The company released its 2016 annual report and 2017 quarterly report: the company's operating income in 2016 was 430 million yuan, an increase of 33.88 percent over the same period last year; the net profit belonging to shareholders of listed companies was 55.744 million yuan, an increase of 22.68 percent over the same period last year, corresponding to an EPS of 0.12 yuan. In the first quarter of 2017, the company achieved an operating income of 117 million yuan, an increase of 35.66% over the same period last year, and a net profit of 17.6038 million yuan belonging to shareholders of listed companies, an increase of 21.00% over the same period last year.
Epitaxial acquisitions strengthen the layout of environmental protection, food safety and medical areas, profit and contribute to performance growth. Since 2015, the company has acquired four subsidiaries in cash, accelerating the industrial layout in the fields of environmental protection, food safety and life science through epitaxial mergers and acquisitions: horizontally, the company has moved from inorganic testing to organic testing, and further into the field of biomolecule (life science) testing; vertically, the company extends from testing instruments to downstream testing services, including environmental protection and medical third-party testing. Through epitaxial mergers and acquisitions, we have entered the fast-growing industries such as VOCs online monitoring and POCT in vitro diagnostics. The exam preparation performance of the four acquired companies reached 63.84 million yuan and 84.05 million yuan respectively in 17 and 18 years, and the company will enter the high-speed growth channel in 2017.
For small companies in hundreds of billions of markets, there is a broad market space in the field of food safety and environmental protection testing. Estimate the 13th five-year Plan
The market space of environmental testing equipment reaches 101.4 billion yuan. The market space of medical mass spectrometer is about 36.8 billion yuan, and the demand scale of testing equipment of new grain quality inspection institutions from 2017 to 2019 is 6 billion yuan. The company has invested nearly 270 million in R & D since 2010. we judge that with policy catalysis, the company's R & D achievements in food safety, environmental testing and other fields are about to enter the harvest period.
The field of food security has entered the harvest period, bringing significant performance flexibility. The State Grain Administration issued a notice on the implementation of the "High quality Grain Project" and improved the grain quality and safety inspection and monitoring system. The 13th five-year Plan is planned to establish and improve a grain quality and safety inspection and monitoring system composed of 5 national, 32 provincial, 305 municipal and 960 county-level grain quality inspection institutions. The annual demand for new equipment is about 2 billion yuan, and the construction of food security inspection institutions is accelerated. Bring a new round of opportunities for the company's traditional main business.
Valuation and rating: optimistic about the medium-and long-term growth trend of the inspection and testing industry, and the acceleration of the construction of food security testing center, bringing a new opportunity period for the company's traditional main business. It is estimated that the company's EPS from 2017 to 2019 will be 0.26 EPS 0.33 PE 0.43 yuan respectively, corresponding to 36x/28x/21x, respectively, maintaining the "overweight" rating.
Risk hint: the promotion of environmental protection and food safety policies is lower than expected.