Investment highlight
Benefit from the steady growth of the overseas AM market, actively develop the OEM market: the company's brake products overseas AM market business development is steady, with NAPA, Autozone formed a good cooperative relationship, is gradually opening up the domestic and foreign OEM market space; the steady growth of overseas AM market will become the company's technical and financial support to develop the domestic OEM market. At the same time, the company actively develops a new product structure, forming a pattern of passenger and commercial vehicle braking products at the same time, reducing the dependence on the commercial vehicle market.
Set up a joint venture company to enter the European high-end OEM market: in the past two years, the company has set up a joint venture with Budweiser in Denmark and Elsevier in Germany to actively seek opportunities to intervene in the European OEM market by making use of the advantages of European companies in brand and technology, combined with the advantages of domestic parts companies in cost and operation. The joint venture between the company and Germany Elsevier will focus on the high-end car brake disc business. In the future, it is expected to use foreign partners to enter the supply chain system of Porsche, ABB and other high-end brands and open the company's overseas OEM market.
Participate in Che Yi Company and enter the automotive aftermarket: different from product sales B2C, B2B model and service B2C model, Che Yi Company creatively integrates and opens up the entire supply chain of C2b2B, solves the business pain points of consumers and maintenance shops, and solves the problems of low bargaining power of maintenance end, unguaranteed quality of spare parts, high cost of logistics and distribution and untimely distribution through online trading platform. The company helps the small b end to solve the problems of customer acquisition and drainage through the che Yi an car maintenance network, car maintenance APP and other systems; at the same time, the ERP system developed for the small b side helps the small b side to solve the internal management problems such as order response, inventory management, parts procurement and so on. In addition, Che Yi company also helps the small b side to solve the problems of spare parts purchasing and matching and logistics and transportation through the B2B car easy matching platform and logistics distribution system.
Financial forecast
It is estimated that the annual operating income of the company in 2015-16-17 is 14.9 trillion yuan, an increase of 20.3 percent, 18.4 percent, 17.4 percent, and a year-on-year growth of 29.5 percent, 31.3 percent and 26.6 percent, respectively. The net profit attributable to the parent company is 0.60 million yuan, 31.3 percent and 26.6 percent, respectively. In 2015-16-17, the company's EPS was 0.20, 0.26 and 0.33 yuan.
Valuation and suggestion
The company's net profit is expected to grow at a compound growth rate of 28.9% in the next three years. The company's new business is expected to develop, covering Longji Machinery for the first time, giving Longji Machinery a neutral rating, and giving Longji Machinery (002363.SZ) a target price of 22 yuan, corresponding to 80 times Pmax E in 2016.
Risk
Sales fell short of expectations.