Results for the whole of 2016 and the first quarter of 2017 are in line with expectations
In 2016, the company realized operating income of 3.01 billion, an increase of 20% over the same period last year, and a net profit of 340 million, an increase of 530% over the same period last year. Non-homed net profit increased by 648%, in line with expectations. During the reporting period, the downstream demand increased significantly, the price of copper clad laminate showed an upward trend, the subsidiary company Hangzhou Guoji officially produced, the volume and price of copper clad laminate rose simultaneously, and benefited from the effect of price increase, and the company's profitability continued to strength. gross profit margin hit a new high since 2008, a year-on-year increase of 12 percentage points to 23.6%.
In 2017, Q1 achieved revenue of 840 million, an increase of 36% over the same period last year, net profit of 150 million, an increase of 281%, and net profit of non-return increased by 286% over the same period last year. The slight decline in growth compared with the previous year is partly due to the impact of the Spring Festival holiday. Q1 single-quarter gross profit margin increased by 13 percentage points compared with the same period last year, and profitability continued to improve. At the same time, the company expects the good trend at the beginning of the year to continue. The net profit of homing in the first half of the year is 2.6-300 million yuan, an increase of 200%, 250% over the same period last year. The median range corresponds to 130 million of Q2's net profit in a single quarter, an increase of 177% over the same period last year.
The general trend of rising prices of raw materials and copper clad laminates remains unchanged, and prices are expected to continue to rise.
The prices of copper clad laminate and standard foil in April showed a periodic slight correction under the combined influence of the off-season of demand, the fluctuation of raw copper price and the large increase in the previous period, but under the limited supply, driven by the subdivided market demand of downstream automotive electronics, new energy vehicles, communication servers and so on, we believe that the general trend of price increase in the industrial chain has not changed. with the recent lithium copper foil processing fees returning to the momentum of price increase, the superposition industry has gradually entered the peak demand season. The price trend of copper clad laminate is upward.
With the recovery of downstream demand, the company has great flexibility in price increase, and the annual performance is expected to be high.
In recent years, with the rapid development of automotive electronics, new energy vehicles, small spacing LED, high-end servers, small base stations and other high-growth fields, the demand for PCB in many sub-areas downstream has achieved a double-digit annual growth rate, and the PCB industry as a whole has warmed up and entered a new economic cycle, which will substantially boost the demand for copper clad laminates, and the price increase effect of the industrial chain will be conducted smoothly. The company is a medium-thick copper clad laminate leader, with more than 40 million pieces of copper clad laminate production capacity, can flexibly adjust the product structure to maintain a high operating rate, and 82.56 million meters of electronic glass fiber cloth production capacity can further consolidate the advantages of the supply chain, reduce costs and enhance profitability. For small and medium-sized customer groups, the company has strong bargaining power, copper clad laminate price flexibility, the annual performance is expected to benefit from the price increase cycle to achieve high-speed growth. In addition, industry extension exploration such as Great Health is expected to add new profit growth points.
Maintain a "buy" rating
It is estimated that the company's net profit for 2017-2019 is 7.8xpx 1.03max 1.22 billion, eps 1.07 max 1.42max 1.68, and the current share price PE 16max 12max 10X respectively, maintaining a "buy" rating.
