Main points of investment:
The company is the largest domestic supplier of chemical reagents. The company's main business is chemical reagents, API and food additives, in vitro diagnostic reagents production and sales, chemical raw materials sales. Chemical reagents include general chemical reagents and electronic chemicals. In 2016, the company's operating income was 2.928 billion yuan, an increase of 16.50 percent over the same period last year, and its net profit was 97 million, an increase of 6.6 percent over the same period last year. In the first quarter of 2017, the company's operating income was 723 million yuan, an increase of 48.84 percent over the same period last year, and its net profit was 6.71 million yuan, an increase of-58.21 percent over the same period last year.
E-commerce transformation, to create chemical raw materials and chemical reagents online and offline sales platform. In 2016, the subsidiary company material Information Technology Co., Ltd. and Molecular Data Inc. Biotechnology Co., Ltd. reached a strategic cooperation, the two sides announced that they will conduct online mutual diversion, platform complementary resources, offline differential layout, online and offline, improve efficiency and optimization, further enhance the competitive advantages of both sides, from traffic to the final transaction to the deepening of services, to provide enterprises with better products and services. In May 2017, the company's e-commerce platform "looking for Reagents" was officially launched, connecting upstream and downstream resources more deeply, and finally became an one-stop e-commerce service platform for the integration of all products and all channels in the industry, creating a chemical industry ecosystem.
Invest in Fujun gene and extend the industry chain of in vitro diagnosis. As an important technical carrier of accurate medical concept, gene detection plays a very important role in disease prevention and diagnosis, has a good market prospect and development space, and is one of the fastest growing subdivisions in the in vitro diagnosis industry. In 2016, XiLongUSA invested $27.1647 million to acquire a stake in Fulgent Genetics and Inc.15% in the United States. In September 2016, Fulgent was listed on NASDAQ in the United States. Through strategic investment, the company introduces international leading molecular diagnostic technology and professional service concept, actively introduces partners to set up Fujian Fujun Gene Biotechnology Co., Ltd., and sets up a third-party medical laboratory-- Fu Rui Medical Laboratory. Promote the application and transformation of foreign genetic testing technology in China, with infant testing (detection of rare diseases) as the starting point Gradually infiltrate into the blood, cancer, cardiovascular, endocrine and other projects in the field of gene testing, the company through foreign investment, break through the existing business types of in vitro diagnostic reagents, to the more cutting-edge field of gene testing.
Industry-research cooperation to expand the business of new semiconductor materials. The company's original production capacity of electronic chemicals is 30,000 tons / year, and the production capacity of IPO is 50,000 tons / year, but the maximum capacity utilization has not yet been reached by the end of 2016. Shenzhen Hexun Semiconductor Materials Co., Ltd., which is 55% owned by Shenzhen Hexun Semiconductor Co., Ltd., which is renamed Shenzhen Huaxun Semiconductor Materials Co., Ltd., is jointly owned by Shenzhen Hexun Semiconductor Materials Co., Ltd. and Shenzhen Advanced Technology Research Institute of Chinese Academy of Sciences. CIC Semiconductor focuses on the R & D, production and sales of key materials for wafer-level advanced packaging, focusing on the key processes such as wafer temporary bonding, fan-out packaging, silicon through holes and so on. Provide system solutions and materials. By the end of 2016, CIC Semiconductor had mastered the technologies and patents related to wafer thinning and silicon through-hole packaging. On the one hand, the foreign investment of the holding subsidiary is in line with the professional R & D team to improve the efficiency and output of new product research and development; on the other hand, through the integration of industry and research, it continues to infiltrate into the field of new semiconductor materials to further improve its competitiveness and service ability.
Profit forecast and rating. It is estimated that the company's 17-19 net profit will be 81 million yuan, 139 million yuan and 169 million yuan, corresponding to EPS 0.14,0.24,0.29 yuan respectively. As the company's business expansion is still in the adjustment stage, it will not be rated for the first time.
Risk hint. 1) the subsidiary business is not as expected; 2) the price of raw materials is rising; 3) the environmental policy is stricter; 4) the development of e-commerce platform is not as expected.
