Main points of investment:
Matters: Abbott announced its results for the first half of 2016, with revenue of 465 million yuan, an increase of 292.38%, net profit of 74 million yuan, an increase of 480.12%, and basic earnings per share of 0.10 yuan.
Backdoor listing of metal roofing integration service providers, 2016H1 performance rapid growth. The company landed in the capital market through backdoor "Zoomlion Electric" in 2015, and is a metal roof (wall) enclosure system integration service provider based on metal roofing system and distributed photovoltaic roofing system. 2016H1 achieved revenue of 465 million yuan, an increase of 292.38% over the same period last year; net profit of 74 million yuan, an increase of 480.12% over the same period last year, mainly due to the enhanced financial strength and business development efforts of the company after backdoor listing; the net operating cash outflow was 116 million yuan, an increase of 121.74% over the same period last year, mainly due to the increase in procurement funds caused by the company's increased business volume. The company expects its return net profit to increase by 0-50% from January to September.
Thanks to the decline in the expense rate, the net interest rate has risen sharply compared with the same period last year. 2016H1's gross profit margin was 29.84%, up 0.6% from a year earlier. The rate of expenses for the three items was 8.6%, down 9.98% from the same period last year, of which the rate of management expenses dropped sharply by 7.2% to 5.99%, and the rate of sales expenses decreased by 2.85% compared with the same period last year to 2.31%. Affected by the above factors, the attributable net interest rate was 15.92%, an increase of 5.15 percentage points over the same period last year.
Extension to improve the layout of the whole industry chain, involved in overseas markets and the field of intelligent building. In 2015, the company acquired Sanyi in Shenzhen to open up overseas and domestic markets of foreign-funded enterprises. In 2016, it signed a strategic cooperation agreement with Situang Electronics, hoping to realize the organic combination of the company's intelligent roofing system and its electronic chips, and to realize big data's collection. accelerate the promotion of intelligent building business Acquire 90% equity of Zhongwei Steel structure and Zhongwei Design, and greatly enhance the overall strength of the company's architectural design and management through the introduction of top design resources (two academician shareholders of the Chinese Academy of Engineering and a number of national first-class registered structural engineers). Further improve the layout of the industrial chain.
Steadily increase the introduction of strategic investors to enhance the overall market competitiveness. The company previously announced the introduction of strategic investors through a non-public offering (no more than 80.14 million shares) at a price of 8.73 yuan per share and raising no more than 700 million yuan for replenishment. The introduction of four strategic investors will greatly improve the company's overall market competitiveness, including cooperation with Fosun Group in intelligent buildings and new urbanization. Haier Venture Capital and Haier Venture Capital complement each other in the fields of construction new energy / modern warehousing logistics / cloud community, and rely on the median financial control global investment network system to make equity investment. Take advantage of Oriental International financial leasing to enhance the ability to provide customers with the overall service solution of photovoltaic power station. At present, the third revised draft has been released for non-public issuance.
Profit valuation and forecast. The company specializes in metal roofing business to be listed on the scarce target, after the listing to solve the capital bottleneck ushered in a period of rapid development, it is estimated that 2016-2017 EPS (without considering additional dilution) is 0.49 yuan and 0.64 yuan respectively, giving a 16-year 35-40 times valuation, a reasonable value range of 17.30 yuan to 19.78 yuan, the first coverage to give a "buy" rating.
Risk hint. Payback risk; M & An integration risk.