The main business bottomed out and picked up. In the first quarter of 2016, the company achieved operating income of 102 million yuan, down 1.61% from the same period last year, an increase of 16.42% month-on-month, and has basically reached the level of Q1 high in the past (2015). The prosperity of the industry has exceeded Q1 since April and the performance in 2016 is expected to be much higher than that in 2015.
The main business is upgraded to high-end applications. With the increase of terminal demand for precision plastic products such as medical products and high-end 3C products, as well as the improvement of processing environment and efficiency requirements, the localization process of all-electric injection molding machine is increasing. The company's SANDAL series of products are fully promoted for the high-end all-electric injection molding machine industry, which will open up a new broad market to offset the decline in the industry as a whole.
Combined with iNET information management system, the overall layout of intelligent manufacturing. The company is one of the few listed companies with mature industrial information management system solutions, strategically laying out the products and system applications from the perception layer, the field manufacturing layer to the application layer. Based on the huge amount of equipment in the plastic machinery industry, there will be a large market space in the future. It has been successfully recognized by GM Group through competitive bidding and has become a manufacturing process network management system designated by GM Group for its automotive plastic parts suppliers.
To enter the industrial robot business, industry resources and core technology are the advantages. The company announced at the end of 2015 that it will raise a total of 150 million yuan and its own funds for the production and research and development of industrial robot business. The advantage of the company lies in the accumulation of customer resources and industry applications in the downstream industry, as well as industrial control technology, industrial bus technology and servo drive technology, which will help to improve the self-control rate of the core components of industrial robots in the future.
In cooperation with Dingjie software strategy, the intelligent factory pattern is becoming more and more perfect. On April 26, 2016, the announcement signed the "Industrial 4.0 Strategic letter of intent" with Dingjie Software, which will use the intelligent manufacturing architecture model constructed by Dingjie software, combined with the company's industrial intelligent equipment control and management, to open the intelligent factory of PCS-MES-ERP from the bottom up, with a view to building and running an intelligent demonstration factory, and will actively explore other more in-depth cooperation.
Maintain the "prudent recommendation-A" investment rating. The company's corresponding 16-year PE and PB are 64.5 and 4.9 respectively, covering for the first time and giving a "prudent recommendation-A" investment rating.
Risk hint: downstream demand decline accelerated, smart manufacturing layout did not meet expectations.
