The performance does not meet the promise, pay attention to the process of additional issuance.
Net profit fell 42%, unfinished performance promised that the company's revenue in 2015 was 690 million yuan, down 16.21% from the same period last year, while the net profit of shareholders belonging to listed companies was 36 million yuan, down 42.43% from the same period last year. 15 years of economic downturn, the equipment industry is in the doldrums, the company signed fewer new orders than in 14 years, while product prices fell, resulting in a decline in profits.
The company has not fulfilled its 15-year performance commitment (net profit 70.57 million, deducting non-net profit 66.36 million). According to the commitment, the company will buy back 21.19 million major shareholders at a total price of 1 yuan and cancel them (5.4% of the total share capital), and the company's share capital will be reduced to 371 million shares. the proportion of shares held by major shareholders decreased from 59.40% to 57.08%.
Downstream new construction decreased, equipment sales revenue and gross profit declined.
The development of petrochemical and other industries downstream of the company is sluggish, the number of new construction projects has decreased, and the sales revenue and gross profit margin of the company's drying equipment, electrochemistry and other equipment have declined to varying degrees. The company's 15-year equipment sales revenue has dropped by 21%. The overall gross profit margin fell by 1.21%, of which the revenue from drying equipment (accounting for 66%) fell 14.36% and the gross profit margin decreased by 4.76%. In addition, the company's engineering revenue was 19 million yuan, down 15%. The technical income from supervision and scientific research was 108 million yuan, an increase of 17 percent.
Strong scientific research strength, environmental protection equipment is expected to accelerate the promotion
Tianhua Institute is one of the ten key scientific research institutes of the former Ministry of Chemical Industry, with a total of more than 400 major scientific and technological achievements. Recently, the State Council has issued encouraging policies to support the transformation of scientific research achievements, and the company's many scientific research achievements are expected to accelerate the transformation. In the face of the decline in demand for chemical equipment, the company gives full play to its scientific research advantages and actively extends to environmental protection equipment. The company's environmental protection equipment such as sludge drying, lignite upgrading, ammonia nitrogen wastewater treatment and low NOx burners are put on the market and commercialized, which is expected to accelerate promotion.
The reform expectations of scientific research institutes under large groups are expected, and the EPS of 16-18 years is expected to be 0.14,0.18,0.24 yuan respectively. The company is the only listing platform under the Academy of Chemical Sciences, the group is rich in high-quality assets, there are expectations of scientific research institute reform. The company's non-public offering has been accepted by the CSRC (raising 700 million yuan, the initial price of the issue is 9.35 yuan), is currently in the feedback stage, it is suggested to pay attention to the process of additional issuance. The company belongs to the small company under the big market and big group, and maintains the "buy" rating.
Risk hint
The progress of additional issuance is lower than expected; the industrialization of R & D achievements is lower than expected.