Revenue and profits increased sharply compared with the same period last year. The operating income / net profit of the company in the first half of 2015 was RMB 631 million respectively, an increase of 215% and RMB 1235% respectively over the same period last year. The EPS of the company was 0.7721 yuan, of which Q2 realized RMB EPS0.53 in a single quarter, which was in line with the previous company announcement and market expectations. The company's gross profit margin in the first half of the year was 48.71%, an increase of 20 percentage points over the same period last year, mainly due to a substantial increase in sales of complete sets of machinery and equipment (special smelting equipment and complete sets of equipment for waste heat and waste pressure power stations) and a higher gross profit (50.84%). At the same time, the distribution plan for the first half of 2015 has been announced: it is proposed to give away 5 shares for every 10 shares and increase 10 shares.
The strategic transformation has been successfully implemented and the layout of overseas business has been carried out in an all-round way. Since 2014, the company has transformed from power equipment manufacturing to power infrastructure construction, mineral operation and industrial park investment, development and operation of the whole industry chain, and actively expand the layout of overseas business. Relying on the company's project in the Nickel Iron Industrial Park in Indonesia, the company has developed overseas sales of complete sets of electric power equipment and special smelting equipment, resulting in a substantial increase in the company's main business income; in the first half of the year, the overseas sales of complete sets of machinery and equipment reached 594 million yuan, accounting for 94% of the main business income. In the first half of 2015, the company's new overseas machinery and equipment orders of US $100 million will be delivered in batches during the year; in addition, the remaining batches of US $146 million in 2014 orders will also be completed in 2015. we expect the company's overseas business to continue to contribute to performance.
To create a new development model for Chinese enterprises to "go global". The company takes electric power construction as the core, takes the merger and acquisition of local mineral resources as the starting point, invests in the establishment of local industrial parks for deep processing of mineral resources, and the whole industry chain is a mutually beneficial and win-win industrial ecology. At present, the company has acquired many mineral resources in Indonesia, such as coal mine, manganese ore and nickel ore, and has begun to build docks, roads, power plants and other infrastructure, thus realizing the overall packaging and transportation of domestic production capacity, technology, capital and management to overseas, driving the domestic market with foreign market demand. The company promotes international production capacity cooperation by going out of the whole industry chain, creating an industrial development model for the overseas development of Chinese enterprises, which is a positive exploration and effective implementation of the "Belt and Road Initiative" going out strategy.
Risk factors: overseas market operating environment risk; Indonesia industrial park construction schedule is not up to expectations; exchange rate fluctuation risk.
Profit forecast, rating and investment rating. According to the current on-hand order execution of the company, it is estimated that the annual revenue of the company in 2015-16-17 is 1.08 billion yuan, respectively, and the net profit attributable to the owner of the parent company is 389 Plus 552 million, and the corresponding EPS is 1.27, 1.80 and 12.08, respectively (not considering the additional issuance and reporting for the time being), and the current price is 79.49 yuan, corresponding to PE63/44/38x. According to the average P/E45x valuation of the comparable company in 2016, the company's current share price is basically in line with the valuation of its existing assets, covering it for the first time and giving it an "overweight" rating. However, as the company is still suspended due to major issues not announced, we will not give the company the target price for the time being.