Investment suggestion
We predict that the net profit attributed to the parent company from 2016 to 2018 is 21 million, 25 million and 29 million, and the corresponding EPS is 0.09,0.11,0.13 yuan respectively. The company is mainly engaged in the research and development, production, sales and undertaking automation engineering and technical services of a series of products in the field of industrial automation, which can provide users with systematic, advanced, customized and cost-effective comprehensive solutions for industrial automation. With the depression of the downstream iron and steel industry in recent years, the company has actively developed the field of industrial automation outside the iron and steel industry, and achieved initial results. Among them, intelligent control technology, metallurgical process automation technology and application software are in the leading domestic and international advanced level. Cover and give a "recommended" rating for the first time.
Main points of investment
In the first half of 2016, the profit level reached the expected level, and the main business business picked up somewhat. In the first half of 2016, the company's operating income was 296.375 million yuan, up 8.06 percent over the same period last year; operating profit was 14.9081 million yuan, up-3.06 percent over the same period last year; and net profit belonging to shareholders of listed companies was 14.617 million yuan, up 8.33 percent over the same period last year. The operating income mainly comes from the iron and steel industry, totaling 225.0665 million yuan, accounting for 75.94%. In recent years, the company's main business has picked up, and the change in operating income is mainly due to the increase in the completion and settlement projects of the company during the reporting period. Of this total, the parent company realized a net profit of 13482862.79 yuan, accounting for 90.36% of the company's consolidated net profit in the reporting period, while the holding subsidiary Shanghai Jinzheng Information Technology Co., Ltd. achieved a net profit of 7048691.14 yuan in the reporting period, accounting for 47.24% of the company's combined net profit in the reporting period.
Increase investment in research and development, scientific research advantages to promote technological innovation. The company has inherited the rich scientific research achievements and strong technical force of the Metallurgical Automation Research and Design Institute in the field of industrial automation, and has continuously increased its R & D investment in recent years, only 19.9492 million yuan in R & D expenditure during the reporting period, an increase of 40.48% over the same period last year. By the end of the reporting period, the company had obtained 6 authorized patents (3 invention patents) and 4 software copyright certificates. At present, the company has authorized 109 patents, including 62 inventions, 47 utility models and 158 software copyright registration. Among them, intelligent control technology, metallurgical process automation technology and application software are in the leading domestic and international advanced level.
The downstream iron and steel industry is depressed, and actively open up the field of industrial automation. The company is mainly engaged in the research and development, production, sales and undertaking automation engineering and technical services of a series of products in the field of metallurgical automation, accounting for more than 85% of the income in the iron and steel industry in the past few years. In recent years, the recession in the downstream industry has led to a rapid decline in the company's income and profit scale. although the main steel business has picked up during the reporting period, the comprehensive gross profit margin has declined compared with the same period last year. In this context, the company actively promotes strategic transformation, stepping into the field of non-iron and steel industry automation, expanding its application to light industry, petrochemical, construction, building materials and environmental protection and many other industries. In addition, the company actively promotes the business in the robot field. With the technical experience accumulated in the automation industry, the company has developed a fully automatic robot palletizing system to intervene in the palletizing robot application market.
Risk hint: the main steel industry continues to be in the doldrums; the effect of business development is not as expected.