Main points of investment:
The net profit of homecoming in the first half of 2017 is expected to increase by 30% and 40% compared with the same period last year. The company announced its performance forecast for the first half of 2017, which is expected to achieve a net profit of 96.85 million yuan to 104.3 million yuan, an increase of 30% and 40% over the same period last year. Mainly from: 1) the intelligent manufacturing and power distribution sector of the company expanded well, and the revenue scale continued to expand; 2) the contribution of non-recurrent profit and loss was 21.72 million yuan, compared with 7.07 million yuan in the same period last year.
Yongqian Mechatronics: lithium electricity and other fields bring attention. Yongqian mechanical and electrical main manipulator and production line manufacturing, downstream demand from the intelligent transformation of customers. The company is the leader of domestic manipulator, with a market share of more than 70% in the field of manipulator. The company's business has gradually expanded from the automotive field to electrical equipment, diapers, environmental protection, building materials, lithium electricity and other fields, non-automobile business has accounted for about 50%. The new energy field has opened up the focus for the company in recent years, and the company has entered the mainstream manufacturers such as Guoxuan Hi-Tech, with orders of nearly 100 million yuan in the past 16 years. It is expected that the new energy field will still be a relatively large growth point for the company in the next few years.
Guanzhi: side circumference to the bottom plate, door cover, total development, downstream customers rapid expansion. The company's main automobile welding production line, the growth mainly comes from: 1) with the side circumference of the advantage field as the breakthrough point, the company's welding production line has been expanded to the whole field of floor, side circumference and final assembly; 2) the rapid expansion of customers, the company's original main customer is SAIC Volkswagen. Now it has been gradually expanded to Changan Ford and other manufacturers.
Hua Xiao: the synergistic effect with Yongqian and Guan is significant. The company's main AGV products, the original main customers are Dongfeng Nissan, Dongfeng Renault, Zhengzhou Nissan, Nissan global factory, through cooperation with Yongqian, Guanzhi, has entered a number of domestic mainstream manufacturers, we expect Yongqian and Guanzhi to bring tens of millions of orders to Huaxiao this year. At the same time, based on the application of products and the situation of the industry, we expect that on the basis of the automotive industry, Huaxiao will also enter many other industries such as electronics, power, machinery and so on.
Strategic layout in the field of artificial intelligence. In March, 17, the company invested 1.1 billion yuan to build the intelligent robot and artificial intelligence industrial base of the University of Science and Technology, and carried out industry-research cooperation with Fudan University, strategic layout of "artificial intelligence + health" and other fields, mainly settled in intelligent image reading system and other fields. The layout of artificial intelligence of the company is of great strategic significance, and the landing of project industrialization in the future is expected to bring great impetus to growth.
Profit forecast and investment advice. It is estimated that the company's operating income from 2017 to 2018 will reach 2.138 billion yuan and 2.555 billion yuan, and the net profit of returning home will reach 350 million yuan and 436 million yuan, up 26.61% and 24.42% respectively over the same period last year. The earnings per share are 0.48 yuan and 0.60 yuan. Give 2017 55 times the valuation of PE, corresponding to the price of 26.4 yuan per share, increase the rating.
Risk factors. The risk of industrial integration falling short of expectations.