upgrading of consumption, more and more second-line sports shoes brands begin to promote full knitted uppers, driving the explosive growth of the company's vamp machines. From the perspective of downstream products, the main products of the major brands this spring are all flying weaving shoes, and the market of flying weaving shoes will be further expanded.

Overseas exports increased further. The company exported 3000 computerized flat knitting machines last year and is expected to make a breakthrough this year. The company's exports are mainly aimed at Bangladesh, accounting for 60% last year. Bangladesh has a large number of hand machines, and there is a lot of room for upgrading and replacement in the future.

3. The robot business is expected to make a profit this year, and the mobile Internet business has completed the promised performance. The operating income of the mobile Internet and robot business in 2016 is about 160 million yuan, and the performance is basically in line with expectations. The mobile Internet and robot business is expected to contribute 135 million yuan in net profit in 2017. Among them, the company holding robot automation companies Dongguan Zhongtian and Suzhou Dingna are currently running smoothly with full orders, and are expected to contribute about 20 million of their performance this year. It is expected that most of the Internet companies acquired last year will fulfill their promised performance with Lok and YouTou technology, contributing profits of 105 million yuan and 150 million yuan respectively this year and next year.

4. Investment advice:

The company is expected to achieve net profit of 130 million, 330 million, 427 million in 16-18 years, corresponding to EPS0.16, 0.41,0.53, and PE69X, 27x, 21X, which are highly recommended.

5. Risk Tips:

The expansion of robotics and Internet business is not as expected.