Key data of financial reporting
In the first half of 2016, operating income fell 11.9% to 1.828 billion yuan compared with the same period last year, and the net profit attributable to shareholders increased by 5.98% to 190 million yuan over the same period last year. The company expects net profit in the first three quarters of 2016 to grow by 9.83% and 34.23% compared with the same period last year.
Main points of investment
Winning the bid for offshore wind power, UHV and other high-end engineering projects, to maintain market competitiveness affected by the decline in the price of copper, the main material of cable, the company's operating revenue in the first half of the year fell 11.9% compared with the same period last year. Along with the established development plan, the company has stepped up the development of offshore wind power, UHV and other high-end markets, maintained market competitiveness, and promoted the optimization of business structure. The winning projects include (but are not limited to): Jiangsu Dongtai 200MW offshore wind power project steel wire armored submarine cable project, State Grid Ximeng-Taizhou UHV DC line project steel core aluminum strand project, Qingdao Metro Line 3 flame retardant power cable project, Saudi Aramigizan 132kV buried cable project, etc.
Financial business steadily promotes the income of the subsidiary "Han Cable Private Capital" in the first half of the year fell 3.93% to 27.6 million yuan compared with the same period last year, but the net profit increased by 14.3% to 24 million yuan compared with the same period last year. According to the previous announcement, in early August 2016, Qingdao Qingyin Financial Leasing Co., Ltd., which is 34% owned by the company, was approved by the CBRC to set up, and the company's financial business took a step forward. We believe that the company's active expansion in the financial field can increase the efficiency of the use of idle funds, achieve the optimal allocation of resources, and cultivate new performance growth points.
To maintain the "overweight" rating, we expect that the company will achieve current equity EPS of 0.124 yuan, 0.15 yuan and 0.18 yuan in 2016-2018, corresponding to 36.5,29.9,25.7 times Phand E.
Risks suggest that business expansion may not meet expectations, new product development may not meet expectations, and industry competition may intensify.
