The company recently released a quarterly report, the first quarter operating income of 373 million yuan (66.96%), return to the mother net profit of 49 million yuan (38.08%), EPS0.07 yuan (16.67%).
Industrial automation grew strongly and its performance doubled in 2016: according to the company's annual report, revenue in 2016 was 1.734 billion (102.12%) and net profit was 277 million (102.46%). The company's business includes industrial automation, power automation, new energy, etc., the first two are the company's main business. In 2016, the company's industrial automation gross profit margin was 40.23% (- 3.77%), revenue was 993 million (134.80%), accounting for 57.28%; power automation gross profit margin was 35.97% (- 7.31%), revenue was 673 million (56.69%), accounting for 38.83%. From a product point of view, the company's main products intelligent manufacturing and robot application products gross profit margin 38.50%, revenue 876 million (107.00%), accounting for 50.50%; electricity distribution and rail transit electrical automation gross profit margin 35.88%, revenue 589 million (60.82%), accounting for 33.96%.
Epitaxial M & An expansion to realize the layout of industrial chain in intelligent field: the company implemented epitaxial M & An expansion in 2016 and successfully acquired 100% stake in Guanzhi Industrial Automation and Huaxiao Precision in the first half of the year. Consolidate the company's market position in the field of industrial production intelligence and robot applications Holding Hangzhou Xinyuhong Machinery (acquisition) and Shanghai Sanqu Intelligent Technology (investment establishment), quickly seizing the health products intelligent manufacturing market, enriching product lines, increasing profit points, investing in the establishment and holding of Anhui University of Science and Technology intelligent logistics system, help the company to realize the industrial layout and business development in the field of industrial production intelligent logistics system. Successfully invested in Shenzhen Lizi Robot to enhance the company's R & D strength in the field of intelligent logistics system. Through epitaxial expansion, the company has realized the layout of the whole industry chain in the field of intelligent industrial production, provided customers with integrated integrated intelligent solutions, and enhanced the company's core competitiveness.
Cut into the field of "artificial intelligence + health", there is great potential for future development: the company announced that on December 27, 2016, the company signed a cooperation agreement with Fudan University on the joint laboratory of intelligent robots in Shanghai. The laboratory will become a medical diagnostic robot, health care consultant robot technology R & D and industrialization base in the future. Promoting the application of service robot in medical treatment, rehabilitation, health and other fields will help to expand and extend the company's intelligent robot business industrial chain. In addition, the company announced in March 2017 that it plans to invest in the construction of intelligent robots and artificial intelligence industrial bases of HKUST, which will be implemented by the company's wholly-owned subsidiary, HKUST Intelligent Robots. The total investment of the project is 1.1 billion yuan, of which 840 million yuan is raised by the company and 260 million yuan is raised by the company. Through the implementation of this project, the company can centrally integrate and manage the intelligent manufacturing business currently distributed in different regions, and further promote the industrial layout of the company in the fields of artificial intelligence, service robots and special robots. to achieve the company's in-depth and rapid development in the field of intelligent industrial production.
Investment suggestion: the net profit of the company from 2017 to 2019 is expected to be 342, 436, 526 million yuan, EPS is 0.47, 0.60, 0.72 yuan, respectively, the corresponding PE is 50-40-33 times. As the leader of the domestic intelligent automation industry, the company actively carries on the industrial chain layout through epitaxial mergers and acquisitions, and now cuts into the field of "artificial intelligence + health" with broad space for development. Continue to give the company a buy-A rating with a 6-month target price of 30.00 yuan.
Risk hint: the progress of industry-university-research cooperation is slow, and the industrial integration is not up to expectations.