I. Overview of events
The company released its quarterly report for 2016: 2016Q1 realized operating income of 511,770,000 yuan, an increase of 28.38% over the same period last year; net profit belonging to shareholders of listed companies was 25.544 million yuan, up 79.16% over the same period last year; and net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 23,570,000 yuan, up 70.22% over the same period last year.
II. Analysis and judgment
Rapid revenue growth and high profit margins
2016Q1 realized operating income of 511,770,000 yuan, an increase of 28.38 percent over the same period last year, and the net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 23,570,000 yuan, an increase of 70.22 percent over the same period last year.
The sharp increase in revenue in the first quarter compared with the same period last year is mainly due to the substantial increase in operating income due to the impact of the overall industry environment, and the receipt of 5.1758 million yuan in VAT rebate for software products in the fourth quarter of 2015.
The gross profit margin remained unchanged from 2015, and the fee rate dropped sharply. The company's 2016Q1 gross profit margin was 58%, the same as last year, and the net profit margin was 49%, an increase of 10 percentage points over last year. The main reason why the company's gross profit margin remains high is that the company's main products have a high technical threshold and have an absolute market dominance of more than 50% of the market share. The company's management fee and sales rate decreased by 4.6 and 3 points respectively compared with the whole of last year, reflecting the company's high level of enterprise management.
The advantages of car networking and intelligent driving card position are obviously optimistic for a long time. The company is the electronic leader of bus body, mastering international advanced bus body control technology, and has high-quality customer resources of 70 domestic bus enterprises, such as Yutong, Jinlong and so on. The superposition of advanced CAN bus technology and high-quality customer resources creates unique vehicle networking and intelligent driving card advantages. At the same time, the company's current ownership structure is very conducive to the epitaxial development of the company.
Third, profit forecast and investment suggestions
It is optimistic that the company has the advantage of high card position based on CAN bus products, endogenesis and epitaxy in parallel. It is estimated that the EPS in 2016, 2017 and 2018 is 0.71,0.80,0.91 yuan respectively, corresponding to 71.44,63.59 and 56.09 times of PE, maintaining the "highly recommended" rating.
Fourth, risk hint: the market environment is deteriorating and the development of extension is not as expected.
