Events:
The company achieved an operating income of 811 million yuan in 2016, an increase of 26.47% over the same period last year. The net profit attributed to the parent company was 33.05 million yuan, an increase of 99.41% compared with the same period last year. The company realized operating income of 181 million yuan in the first quarter of 2017, an increase of 115.45% over the same period last year, and realized a net profit of 1.31 million yuan attributable to the parent company, turning a loss into a profit over the same period last year.
Comments:
The substantial increase in the company's profits mainly comes from the consolidation of oil and gas shipments. In 2016, revenue from ice-making complete systems, compressors and central air-conditioning systems accounted for 42.34%, 21.3% and 13.69%, respectively, up or down-3.41%, 42.55% and-1.8% respectively over the same period last year. Compressor business has gradually become the core business of the company's rapid growth. At the same time, after the acquisition of Opcon, the company has mastered the core technology of screw compressors, the double famous brand effect of SRM and RefComp, and the rapid development of the domestic cold chain logistics industry to accelerate the growth of the main business. At the same time, the company acquired 100% equity in Jiayun Oil and Gas to speed up the market development of the compressor business in the field of oil and gas applications. In the past 16 years, the revenue of the oil and gas technical service business and table operation reached 140 million yuan, accounting for 17.48% of the company's total revenue, and the gross profit reached 34.01%. Contribute net profit of more than 30 million yuan.
Layout of hydrogen fuel cell business, there is a broad space for growth in the future:
In October 2015, the company acquired shares in SRM and OES100%, the two core subsidiaries of Opcon, a veteran Swedish fuel cell air system supplier, at a price of no more than 400 million kroner through the M & A fund, and 48.98% of OES subsidiary Fujian Opkang Energy Technology Co., Ltd., to master the core technology of "AUTOROTOR" hydrogen fuel cell twin-screw air circulation system. At the same time, it participates in American CN company and introduces liquid hydrogen production and reserve technology in the upper reaches of the industrial chain. The company also set up a wholly-owned subsidiary of Shanghai Snowman hydrogen Energy Technology to establish a strategic cooperation relationship with Xinyuan Power, focusing on the layout of the whole fuel cell industry chain. With the rapid development of domestic fuel cell industry, we are optimistic that the company will become the main supplier of domestic fuel cell air subsystem in the future.
Valuation and rating: we expect the company's EPS from 2017 to 2019 to be 0.11,0.16,0.19 respectively, giving the target price 12.00 yuan to maintain the "overweight" rating.
Risk Tips:
The fuel cell business is not as good as expected.