Events:
Jixin Science and Technology released its 2016 annual report. In 2016, the company achieved a total operating income of 1.557 billion yuan, down 12.12% from the same period last year. The net profit of shareholders belonging to the parent company was 117 million yuan, down 8.72% from the same period last year, and basic earnings per share was 0.12 yuan.
Comments:
The performance was affected by the decline in the industry.
The company mainly produces wind turbine wheels, bases, shafts, bearing seats and other castings. In 2016, domestic wind power installation fell by 24%, and the company's operating income fell by 12.12%, which is less than the industry average. The main reason is that the company's foreign sales revenue increased by 26.6%, offsetting the decline in domestic sales.
The gross profit margin of overseas sales is high.
The company's overseas customers are GE, Vestas and other high-quality customers, and the order price is higher, with a gross profit margin of 32.04%, 10 percentage points higher than the gross profit margin of domestic sales, making the company's comprehensive gross profit margin reach 27.21%, up 5 percentage points from the same period last year.
Cost control has achieved remarkable results.
The company's three fees were all reduced, and the sales expenses, management expenses and financial expenses decreased by 37.81%, 3.57% and 28.12% respectively compared with the same period last year. The increase in gross profit margin and the decline in expenses make the decline in the company's net profit less than the decline in revenue.
Layout wind power generation and cultivate profit growth points.
The company has obtained approval documents for a total of 100MW wind farm construction projects, with a planned investment of nearly 900 million yuan. Yanshan Hongrun Wind Power Generation Co., Ltd. is in charge of wind farm development, and wind farm construction will start in 2017. Wind power business will become the profit growth point of the company in the future.
The industry is picking up, and performance growth is expected.
We judge that the wind power industry will pick up this year, and the national installed capacity will increase by more than 18%. The company has strong R & D strength, the main customers are well-known wind power manufacturers at home and abroad, the performance will grow with the recovery of the industry.
Profit forecast and rating. It is estimated that the company's basic earnings per share from 2017 to 2019 are 0.18,0.24,0.33 yuan, and the corresponding price-to-earnings ratio is 28.8,20.9,15.28 times.
Risk hint: the growth of the industry is not as expected, and the abandonment rate is on the rise.
