Main points of investment:
Maintain the overweight rating. Taking into account the adjustment of product structure, the company's EPS forecast for 2016-2017 has been raised to 0.270.39 yuan (originally 0.24sor 0.29 yuan). Although the performance in the first half of the year has declined compared with the same period last year, we judge that the performance will break out sharply in the second half of the year, maintaining the target price of 14.97 yuan, corresponding to 38 times PE in 2017, with 56% space, maintaining the overweight rating.
The report is in line with expectations. The company's income / return net profit in the first half of 2016 was 1.305 million yuan respectively, an increase of 3.8% over the same period last year. The main reason for the decline in performance: Shanghai Langmai income recognition has a strong seasonality, less recognition in the first half of the year, income / net profit of 0.55 billion yuan, a significant decline compared with the same period last year.
It is estimated that the net profit of aluminum processing materials in the main industry is 53 million yuan, with a growth rate of 26%. The main reason is that the production capacity utilization rate of Baotou plant is improved, and the proportion of automobile materials continues to increase, which leads to the optimization of product structure. On the whole, the performance of the report is basically in line with expectations.
The second half of the year will see an explosion of results. Shanghai Longmai annual planned income of 650 million yuan, if realized, estimated net profit contribution will reach 120 million yuan, currently in hand order 723 million yuan, strong order ability to ensure Longmai performance. Main business: the company signed an intentional order with Valeo in France, and in the next five years, the supply of aluminum for automobile heat exchange will be increased from not less than 9000 tons to not less than 1.2-18000 tons, which is an important breakthrough in international automotive lightweight materials. performance is expected to continue to benefit.
The layout of the great health field will continue to go deep. The pace of the company's fixed growth has accelerated significantly since 2014, once a year. Following the acquisition of Longmai (mainly engaged in pharmaceutical clean area service) into the field of medical services, and at the beginning of the year, we continue to acquire Sichuan Chenxi, Youshi Medical and other companies, we expect that the company will continue to expand around the dual main business "aluminum processing + Great Health". The layout of the medical and health field may further accelerate the landing.
Risk Tip: the risk that the order is not as expected.