2016 annual performance is in line with expectations
Easite announced its annual results of 5.25 billion yuan in operating income, an increase of 42.4% over the same period last year, and a net profit of 472 million yuan belonging to the parent company, an increase of 69.0% over the same period last year, corresponding to 0.82 yuan per share. Performance growth is in line with expectations. The company will pay a dividend of 0.90 yuan for every 10 shares and increase 30 shares, and the net profit of 1Q17 is expected to increase by 30% year-on-year to 33374107 million yuan.
Core business growth is strong, photovoltaic system integration products / high-end power supply and data center business revenue respectively increased by 49,33% year-on-year; sales expense rate decreased 1.2ppt, mainly due to high income growth of photovoltaic and data center business sales expenses; non-recurrent income significantly increased performance, including investment income and government subsidy income from the transfer of Jiangnan integrated equity The net cash flow of business activities was 563 million yuan, an increase of 155% over the same period last year.
Trend of development
The photovoltaic industry promotes high performance growth, and the growth rate may slow in 2017. The rapid development of the photovoltaic industry in 2016 led to a rapid growth of 49% in the company's photovoltaic system integration business revenue. However, due to the electricity price adjustment in the middle of the year, the demand for photovoltaic products in 2H17 is likely to decline similar to that in the same period in 2016. In addition, the company has made great efforts to develop the operation of photovoltaic power stations, there have been about 200MW grid-connected power generation, revenue of 86.85 million yuan, 2017 will contribute to performance increment.
The income of the charging pile is much lower than expected, and the performance elasticity has increased in 17 years. In 16 years, the revenue of charging piles was only 13.34 million yuan, down 86 per cent from the same period last year. However, the company has built charging stations in Dongguan, Guangzhou and other cities, and will expand the intelligent three-dimensional parking market. The production and sale of new energy vehicles will accelerate the investment in charging facilities, and the charging pile plate is expected to break out in 17 years.
High-end power supply and data center business growth is solid. The year-on-year growth rate of sector revenue has increased to 33%, mainly due to the rapid growth of data center products and solutions, which has been successfully applied to the data center projects of Tencent, Baidu, Inc. and China Mobile Limited. In addition, the company is actively exploring the use of BT, BOT and building a variety of self-operating cooperation models, and invested in Guo Fu Guangqi to expand IDC and cloud computing business. The future growth of the UPS and data center sectors is guaranteed.
Profit forecast
We maintain the 18-year EPS forecast of 0.94 pound 1.12 yuan in 2017.
Valuation and suggestion
At present, the company's share price corresponds to the 2017 44x Pram E. After the company's share price rose sharply in the high transfer catalysis, the current valuation is still high in the historical valuation range. We maintain a neutral rating and a target price of 44.50 yuan, which is 7.54% upside from the current share price.
Risk.
Photovoltaic industry power restrictions and electricity price subsidies are reduced; production and sales of new energy vehicles are lower than expected.