Performance in line with expectations and optimization of business structure
In 2015, the company realized operating income of 6.183 billion yuan, an increase of 76.08% over the same period last year; the net profit belonging to shareholders of listed companies was 117 million yuan, an increase of 49.26% over the same period last year; and the net profit after deducting non-profit reached 28.49 million yuan. The company's revenue increased significantly, mainly due to the incorporation of subsidiaries Zhongnuo Communications and Yuanlei Technology into the consolidated statements, while other subsidiaries remained basically stable. The growth of LED optoelectronic and green energy environmental protection, communications and smart home appliance products, software and technology development has improved the business pattern that used to rely mainly on trade, and the overall gross profit margin has also increased significantly. During the reporting period, the company reduced its holdings of 8 million Huaying technology shares, achieving an investment income of 112 million yuan. In the follow-up, in the case of obvious growth in production and marketing of the main industry, it is expected to dispose of loss-making assets and optimize the asset structure. Second, the substantial increase in management costs in the current period is also expected to be improved.
Performance commitment to build a safety cushion, additional issuance and reduction of investment assets to inject vitality into the development of the company, subsidiaries Zhongnuo Communication and Yuanlei Technology are currently in good condition, and have made performance commitments to the company in 2016, which are 120 million yuan and 40 million yuan respectively. It will build a safety cushion for the company's performance in the transition period. The company plans to issue 76.17 million shares in a non-public offering at a price of 8.58 yuan per share, raising a total of no more than 654 million yuan, and has been approved by the CSRC at the end of last year and is expected to be completed in the near future. At the same time, the company plans to reduce its available-for-sale financial assets Huaying Technology no more than 4.11 million shares and Guotai Junan no more than 4.5 million shares in 2016. In total, the additional issuance, addition and reduction of holdings will receive nearly 800 million yuan in cash, which will lay the foundation for optimizing the asset structure, improving the financial situation, and the follow-up development of the company.
Backed by Fujian Electronic Information Group, or the first to benefit from the strategic reform of local state-owned enterprises, the indirect controlling shareholder is Fujian Electronic Information Group, which is the responsible unit for the docking of Fujian-Taiwan integrated circuits determined by Fujian. It is also an important joint venture partner of Tailian Power Xiamen Wafer Factory. Fujian is an important part of the West Coast Economic Zone. After the two sessions, Fujian issued opinions on deepening the reform of state-owned enterprises and actively promoted the reform of local state-owned enterprises. As the only integrated circuit, consumer electronics and LED listing platform of Fujian Electronic Information Group, the company may benefit from the reform of Fujian electronic information industry and usher in the strategic opportunity for the reform of local state-owned enterprises.
Maintain a "buy" rating
The company's net profit for 16-18 is expected to be 2013249 / 286 million yuan, EPS0.53/0.66/0.75 yuan, corresponding to a 16-18 PE of 22X, 18X and 16X, respectively, maintaining a "buy" rating.
Risk factors:
Downstream product market changes, asset optimization is not up to expectations.