Revenue and net profit rose both in 16 years
According to the 2016 annual report, during the reporting period, the company achieved an operating income of 772.7343 million yuan, an increase of 82.45 percent over the previous year, and an operating profit of 46.8648 million yuan, with a total profit of 132.2639 million yuan, an increase of 60.95 percent over the previous year. The net profit belonging to the owners of listed companies was 121.7654 million yuan, an increase of 74.78 percent over the previous year.
The synergy effect of the great increase in performance in the fourth quarter is gradually reflected.
From the perspective of a single quarter, revenue and operating profit increased rapidly in the fourth quarter, rising 306.42% and 256.76% respectively from the previous quarter, on the one hand, due to the company's own upward performance, and on the other hand, due to the fact that Germany began to consolidate its wealth and made a profit. From the perspective of product structure, due to the consolidation of wealth in Germany, revenue in the railway sector has increased by 81.27%, but at the same time, due to the relatively low profit margins of products such as catenary, the overall gross profit margin in the railway sector has been lowered. Kaifa's own railway power supply automation and power supply dispatching automation products still maintain a high profit margin. In addition, the revenue of Kaifa's urban rail transit products grew rapidly, with revenue increasing by 83.14% compared with the same period last year, of which the gross profit margin of the rail transit integrated monitoring system increased by 15.7% compared with the same period last year, while the security system decreased by 5.47%.
During the 13th five-year Plan period, the speed increase of rail transit construction by the end of 2016, the company's contract amount in execution was 1.9090092 billion yuan, of which 1.0537126 billion yuan was executed in China and 855.2966 million yuan abroad, an increase of 114.49% over the same period last year, fully ensuring the company's performance growth in the next two years. During the 12th five-year Plan period, China invested a total of 1.23 trillion yuan in urban railways, and according to the plan of the National Development and Reform Commission, the scale of fixed assets investment in railways will reach 3.5 to 3.8 trillion yuan during the 13th five-year Plan period, of which about 3 trillion yuan will be invested in capital construction and 30, 000 kilometers of new lines will be constructed. compared with the 12th five-year Plan period, the investment and construction scale increased significantly!
Profit Forecast and Investment rating
We are optimistic about the development concept of the company's primary and secondary equipment and the development opportunities of the rail transit industry. It is estimated that the company's EPS from 2017 to 2019 will be 0.50,0.56,0.70 yuan per share respectively.
Risk hint: rail transit investment and construction are not up to expectations, and the progress of German wealth protection business is lower than expected.
