Main points of investment
1. The operation of the company has improved and the three rates for revenue growth have been reduced.
The company's business grew steadily during the reporting period, and revenue increased by 11.43% compared with the same period last year. At the same time, the company strengthened budget management and cost control during the reporting period, and the overall rate decreased by 1 percentage point.
During the reporting period, the company launched the 2016 stock option incentive plan to encourage 120 people, including the company's senior and core technical personnel, and it is expected that the company's management will be further improved.
two。 The company continues to promote the integration of the industrial chain through mergers and acquisitions
During the reporting period, the company acquired Tongde, Ningxia and Kangda, Jilin. Jilin Kangda is mainly engaged in the research and development and production of agricultural machinery, the company is a trade-oriented enterprise based on circulation, through mergers and acquisitions to strengthen the production capacity of agricultural machinery, strengthen the layout of the company's industrial chain.
In the future, through the establishment of an industrial M & A fund, the company will continue to search for M & A targets conducive to the strategic transformation of the company and enrich the business structure, so as to further improve the layout of the industrial chain.
3. There are great prospects for the development of the agricultural machinery industry, and the company will continue to benefit from the made in China 2025 strategic plan to formally include the agricultural machinery industry as one of the top ten key breakthrough areas. Agricultural machinery should be transformed to high-end, covering pre-and post-natal, full mechanization and full regionalization. At present, the mechanization rate of agricultural machinery in China is low, and concentrated in the mid-production stage, there is a lot of room for development, the company with the complete layout of the industrial chain will continue to benefit from the industry.
The agricultural machinery industry has shown a momentum of rapid development. In 2015, the main business income of enterprises above the scale of agricultural machinery nationwide was 428.368 billion yuan, an increase of 7.39 percent over the same period last year, much higher than the 3.32 percent growth rate of the machinery industry. The total profit income was 25.193 billion yuan, an increase of 8.88 percent over the same period last year.
4. Profit forecast
It is estimated that the company will achieve a net profit of 15 million, 21 million and 28 million, corresponding to EPS of 0.04,0.05,0.07 yuan, and PE of 196X, 144X, 108X in 16-18 years, which is cautiously recommended for the first time.
5. Risk hint
The development of agricultural machinery industry is not as expected, and the promotion of mergers and acquisitions is not as expected.