Events:
On February 20, 2017, the company announced its results, KuaiBao, with revenue of 367 million yuan in 2016, down 2.39% from the same period last year, and net profit of 9.81 million yuan, down 15.48% from the same period last year.
In addition, the company issued an announcement, as it was carefully judged that the number of shares involved in the non-public offering did not meet the requirements of the new refinancing rules that "the number of shares to be issued shall not exceed 20% of the total share capital before this issue." the company decided to terminate the major event of the plan and resume trading.
Conclusion:
1. the performance has declined slightly, and the main business is expected to improve this year.
The company is a leading enterprise in metallurgical shaft coupling subdivision industry, the main products include universal shaft coupling, drum tooth coupling, shear blade and other steel rolling equipment parts, as well as precision reel, composite skateboard and automobile transmission shaft. Except for the automobile transmission shaft, the other products are used in the iron and steel industry, and the main customers include large enterprises such as CFHI, Shougang, Angang, Baotou Steel, Jigang and so on. In 2015, the company's universal couplings, drum tooth couplings and precision reels accounted for 40.24%, 27.63% and 13.63% respectively.
The company's receivables have increased sharply in recent years, reaching 547 million yuan as of the third quarter of 2016. Benefiting from the improved profitability of steel companies in 2016, we expect the company's receivables to improve significantly this year, while strong steel demand will lead to equipment upgrading and investment, which will also be conducive to the recovery of the company's main business.
2. The attempt to reorganize has failed for three consecutive years, and the transformation is still on the way.
Only four months after the termination of the last acquisition of Longyu Electronics, the company once again suspended trading and restructuring. On February 17, the China Securities Regulatory Commission issued new refinancing rules, and the company judged that the restructuring did not meet the requirements of the new rules, and the restructuring was terminated again.
In fact, the company continues to promote the strategic layout of intelligent manufacturing. In 2015, the company signed a strategic cooperation agreement with the National Remanufacturing Center to establish a metallurgical remanufacturing technology research center, and signed an overseas strategic cooperation framework agreement with Sinosteel equipment. In conjunction with Maanshan Economic and technological Development Zone, set up Maanshan Taier Intelligent Industrial Park, introduce Zhentai Intelligent and Ruicong Robot projects into the park, and participate in the establishment of Aerospace Zijin military-civilian Integration Industry Investment Fund. Layout industry 4.0, military industry and other industrial intelligence industries. In addition, the major shareholder Investment Company controls the Nanjing Research Institute of increased Materials Manufacturing, with Professor Lu Bingheng, academician of the Chinese Academy of Engineering, as president, striving to create the strongest research base in the field of increased materials manufacturing in China. However, these businesses are still in the period of development and can not contribute to performance, and the company is still on its way to transform intelligent manufacturing.
3. Profit forecast and investment advice
We expect the company's 2017 net profit to be 20 million and 30 million respectively, corresponding to 224 times and 150 times PE respectively, covering for the first time and not rating for the time being.