Summary of the three quarterly bulletins:
The company today released a report for the third quarter of 2015. Total revenue in the first three quarters was 2.422 billion yuan, an increase of 139.08 percent over the same period last year. The net profit attributed to shareholders of the parent company of the listed company was 56.9189 million yuan, an increase of 3,882.23 percent over the same period last year, and basic earnings per share was 0.19 yuan, an increase of 2835.38 yuan. The weighted average return on equity was 2.54%, an increase of 2.44% over the same period last year.
Main points of investment:
The acquisition integration was successfully completed, and the company's performance grew rapidly: in the third quarter, the company realized a net profit of 41.7 million yuan belonging to the common shareholders of the listed company. Shenzhen Lianmao, a subsidiary, significantly thickened the company's performance, an increase of 122.68% compared with the third quarter of last year. On the whole, the acquisition and integration of the company in the past two years can be said to be quite successful. After the completion of the acquisitions of Shenyue Optoelectronics and Shenzhen Lianmao, the performance commitments in the past two years have been met under the background of fierce market competition and great pressure on customer orders. this is not an easy achievement. After the completion of these two equity acquisitions, the current shareholding ratio of major shareholders is only a few percentage points higher than the original management of Shenyue Optoelectronics and Shenzhen Lianmao, which is evident in the company's determination to expand its industrial chain layout and reshape the enterprise structure.
Expand the whole mobile phone industry chain and create an one-stop solution supplier: the production of smartphone parts is gradually becoming the Red Sea. When it is difficult to support the original glass cover production, the company adjusts its strategy in time. Continuous acquisition of Shenyue Optoelectronics and Shenzhen Lianmao two high-quality companies to make up for their own shortcomings and integrate industrial resources. While doing a good job in the integration of traditional mobile phone window protection screen and touch control, it quickly cuts into the field of intelligent consumer electronics precision structural components, and obtains high-quality customer resources, which forms a good supplement and extension to the existing business. It has become an one-stop solution provider of zero components for smart consumer electronics.
Industry reshuffle has gradually entered a later stage, and the scale agglomeration effect is being reflected: since 2013, with the overall growth of intelligent terminals slowing down, the consumer electronics market has entered the Red Sea integration period, a large number of enterprises have been gradually replaced in the fierce competition in these two years, the company's industrial expansion effect is obvious, and the introduction of heavy customers such as Huawei, Lenovo, HTC, Asustek has also brought new growth for the company.
Give the company a buy rating: we expect that under the premise of the successful integration of Shenyue Optoelectronics and Shenzhen Lianmao, as well as the smooth progress of the company's own integration programs such as touch display and fingerprint recognition, the company is expected to achieve a net profit of 1.24 and 301 million in 15-16 years, corresponding to an EPS of 0.415 yuan and 1.007 yuan. The current share price is only 21 times valued for next year's results.
Risk hint: the Red Sea competition in the intelligent components market continues to intensify, the progress of reorganization and integration of Shenzhen Yue and Lianmao is lower than expected, and the emergence of new material technology replaces the company's existing products.