Main points of investment
Event: the revenue in 2015 was 523 million yuan, up 25% from the same period last year, and the net profit attributable to it was 47 million yuan, up 177% from the same period last year. 2) the revenue in the first quarter of 2016 was 124 million yuan, down 2.6% from the same period last year, and the net profit attributable to it was 18.29 million yuan, up 17% from the same period last year. 3) the company signed a termination agreement with Beijing Fu Weihao.
Our comments on this are as follows:
The performance is gradually realized and enter the fast lane! 1) Annual report for 2015: the annual income in 2015 was 523 million yuan, an increase of 25% over the same period last year, and the net profit attributable to it was 47 million yuan, an increase of 177% over the same period last year. Among them, Youzhi Technology made a net profit of 50.72 million yuan in 2015, an increase of 62% over the same period last year. Shanghai Apani suffered a loss of 25.52 million yuan in 2015 due to a drag on revenue from the completion of the project. From the perspective of income structure, the income of sheet metal structures in 2015 was 401 million yuan, an increase of 3.0% over the same period last year, and the gross profit margin increased 1.1 percentage points to 22.1%. The flow monitoring income in 2015 increased by 73% (adjusted for the same caliber, excluding consolidation factors), and gross profit margin increased by 5.8% to 58.1%. 2) Quarterly report: the revenue in the first quarter of 2016 was 124 million yuan, down 2.6% from the same period last year, and the net profit attributable to it was 18.29 million yuan, up 17% from the same period last year. 3) focus on the main business and withdraw from the silicon carbide field: due to the high technical barriers and long research and development cycle of the project, the company signed an agreement with Beijing Fu Weihao to terminate the silicon carbide composite development project.
Jiechi technology: PCB waste liquid online recycling pioneer, 20 billion net profit market space. 1) the waste liquid is recycled online and the BOO treatment mode is innovated. At present, the mainstream waste etching solution is centralized treatment, only the extraction of copper, there is no reuse of the waste liquid. Jiechi Technology reuses PCB etching liquid online, bypassing middlemen by providing equipment and services free of charge. The discharge of waste water is up to the standard, while copper recovery and waste liquid reuse are realized, and the environmental protection plus economy is highlighted. As far as manufacturers are concerned, there is no need to buy etching solution (1200 Murray 1500 yuan / ton), and the economy is greatly improved. 2) cooperate with PCB giant to release the performance quickly. The company's PCB project has installed equipment in Foxconn, South Asia, Golden Elephant and other companies. The gross profit margin of Jiechi Technology is 30%, and the net profit is about 20%. 100% refund of value-added tax on recycled copper obtained by Jiechi technology. 3) the market space is huge: there are 4000 PCB households in the country (according to 5 lines, a total of 20,000 PCB lines), the annual net profit of one line is 1 million, the total net profit is 20 billion. At present, the company is the leader in the industry, with an annual net profit of 2 billion per cent.
With the successful research and development of crystal silicon battery equipment, the profitability of our structural parts business has been greatly improved. Through technical cooperation with researchers at Constance University in Baden-W ü rttemberg, Germany, the company has developed advanced solar crystal silicon cell automation equipment to jointly build the RCT brand (China). Germany provides chemical technology, Baoxin provides automation equipment. At present, the prices of similar products abroad are high, Baoxin Technology quickly cut into the market through the RCT brand; the gross profit margin is expected to be more than 30%, far exceeding the existing sheet metal structure products.
Investment advice: maintain the overweight rating. Considering the merger and acquisition of Jiechi Technology, we predict that the net profit of Baoxin Technology in 16-17 years will reach 2.2 billion yuan, and the market value of additional issuance will reach 7.1 billion yuan. The company is an absolute leader in the fields of PCB waste liquid circulation, matrix flow monitoring, valley electric heat storage heating and so on. PCB waste liquid recycling market space reached 20 billion net profit, listed capital increase to help Jiechi technology rapid expansion. Various places require the installation of accurate flow monitoring equipment, matrix flow monitoring ushered in the outbreak. Bottom area, continue to strongly recommend!
Risk hint: the progress of restructuring is lower than expected
