Investment suggestion
We predict that the EPS of the company from 2016 to 2018 is 0.16,0.17 and 0.19 yuan, respectively, and the corresponding PE is 64 times, 59 times and 53 times. The company's performance declined slightly in the first half of 2016, and in the future, it will actively strengthen channel management and market development, focus on technological innovation and product upgrading, and enhance the overall competitiveness of the company. The company will actively improve the layout of overseas investment, will rely on the precipitation and accumulation of technology in the industry, and accelerate the development of welding robots. We are optimistic about its future development, covering it for the first time and giving it a recommended rating.
Main points of investment
Performance declined slightly, actively strengthen channel management and market development: the company released the 2016 mid-year report, due to the macroeconomic impact at home and abroad, the company's downstream demand in the welding industry has not significantly improved, the first half of the year operating income of 266 million yuan, down 6.33% year-on-year, to achieve home net profit of 46.3893 million yuan, down 10.69%. During the reporting period, the company actively strengthened channel management and market development. In the domestic market, the company has adjusted the sales organizational structure, established a direct sales team, targeted at benchmarking customers and high-end products, integrated and optimized sales channels, and actively strengthened online channel development and product promotion. In terms of overseas markets, the company strengthens the development of overseas weak markets and gradually improves the sales and service system in key areas to improve the quality of overseas services.
Focus on technological innovation and product upgrading to enhance core competitiveness: during the reporting period, on the basis of years of precipitation and accumulation in the welding process field, the company continued to carry out research and development of new welding processes, focusing on middle and high-end products and technology. speed up the transformation process of existing technological achievements. The series of products of the cooperation project between the company and CLOOS have entered the stage of small batch trial production, which will be equipped with the company's welding robot, which is expected to improve the company's welding process and production management and quality control capabilities. In addition, the company's field management II generation product series has also entered a small batch trial production stage, which will further improve the company's product line. The company's multi-function high-power gas shielded welding and other projects are still in the research and development stage of the prototype, after completion will further enhance the overall competitiveness of the company.
Improve the layout of overseas investment and accelerate the development of welding robots: during the reporting period, the company actively promoted the layout of overseas investment and has completed its investment in American subsidiaries. will further play its role in investment and business development in the Americas. In addition, the company has decided to set up a German subsidiary as a platform for business development and foreign investment in Europe. During the reporting period, the company accelerated the development of robot business, not only increasing investment in product and technology research and development, but also actively seeking cooperation with excellent robot enterprises at home and abroad. In the future, the company will rely on the accumulation of welding applications, especially robots, focus on the development of welding automation, digital intelligence, specialization and high efficiency, and accelerate the company's welding robot development strategy.
Risk hint: downstream demand continues to be low, welding robot progress is not as expected.
