Main points of investment:
Active development of new customers and improvement of customer structure, and substantial increase in financial expenses 1) the company's performance increased significantly in the first half of the year, mainly due to: on the one hand, the company's active development of new customers led to a 16.62% increase in crankshaft sales in the same period. at the same time, the company's customer structure improved (the proportion of cars and light vehicle crankshafts increased by 14.18 percentage points) to the average price continued to rise. Together, these make the main business income increase by 22.67%. On the other hand, the company has repaid 138 million yuan of interest-free loan to the controlling shareholder Haowu Electrical Machinery (financial expenses are calculated in a fair manner in the previous period and included in the capital reserve), plus cash deposit interest and financial income, the financial expenses have decreased significantly. 2) at present, the plant construction of the "crankshaft production line" project invested by Pengxiang, a major shareholder, has been basically completed, and the equipment has been relocated, installed and debugged one after another. According to the promise of Haowu Mechatronics, the injection of "crankshaft production line" into listed companies is expected to be realized soon. As the company actively develops new customers (successful development of Guangzhou Automobile, etc.), adjusts product structure and puts into production new production lines with high automation rate, the company's business performance is expected to continue to improve in the future.
The future will remain the same. 1) Haowu, a major shareholder, has excellent qualifications for mechanical and electrical assets. In addition to benefiting from the development and growth of the controlling shareholder property Group, the company may become the capital platform for the securitization of the automotive electromechanical plate of the property group; 2) according to public information, the company will focus on the automobile post-service market, expand the company's main business by means of mergers and acquisitions, cultivate new industries and increase new profit growth points. At present, the company has initiated with Binkai Investment, Zhuolang Technology and Huixin Chuangfu to set up a technology-based SME venture capital fund-Tianjin Fortune Jiaji Investment Partnership (limited partnership), which will be introduced into the Ministry of Science and Technology to guide the fund. in the future, we will mainly invest in advanced manufacturing, electronic information, new materials, high-tech services and other emerging industries. In terms of policy, the CSRC intends to cancel the administrative examination and approval of major asset restructuring in addition to backdoor listing, as well as the addition of M & A funds and other M & A payment and financing instruments for listed companies. This will provide convenience and policy guarantee for the company to smoothly carry out capital operation to expand the company's main business and enhance the company's profitability. 3) the actions of Xinjiang Silicon Valley Paradise continue: Xinjiang Silicon Valley Paradise bought 1833 million shares of the company from the secondary market on June 25, and signed a three-year Strategic Consulting and M & An Integration Service Agreement with Silicon Valley Paradise Group on December 11. On December 24, the second shareholder, Xinjiang Silicon Valley Paradise, increased its stake in the company by 4.2563 million shares due to its optimistic development prospects, accounting for more than 5% of the total shareholdings, becoming a related party, which is conducive to closer cooperation between the company and Xinjiang Silicon Valley Paradise in the future. To sum up, we believe that with the strong support of the joint venture capital fund and Silicon Valley Paradise, it is worth looking forward to the future mergers and acquisitions and expansion of the main business around the post-service market in order to achieve great-leap-forward development.
Maintain the profit forecast unchanged, maintain the "overweight" rating we adhere to the previous judgment: the company's crankshaft main business performance is a high probability event. At the same time, the revision of executive compensation system linked to ROE and market capitalization shows that the company attaches importance to market-oriented management, improve company performance and enhance investor confidence. In the first half of the year, the company's performance stabilized and rebounded as we expected, but the growth rate was slightly higher than expected. Therefore, we raise our profit forecast: in 2015-17, the company is expected to achieve operating income of 4.36x523xpx 654 million yuan, an increase of 7.52% over the same period last year, and a year-on-year increase of 20x25%. It is recommended that the net profit of the homed parent is RMB 0.27max, an increase of RMB 0.390 million, a year-on-year increase of 47.46pm, 12.81pm, 28.37%, and a corresponding EPS of 0.06max, 0.07max, 0.09 yuan per share, respectively.
Risk hint: mass production of new products and new market development are lower than expected; cost growth during the period is higher than expected.
