Overview of events:
The company publishes its 2012 annual report. The company's operating income in 2012 was 2.02 billion yuan, an increase of 52.83% over the same period last year; the net profit attributed to the owner of the parent company was 105 million yuan, an increase of 1.87% over the same period last year; and basic earnings per share was 0.14 yuan, unchanged from the same period last year. Based on the total share capital of 755 million shares, the company distributes cash of 0.42 yuan (including tax) to all shareholders for every 10 shares.
Event analysis:
The acquisition has achieved results, and revenue has increased significantly. The company's main business increased by 52.83%, mainly due to the acquisition of a 97.5% stake in Shanghai Deco Electronic Instruments Co., Ltd at the end of 2011, resulting in a significant increase in the company's business income in the automotive electronics sector in 2012. After the adjustment of the product structure, the revenue of the company's automotive instrument products increased by 1088.76% in 2012 compared with the same period last year, which has become the main driving force of revenue growth. The lower growth in net profit is due to a significant increase in fees during the period as a result of mergers and acquisitions of new companies.
Strengthen market technology and strengthen internal control. The company has set up a marketing department to establish a market sharing platform and information platform through the integration of market resources, so that the existing market can interact, jointly develop and serve major users. At the same time, prepare for the establishment of Feile Automotive Electronics R & D Center, build a company-level R & D platform, so that the company to the direction of technology-leading enterprises to take a solid step.
We will continue to acquire and merge to strengthen the main industries. Following the acquisition of Deco Electronic Instruments at the end of 11 years, the company acquired a 20% stake in Shanghai Rijing Instruments Co., Ltd. In recent years, the company has gradually stripped off unfocused industries, invigorated existing assets, concentrated effective resources, and developed main industries. At present, the company's automotive electronics, automotive instrumentation, automotive wiring harness three core main business has begun to take shape.
Profit forecast and investment advice:
Profit forecast and investment advice. As the earliest electronic listed company in China, the company has a leading advantage in resources and scale. After the integration and reorganization in recent years, the company has gathered superior resources to establish three main plates with automotive electronics, automotive instrumentation and automotive wiring harness as the core. We expect that with the completion of the integration of the company's product structure, it is expected to usher in a new period of growth with the development of the automobile industry. Considering the uncertainty of the company's integration and the development of the automobile industry, we give the company a "neutral" investment rating.
Risk Tips:
Domestic car purchase restrictions and other policy risks that are unfavorable to the automobile industry.
The risk of rising raw material prices and labor costs.
