Event: the company announced its performance KuaiBao, with revenue of 1.369 billion yuan in 2016, an increase of 27.07% over the same period last year, and a net profit of 45.39 million yuan, an increase of 346.36% over the same period last year.
16 years to turn losses into profits, and Eco contribution performance. The main reason is that the company completed the acquisition of 100% stake in Aiko Semiconductor in May 16 and began to report in June. Aike Semiconductor has promised a net profit of 8450 yuan in 2016 and 104.5 million yuan in 2017, which will greatly increase its profitability.
The reform of state-owned enterprises has made a huge wave, and the capital operation is expected to continue.
The company actively promotes capital operation under the tide of state-owned enterprise reform, and has a clear train of thought and strong will for transformation. Through the divestiture of assets, mergers and acquisitions and the establishment of investment funds, we intend to explore mergers and acquisitions in many fields and make use of the capital market to become bigger and stronger. The company has initially formed the layout of the two strategic emerging industries of "integrated circuit" and "military industry". We believe that the pace of state-owned enterprise reform is firm, and with the continuous release of policy dividends, the company has huge room for imagination in national reform.
Merger and acquisition of Eco into the integrated circuit industry, the future is expected to continue the layout of the electronic industry chain mainland IC industry scale of 361 billion yuan in 2015, self-sufficiency rate of less than 40%, import substitution space is huge. With the increasing demand for high-end testing, third-party testing has become the trend of vertical segmentation. The concentration of independent testing industry is low, facing the demand of integration, the company currently accounts for only 1%, and there is plenty of room for development. Relying on Aike as the platform of the electronics industry, the company is expected to continue to extend to the integrated circuit industry chain in the future.
Investment rating and valuation:
We estimate that from 2016 to 2018, the company will achieve operating income of 1.369 billion yuan, 1.756 billion yuan and 2.329 billion yuan respectively, net profit of 45.39 million yuan, 199 million yuan and 324 million yuan, EPS of 0.08,0.34,0.56 yuan respectively, and corresponding PE of 219x, 50x and 31x respectively. Coverage for the first time, giving the company a "highly recommended" rating.
Risk Tips:
The company fails to integrate smoothly, the operation and management efficiency is low, the industry technology change, technology development is not timely, the net profit is not up to expectations, the performance commitment can not be realized.