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隆基机械(002363)中报点评:毛利率企稳回升 全面进军OEM高端市场

Longji Machinery (002363) Interim Report Review: Gross Margin Has Steady Recovery and Fully Entered the High-End OEM Market

中金公司 ·  Aug 18, 2016 00:00  · Researches

1H16 performance meets expectations

Longji Machinery announced 1H16 results: operating income of 764 million yuan, an increase of 6.7% over the same period last year; net profit belonging to the parent company was 38.67 million yuan, an increase of 3.8% over the same period last year, corresponding to a profit of 0.10 yuan per share. The company deducted non-net profit of 39.35 million yuan, an increase of 36.6% over the same period last year, which is in line with our expectations.

Trend of development

Strengthen procurement control and reduce costs, increase the contribution of products with high gross profit margin, and significantly improve gross profit margin. 1H16 Longji machinery gross profit margin increased to 18%, a month-on-month increase of 2.6%, we believe that it is mainly due to the company's increased control over procurement, so that operating costs can be effectively controlled. In addition, ordinary brake hubs and brake discs with higher gross profit margin increase in 1H16 revenue, increase contribution to gross profit, product portfolio optimization, lead to a significant increase in gross profit margin, and the company's profitability has been improved.

The devaluation of the RMB has led to a continuous increase in the contribution of overseas business, and the financial expenses have improved significantly.

The company's overseas business accounts for 65% of 1H16. We believe that it is mainly due to the continued depreciation of RMB, which promotes the growth of the company's export business. At the same time, the increase in the proportion of overseas business with higher gross profit margin also contributes to the growth of overall gross profit margin. The company's 1H16 financial expenses decreased by 91.7%, mainly due to the reduction of the company's borrowing interest during the interest rate reduction cycle.

Raise and invest in high-end institutional disk projects to enter the high-end market of OEM. The company announced on the evening of the 17th that it plans to raise 600 million yuan to invest in the high-end brake disc renovation and expansion project, which the company expects to make a profit of 64.38 million yuan after completion. We believe that the completion of the project is expected to help the company to enter the overseas OEM high-end market, complete the company's domestic and foreign OEM, AM market comprehensive coverage.

Profit forecast

The company's 1H16 results are in line with our expectations and we maintain our earnings per share forecast for 2016 and 2017 unchanged.

Valuation and suggestion

At present, the company's share price corresponds to 72x 2016e P Universe E. We maintain our recommended rating and target price of 17 yuan, which is 32.09% higher than the current share price.

Risk.

Che Yi net continues to lose money.

The translation is provided by third-party software.


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