Performance is in line with expectations
In 2015, the sales revenue reached 682 million yuan, an increase of 26.9% over the same period last year; the net profit of shareholders belonging to the parent company was 157 million yuan, corresponding to 0.37 yuan of EPS, an increase of 22.6% over the same period last year, which is in line with our expectations. It is proposed to distribute a cash dividend of 0.6 yuan for every 10 shares. Profits belonging to shareholders of listed companies are expected to increase by 5% to 30% in the first quarter of 2016 compared with the same period last year.
Trend of development
Desai table promotes steady growth in performance: the company's operating revenue increased by 26.9% in 2015 compared with the same period last year, mainly due to the inclusion of Desai systems and Desai products in the consolidated table, and the merger proportion of the two companies increased to 70% in 2015. contribute a total of 48.77 million yuan to the net profit of shareholders of listed companies. The company's gross profit margin fell nearly 4 percentage points in 2015 compared with the same period last year, mainly due to an increase in the share of amalgamation and instrument agency business. At the same time, the increase in depreciation expenses and related taxes after the conversion of projects under construction also leads to an increase in operating costs.
Actively promote product line expansion: the company's fully automatic biochemical immunity analyzer in cooperation with IDS has been approved, further strengthening the company's influence in the biochemical field. At the same time, the adaptation of the IDS instrument platform acquired by the company and the company's existing chemiluminescence reagents is coming to an end, the chemiluminescence instruments independently developed by the company have also been put on the market for sale, and the chemiluminescence business is expected to become a new growth point of the company.
Start the extension expansion strategy and expand new business: the company acquired Desai Systems and Desai products in 2014, and the company is expected to continue to enrich its product line along the testing field in the future.
Profit forecast
Taking into account the increase in the capital reserve fund, the company's EPS in 2016 and 2017 is expected to be 0.42 yuan / 0.47 yuan respectively (down 60% and 62% respectively), an increase of 14% and 11% respectively over the same period last year.
Valuation and suggestion
Considering the increase in equity, we lowered the company's target price to 20 yuan (60% lower than the original target price of 50 yuan). The company's product layout is perfect, extension expansion enriches the product line, and there is room for improvement in future performance. Maintain the recommended rating.
Risk
The progress of marketing adjustment is slower than expected; the progress of chemiluminescence promotion is slower than expected.