Main points of investment
Askai released its 2016 annual report: in 2016, the company achieved operating income of 185 million yuan, an increase of 3.30% over the same period last year, and a net profit of 46.6748 million yuan, an increase of 9.05% over the same period last year. The company realized revenue of 35.0983 million yuan in the first quarter of 2017, an increase of 0.71% over the same period last year, and a net profit of 6.276 million yuan, an increase of 6.90% over the same period last year.
The company's CTP sales volume has gradually increased, leading to steady growth in performance. The company's performance growth in 2016 is mainly due to the gradual increase in flexo CTP sales with the maturity of flexo CTP technology and the improvement of market recognition. The number of CTP sales increased from 597 in 2015 to 679 in 2016, an increase of 13.74% over the same period last year. The company's comprehensive sales gross profit margin was 51.77%, an increase of 0.69 percentage points over last year, and the gross profit margin remained at a relatively high level.
Industrial inkjet printheads will be produced in small quantities in the second half of 2017. Industrial inkjet printing can be used in many fields, such as ceramics, packaging, media, printing and dyeing and so on. The industrial inkjet printhead developed by the company has completed a small-scale trial production in the laboratory, and the trial has been well received by overseas customers. The company's industrial inkjet printhead products have entered the preparation and planning stage of large-scale production, and have initially completed the research and development of 3D printing equipment based on industrial inkjet printhead and T-shirt inkjet printer. Small batch production is expected in the second half of 2017.
Profit forecast and valuation: we predict that the company's EPS for 2017-2019 is 0.75 / 1.22 / 1.89 yuan respectively, corresponding to PE 72x/ 44x / 29x, the company's inkjet printhead is expected to break foreign monopoly to achieve import substitution, with a certain valuation premium, and for small market capitalization and high growth companies, give "overweight" rating.
Risk hint; the progress of new product marketing is lower than expected; the risk of intensified market competition.