Events:
The company's operating income in 2016 was 3.751 billion yuan, an increase of 3.99 percent over the same period last year. The net profit attributed to shareholders of listed companies was 23.96 million yuan, an increase of 24.64 percent over the same period last year, and EPS was 0.04 yuan.
Comments:
The company is a domestic refrigeration equipment supplier, the main business can be divided into the traditional core business composed of household appliances such as freezers and refrigerators and the development business composed of commercial cold chain products, air conditioners and vending machines. In 2016, under the downward pressure of the domestic economy, the revenue of the traditional home appliance business reached 2.85 billion yuan, down 0.17 percent from the same period last year. Thanks to the construction of the company's innovation platform and the continuous improvement of R & D investment, the company's revenue from business development reached 820 million yuan, an increase of 51.98% over the same period last year. Non-recurrent profit and loss of 16.58 million is mainly caused by government subsidies for high-tech projects, and this subsidy company has an average annual income of 15 million yuan in three years. At the same time, the company actively implements the "Internet + full cold chain" development strategy, with the smooth landing of the first batch of full cold chain layout projects, and the subsequent cold chain business will be promoted nationwide, which will continue to increase the company's profits.
"Internet + full cold chain" development strategy to promote the transformation and upgrading of the company:
In order to adapt to the development trend of big data and intelligent logistics, the company actively optimizes the product structure, implements the "Internet + full cold chain" development strategy, and strives to create the "three wisdom" projects of intelligent cold chain, intelligent household appliances and intelligent production factory. In 2016, the company successively established two full cold chain specialized subsidiaries, Aucma Vaccine Cold chain and Aucma Intelligence Cold chain. The company has also completed the construction project of intelligent commercial and biological cold chain factory and freezer intelligent manufacturing plant, and the first phase of Henan special refrigerated vehicle project. six cold chain system solutions have been initially formed: Super convenience, kitchen hotel, biomedicine, cold chain transportation, cold storage, fresh self-service and automatic sale. The company has realized the full coverage of the cold chain industry chain, and the upstream and downstream products are expected to play a synergistic and complementary effect in the later stage, bringing about performance growth. At the same time, the company privately raised 746 million yuan for the construction of full cold chain projects and online and offline marketing platforms. The issue price was 7.88 yuan per share, and the subscription amount of the first two major shareholders exceeded 90%, demonstrating the management's confidence in future development. "Internet + full cold chain"
The strategy provides strong support.
Valuation and rating:
We predict that the EPS of the company from 2017 to 2019 will be 0.06,0.11,0.15 yuan respectively, and the target price will be 7 yuan, maintaining the "overweight" rating.
Risk Tips:
The performance of main products such as freezers and refrigerators has declined; the development of all-cold chain business has been less than expected.