Key data of recent financial report
In 2015, the company realized operating income of 4.171 billion yuan, a decrease of 10.06% over the same period last year; the net profit attributable to shareholders was 349 million yuan, an increase of 40.1% over the same period last year, and planned to pay 0.35 yuan for every 10 shares. In the first quarter of 2016, the company achieved an operating income of 741 million yuan, a decrease of 23.88% over the same period last year, and a net profit of 56.4783 million yuan, an increase of 8.27% over the same period last year.
The company expects net profit in the first half of 2016 to grow by 0.45% Murray 33.93% compared with the same period last year.
Main points of investment
Take a multi-pronged approach to cultivate new performance growth points
We study and judge that the company's future performance growth points mainly come from: overseas markets, new products, new business. 1) in recent years, the company has actively distributed overseas markets and promoted the export of cable products by means of direct export and cooperation with domestic enterprises. at present, its performance has covered more than 30 countries. We expect that the contribution of overseas markets (direct and indirect exports) to the company's cable revenue is expected to reach about 15% by 2020.
2) in the field of high-end products, the company has a competitive advantage in submarine cables, cables for nuclear power stations, UHV overhead lines and many other fields, and related products have accumulated strong supply experience, and are strengthening the R & D of new products such as umbilical cord cable, 500kV high voltage DC submarine cable, locomotive and rolling stock cable, which will help the company expand into ocean engineering, rail transit and other emerging markets. 3) in 2015, the company established Qingdao HanCable founder Network, a wholly-owned subsidiary, by merging Qingdao HanCable Private Capital, to appropriately expand new business and increase profit sources in finance, Internet and other fields.
Launch employee stock ownership plan to demonstrate confidence in performance
In this period, the employee stock ownership plan plans to raise no more than 400 million yuan to increase the stock holdings by means of purchase in the secondary market. The controlling shareholder undertakes to bear the responsibility of making up the difference for the principal of the holder of the plan.
Give a rating of "increasing holdings"
We expect that the company will achieve EPS of 0.13,0.15,0.18 yuan under current equity in 2016-2018, corresponding to 35.7,30.0,25.5x Pmax E.
Risk hint
Overseas business expansion may not meet expectations; new product development may not meet expectations; industry competition may intensify.
