Main points of investment:
Revenue in the first quarter of 2017 increased by 66.96% over the same period last year, and net profit from home increased by 38.08% over the same period last year. In the first quarter of 2017, the company achieved revenue of 373 million yuan, an increase of 66.96% over the same period last year, a net profit of 48.53 million yuan, an increase of 38.08% over the same period last year, and a non-net profit of 37.12 million yuan, an increase of 11.12% over the same period last year. The comprehensive gross profit margin was 38.19%, down 5.62pct from the same period last year; the expense rate during the period was 25.15%, an increase of 1.13pct over the same period.
From Crown to Huaxing and other factors promote the rapid growth of revenue. The company's rapid revenue growth is mainly due to: 1) consolidation factors, the company completed the acquisition of Guanzhi Automation and Huaxiao Precision in 16 years, and began to merge in May; 2) the main business expansion is smooth. The lower growth rate of net profit than revenue is mainly due to the decline in gross profit margin & the increase in expense rate during the period.
The smart manufacturing sector has a bright future. 1) Yongqian Mechatronics: the leader of domestic intelligent manipulators, the growth in the next few years will mainly come from business expansion outside the automotive industry, such as electrical equipment, lithium batteries, military industry, diapers, etc., as well as the company's promotion in high-end products, in-depth production lines and special aircraft product development. 2) Crown to: Shanghai Volkswagen A-class suppliers, customers' continuous breakthroughs have brought business increment. In 16 years, the company broke through Changan Ford, Geely and other mainstream domestic car companies, and in 17 years, it is expected to break through GM, FAW-Volkswagen, etc.; in addition, the company is expected to gradually land on the ground from the side welding production line to the floor, door cover, total assembly field. 3) Huaxiao: AGV mainstream enterprises, on the one hand, business expansion comes from the expansion of customers brought about by cooperation with Guanzhi and Huaxiao, such as Jianghuai, Chery, Geely, etc.; on the other hand, the company is expected to gradually make breakthroughs in electronics, power, machinery and other industries in the future.
The layout of "artificial intelligence + health" is of strategic significance. In his 2017 government work report, the prime minister pointed out the need to speed up the cultivation of emerging industries, including artificial intelligence, which is also the first time that artificial intelligence has been included in the work report. In March, 17, the company invested 1.1 billion yuan to build the intelligent robot and artificial intelligence industrial base of HKUST, and the strategic layout of "artificial intelligence + health" and other fields. The company has previously established a cooperative relationship with the Institute of brain Intelligence Science and Technology of Fudan University to study medical diagnosis robots and health care consultant robots to promote the application of artificial intelligence in the field of medical rehabilitation. The layout of artificial intelligence of the company is of great strategic significance, and the landing of project industrialization in the future is expected to bring great impetus to growth.
Profit forecast and investment advice. It is estimated that the company's operating income from 2017 to 2018 will reach 2.138 billion yuan and 2.555 billion yuan, and its net profit will reach 350 million yuan and 436 million yuan, an increase of 26.61% and 24.42% respectively over the same period last year. The earnings per share are 0.48 yuan and 0.60 yuan. Give a valuation of 60 times in 2017, corresponding to a price of 28.87 yuan per share, and increase the rating.
Risk factors. The risk of industrial integration falling short of expectations.