I. Overview of events
According to the annual report released by the company in 2016, the company's operating income reached 344 million yuan in 2016, an increase of 2.47% over the same period last year, and the net profit belonging to shareholders of listed companies was 42.655 million yuan, down 0.59% from the same period last year.
II. Analysis and judgment
The overall revenue remained stable, and the tunnel, industrial and civil construction business grew rapidly in recent years. The company's tunnel, civil and industrial products became bright spots in 2016, increasing by 39.99% and 35.53% respectively compared with the same period last year. It has become an important driving force for stable income growth, accounting for 17.23% and 21.45% of the total receivables, respectively. At the beginning of 2016, the company was identified as the fan supplier of Wanda commercial real estate, and the civil fan business grew satisfactorily. The revenue of public nuclear power products reached 9.0428 million yuan in 2016, an increase of 36.06% over the same period last year. The "CAP1400 containment recirculation cooling fan unit" undertaken by the company has passed the acceptance, which is expected to lead to the rapid growth of the nuclear power business plate. During the 13th five-year Plan period, China is expected to build 2500 km of subways, with CAGR reaching 11.38%. By 2020, China plans to build 5000 tunnels with a length of more than 9000 km. With the growth of infrastructure investment such as subways and tunnels, the company's main business will continue to improve.
The company's cash flow improved significantly, and the calculation of accounts receivable affected the performance to a certain extent. In 2016, the company increased the efforts to urge the repayment of accounts receivable, and the cash flow of business activities, investment activities and fund-raising activities all improved significantly. The company's overall cash and cash equivalents increased by-14.2935 million yuan in 2016, a significant improvement over 2015 and an increase of 92.96% over the same period last year. At the same time, the company's accounts receivable reached 515 million yuan, an increase of 7.41% over the same period last year, but the growth rate of accounts receivable has gradually slowed down since 2013. The company's bad debts in 2016 totaled 89.6259 million yuan, an increase of 26.1203 million yuan over 2015. Accounts receivable and bad debts are still important factors affecting the company's net profit performance.
Pay attention to the progress of corporate mergers and acquisitions, the transformation of military industry has a bright future
At present, the company is actively promoting the merger and acquisition of Hongxiang Technology, Zhongqiang Technology and supporting fund-raising issues. after the completion of the merger and acquisition, the company will change the status quo of relatively single product categories and expand to the R & D and manufacture of high-end equipment for infrared imaging, ultraviolet imaging and gas imaging, as well as military camouflage products. The company's ventilation equipment is widely used in warships and large military bunkers, and is expected to be deeply integrated with medium-strength science and technology and red technology in the military field in the future. M & A targets are high-quality enterprises in their respective fields, have given a higher performance commitment, is expected to greatly improve the performance of listed companies.
Third, profit forecast and investment suggestions:
Regardless of the impact of this merger, the company's EPS from 2017 to 2019 is expected to be 0.35,0.49,0.58 respectively.
Taking into account the impact of this restructuring, the company's exam results from 2017 to 2019 were 201 million yuan, 266 million yuan and 339 million yuan respectively, the share capital after this rights issue and matching fund-raising was 270 million shares, the corresponding EPS was 0.74,0.98,1.25 yuan respectively, and the corresponding PE was 59 times, 45 times and 35 times respectively, maintaining a "highly recommended" rating.
IV. Risk hints
The progress of subway and tunnel construction slowed down, the reorganization of major assets was blocked, and the performance of mergers and acquisitions fell short of expectations.