Main points of investment:
The 2016 annual report shows that the company has completed its business restructuring and its performance is expected to be reversed. The company realized operating income of 180 million yuan, down 19.77% from the same period last year, and realized a net profit of 15.43 million yuan belonging to shareholders of listed companies, an increase of 42.10% over the same period last year. The operating income of the digital factory business was 92.033 million yuan, an increase of 15.33% over the same period last year; the operating income of the electrical automation and integration business was 76.1865 million yuan, down 13.26% from the same period last year; and the operating income of the rubber intelligent equipment business was 12.4818 million yuan, down 78.32% from the same period last year. The company has completed the business restructuring, in the international context of Industrial 4.0, based on past experience, 2016 orders are in good condition, and the layout of industrial cleaning business, transformed into a global company.
The industrial chain is reintegrated, and the growth of industrial cleaning business can be guaranteed. After the acquisition of Dur Group, the company is positioned as a global company, which will reintegrate Ecoclean's global factories to create economies of scale, and the net profit is expected to increase to about 50%. In the next 3 years, the company's main performance growth will be industrial cleaning equipment and services, especially in North America and China. Previously, more than 60% of Duer's cleaning business was cleaned in the automobile industry, and the company's performance growth in 17-18 will mainly come from cleaning equipment and services in the domestic automobile industry. There is a large domestic gap in the field of medical devices and electronics, which is also expected to perform. At present, Dur Group has partnered with many well-known automobile manufacturers and has launched operations in seven regions of the country. we think its market share is about 10%, and the market share in China in 17-18 is expected to be 15% and 20%, respectively. then the company's industrial cleaning and surface treatment business is expected to achieve 1.573 billion, 1.991 billion and 2.398 billion revenue in 16-18.
Maintain earnings forecasts and buy ratings. Listed companies have stripped the corridor-related debts to the controlling shareholders, Lanying Intelligence, a wholly-owned subsidiary, has been cancelled, and the cash flow situation has greatly improved. The company's performance has bottomed out in the past 16 years, and the company has been transformed into a global company. Germany's Dur Group is a supplier of machinery and complete equipment with a history of more than 100 years, operating in 28 countries around the world. it has a 60% market share in the global painting system, and its cooperative customers include Tesla, Inc., who entered the Chinese market in 1983. It is estimated that the net profit for 17-18 years is 156 million yuan and 233 million yuan, EPS is 0.58 yuan / 0.86 yuan, corresponding to PE is 24X/16X.
Analogy with German Industrial 4.0 related to the machinery sector companies, the 17-year average PE is 40X, while Ecoclean is the A-share industrial service scarce target, and has global sales and industrial service experience, domestic listed companies are optimistic about their expansion in the Chinese market after acquisition, conservative estimates give the industry average valuation, that is, the 17-year PE is 40X, corresponding to the market capitalization of 6.24 billion, the corresponding stock price is 23 yuan There is 40% room for the current share price, maintain the earnings forecast and maintain the buy rating.
