Main points of investment:
The net profit of returning to the mother was 3.6038 million yuan in the first quarter of 2017. The company's operating income in the first quarter was 2.832 billion yuan, down 12.25% from the same period last year; operating cost was 286500 yuan, down 9.76% from the same period last year, of which financial expenses decreased 12.20% from the same period last year, mainly due to the issuance of bonds by the company to repay debts. The net profit attributed to shareholders of listed companies was 3.6038 million yuan, down 96.80% from the same period last year, and the investment income was-1.331 million yuan, down 149.07% from the same period last year.
Aluminum intensive processing project has been put into production, and the advantage of the whole industry chain is obvious. The company has formed an integrated industrial chain of "coal-electricity-aluminum-aluminum intensive processing" with aluminum intensive processing as the main body, with an electrolytic aluminum production capacity of 740000 tons, aluminum processing capacity of 750000 tons, coal capacity of 2.55 million tons and carbon production capacity of 150000 tons. The company's annual output of 130000 tons of high-precision aluminum plate and strip cold rolling project and 50, 000 tons of high-performance special aluminum projects mainly produce high-strength and high-toughness alloy medium and heavy plates used in aerospace, petrochemical, transportation and other industries. The related products have won China Classification Society, American Classification Society, British Classification Society, Den norske Classification Society product access certification and TS16949 automobile plate certification, and obtained the EU CE-PED pressure vessel product factory certification certificate. Have the conditions of supply. As the company's aluminum intensive processing project is gradually put into production, it is expected that the production and sales of aluminum intensive processing products will gradually increase in the future.
Definitely increase to enter IDC, the future performance can be expected. The company plans to raise no more than 3.15 billion yuan in the form of non-public offerings to repay interest-bearing liabilities and invest in Henan cloud computing data center projects. It is estimated that the cumulative operating income of the project within 10 years (including the construction period) is 6.273 billion yuan, the cumulative net profit is 2.128 billion yuan, and the payback period of construction investment is 5.48 years (including the construction period), which will effectively improve the profit level of the company. In April 2017, the company's non-public issuance of bonds was listed on the Shanghai Stock Exchange for transfer without objection. From the letter of No objection
Within 12 months from the date of issuance, the company will issue non-public corporate bonds with a total amount of no more than 2 billion yuan to qualified investors in stages, and the funds raised will be used to supplement working capital and repay all kinds of interest-bearing debts of the company, thus greatly alleviating the financial pressure of the company.
Under the double influence of supply side and environmental protection, the price of electrolytic aluminum rebounded, and the self-supporting cost of electric power can be controlled. Under the dual influence of supply-side and environmental protection policies, aluminum prices as a whole showed a fluctuating upward trend in 2016, and the oversupply situation improved significantly. More than 94% of the electricity needed for the production of the company's main part is purchased from the subsidiary Zhongfu Electric Power, and the installed capacity of thermal power units is 900000 kilowatts. Linfeng Aluminium Power, a subsidiary, has become a pilot unit of direct power supply since September 2013, and the cost of electricity consumption has been continuously reduced. The industry is picking up, the cost is controllable, and the future performance can be expected.
Profit forecast and rating. In recent years, the company continues to expand into the field of aluminum processing, and plans to increase the way to enter the IDC market, to increase new profit growth points. Therefore, we estimate that the EPS in 2017-2019 is 0.23,0.31 and 0.41 yuan respectively. Taking into account the average valuation level of the industry, it is given a valuation of 30 times in 2017, with a target price of 6.9 yuan.
Uncertainty analysis. Aluminum price fluctuation risk; fixed increase transaction risk; market risk and so on.