Main points of investment

Events:

The company released its annual report for 2015, with revenue of 900 million, an increase of 7.9% over the same period last year, and a net profit of 23.17 million for shareholders of listed companies, an increase of 24.9% over the same period last year. 2015Q4, realized revenue of 280 million, an increase of 30% over the same period last year, and a loss of-3.3 million.

Comments:

Large-size, high-strength and energy-saving glass becomes a bright spot. In the past 15 years, the company's glass deep processing business achieved an income of 500 million yuan, an increase of 43% over the same period last year, mainly due to the large-size, high-strength and energy-saving glass production capacity of the Tianjin subsidiary. It has undertaken a number of landmark glass projects such as the headquarters of Apple Inc in the United States and Walt Disney Company in Shanghai. The gross profit margin is 40.1%, which is 14% higher than that of the same period last year, which is due to the high gross profit margin of special glass.

Competition in glass equipment business has intensified. In the past 15 years, the company's sales of toughening equipment were 340 million, down 25% from the same period last year, and the gross profit margin was 14.7%, down 9% from the same period last year, due to the downturn in the downstream glass processing industry. Among them, the sales volume was 200,33% lower than the same period last year, and the unit price was 1.68 million per unit, compared with 1.48 million per unit in 14 years. The price increase was due to the increase in the sales share of large-size toughened units.

Comprehensively enter the glass deep processing "Industrial 4.0" business. In the past 15 years, the company has successively established Shanghai Beibo Automation and acquired Shenzhen Zhenxing. The former provides an overall solution for the automatic production of construction glass users, while the latter is mainly engaged in automotive glass pretreatment and glass screen printing equipment, with a certain level of automation. Auto glass automatic production line is monopolized by overseas multinational enterprises. Zhenxing is the only local enterprise with production capacity and entering the supply chain of large glass manufacturers. It has cost advantage and is optimistic about the "import substitution" of the industry.

Investment advice:

The company's large-size, high-strength and energy-saving glass technology has obvious advantages, the demand for overseas orders is strong, the company's performance growth is guaranteed, the glass equipment industry is at the bottom of the boom, and the marginal improvement probability is high. In the medium and long term, the company strategically anchors the field of glass deep processing automation, and the industry space is large, relying on the company's R & D base in the field of glass equipment is expected to become bigger and stronger.

It is estimated that the company will have an EPS0.07 of 0.09,0.12 yuan in 16-18 years.

Risk hint: the overseas economy is not as expected and the domestic real estate market is declining.