I. Overview of events
The company released its mid-2016 mid-year report: the operating income in the first half of 2016 was 97.71 million yuan, up 13.54% over the same period last year; the net profit attributable to shareholders of listed companies was 39.35 million yuan, up 28.02% from the same period last year; and the net profit attributable to shareholders of listed companies excluding non-recurring profits and losses was 36.43 million yuan, up 28.62% over the same period last year.
II. Analysis and judgment
Steady growth in income and stable profit margin
In the first half of 2016, the operating income was 97.71 million yuan, an increase of 13.54% over the same period last year; the net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 39.35 million yuan, an increase of 28.02% over the same period last year. The steady increase in revenue in the first half of the year compared with the same period last year is mainly due to: during the reporting period, according to the statistics of the China bus Statistical Information Network, from January to June 2016, the total sales of passenger cars over 5 meters were 106347, an increase of 15.55 percent over the same period last year, with a net increase of 14300 vehicles. Affected by the overall industry environment, operating income has increased steadily.
Gross profit margin and net profit margin remain at a high level
The company's gross profit margin in the first half of 2016 was 56.1%, down 1.7% from the same period last year, and the net profit was 40%, an increase of 4.6% over last year. The main reason why the company's gross profit margin and net profit margin remain high is that the company's main products have a high technical threshold and have an absolute market dominance of more than 50% of the market share.
The advantages of car networking and intelligent driving card position are obviously optimistic for a long time. The company is the electronic leader of bus body, mastering international advanced bus body control technology, and has high-quality customer resources of 70 domestic bus enterprises, such as Yutong, Jinlong and so on. The superposition of advanced CAN bus technology and high-quality customer resources creates unique vehicle networking and intelligent driving card advantages. At the same time, the company's current ownership structure is conducive to the extension development of the company.
Third, profit forecast and investment suggestions
It is optimistic that the company has the advantage of high occupancy of bus CAN bus products, endogenesis and extension in parallel. It is estimated that the EPS in 2016, 2017 and 2018 is 0.26,0.27,0.31 yuan respectively, corresponding to 63.77,61.79 and 54.14 times of PE, maintaining the "highly recommended" rating.
Fourth, risk hint: the overall market environment of the bus industry has deteriorated, and the development of extension is not as expected.
