Main points of investment

Cloud printing business has made a breakthrough and developed into the fast lane

Cloud printing business after more than a year of market expansion, at the same time, with the continuous improvement of offline production capacity, cloud printing business achieved a breakthrough in 2016. In 2016, according to the characteristics of "more varieties, less batches" of cloud printing products and scattered customers, the company gradually improved the construction of its business operation model, that is, it gradually expanded to C-end customers through the B2B model. By the end of 2016, the number of dealers and stores engaged in daily direct and indirect transactions exceeded 3000, and business expansion has achieved initial results, laying a good foundation for the rapid development of the next step of business.

The strong growth rate of overseas business effectively drives the growth of the company's equipment business.

In overseas markets, through the quadrennial German Druba Printing Exhibition, the company has increased its overseas promotion efforts, while strengthening the joint expansion of its overseas business with Heidelberg, achieving export sales revenue of 117 million yuan for the whole year, an increase of 34.46% over 2015. overseas business expansion has achieved initial results, effectively driving the growth of the company's equipment business sales.

Dingzeng carries out intelligent upgrading construction to enhance the company's equipment manufacturing capacity.

The company was approved by the Development and Review Commission in August 2016 to raise funds to invest in the construction project of intelligent printing equipment production line. At present, the company has completed the transformation of automatic logistics on its own equipment, and the first intelligent printing production line in cooperation with Guilian Holdings is expected to be put into production in 2017. The total domestic market space for the transformation of intelligent printing equipment is more than 10 billion. With the industry gradually bottoming out and rebounding in the future, the technical transformation of the printing plant will promote the release of the demand for intelligent equipment, and the company is expected to be the first to benefit.

Profit forecast and investment suggestion

It is estimated that the net return profit of the company from 2017 to 2019 is 192 million yuan, 222 million yuan and 265 million yuan respectively, and the EPS is 0.44,0.51,0.61 yuan respectively, and the corresponding Pmax E is 32x, 28x and 23x, respectively. Consider that smart manufacturing will be the next tuyere, giving the company a "buy" rating.

Risk hint

The macro-economy continues to decline; downstream demand growth is not as expected.