Revenue growth gross profit margin rebounded, profitability rebounded across the board
The company released its 2016 annual report, with operating revenue of 1.78 billion, an increase of 22% over the same period last year, and a net profit of 76.46 million, an increase of 79% over the same period last year. The company's gross profit margin continued to rise, with a gross profit margin of 26% for the whole of 2016, an increase of 2 percentage points over the same period last year, mainly due to the company's active cost control through supply chain management and product structure optimization.
The main business of distribution network bottomed out and rebounded, actively expanding customers outside the system.
During the 13th five-year Plan period, the investment in the construction and transformation of the distribution network will reach 1.7 trillion yuan, effectively driving the growth of the demand for distribution network equipment. The company is a first-line supplier of primary and secondary equipment in the distribution network, with 2.152 billion new contracts signed in 2016, an increase of 11.62% over the same period last year. The winning rate of the company's participation in the bidding of the two networks continues to improve, and the company actively develops the out-of-system market, with the completion of user engineering contracts totaling 265 million yuan in the whole year, an increase of 130% over the same period last year.
Product structure adjustment + extension expansion, emerging business to create a new engine of performance growth
The company's power electronics business layout tram supercapacitors and DC distribution network products, gross profit margin as high as 46%. With the successful operation of the Guangzhou tram project and the delivery of the Wuhan project, the brand effect will help the company to continue to obtain orders related to supercapacitors, and power electronics is expected to become a new growth point of performance in the future. The company has joined hands with bumper year Capital to enter the field of military power systems with high gross margin, and related projects are expected to be launched this year, which will further enhance the company's performance.
Actively participate in incremental distribution network operation and build an integrated energy management service provider
At the end of 2016, the state announced 105 pilot projects for incremental distribution networks to encourage social capital to participate in the construction and operation of incremental distribution networks. The company participates in Gui'an Distribution Power Company, accumulates experience in distribution network operation and management, signs strategic contract agreement with Zhengzhou Airport to participate in power distribution business, and establishes a joint venture company with Anhui Bengbu Development Zone Management Committee to participate in distribution network operation. related business will become a new focus of the company's future growth. The company continues to deepen the layout of national power consumption services and equipment operation and maintenance, supplement the technical capabilities of power design and micro-energy network platform, and develop comprehensive energy management relying on the advantages of equipment suppliers.
Be optimistic about the long-term development of the company and maintain the company's "buy" rating.
We estimate that the company's EPS from 2017 to 2019 will be 0.43,0.57,0.73 yuan respectively, maintaining the company's target price of 27 yuan, corresponding to the 17-year 63 times PE level, and maintaining the company's "buy" rating.
Risk Tips:
The investment in the construction and transformation of the distribution network is not up to expectations, and the promotion speed of the incremental distribution network project is not up to expectations.