Events:

The company's first-half performance was attributed to the net profit of listed companies of 2776-34.82 million yuan, an increase of 10% 38% over the same period last year. In the second quarter alone, the net profit of returning to its mother was 2244-29.5 million yuan, an increase of 9.75% and 44.53% over the same period last year.

Main points:

1. Downstream recovery drives upstream equipment demand to boost the company's performance.

In the first half of 2007, affected by the pick-up of investment in the manufacturing industry, there was an obvious recovery in the lower reaches of the industry, and the increasing demand for packaging materials led to the demand for related equipment upstream. According to a report released by market research firm Researchand Markets, the packaging materials industry is expected to grow at a compound annual growth rate of 5.8% from 2016 to 2018. In the context of the recovery of downstream demand, the company's sales of packaging automation machinery are expected to grow significantly, thus boosting the company's performance.

two。 Technological advantages significantly strengthen the company's performance expectations.

The company's multi-layer co-extrusion technology breaks the monopoly in Europe and America, and 11 key technologies lead the development of the plastic machinery industry in the future. A number of products achieve the goal of localization and lead the formulation of industry standards, with obvious advantages in core technology. The company carries out technical cooperation with a number of multinational corporations, including well-known R & D enterprises such as Siemens, Dow, DuPont, Bolu, Shulman and so on. The global technological layout is gradually taking shape, and its technological advantages are expected to be maintained for a long time, which is good for future performance.

3. The diversification strategy of the layout of the industry assisted by the technological transformation of the far East

The subsidiary Shantou far East Light and Chemical equipment Co., Ltd. has made great efforts to promote the technological transformation with intelligence, innovation, high efficiency and green as the core and achieved good results, and successfully launched intelligent precision coating equipment and environmental protection thermal energy recovery equipment. The products have successfully entered the optics, lithium battery, new energy and other industries, and are highly recognized by the industry and customers. In addition, the BOPP/BOPET double-drawing technical renovation project is progressing smoothly, and the optical substrate film has been successfully produced, which can be developed in the future.

4. Overseas market promotion to increase international market share

The company, together with global high-end materials strategic partners, actively carried out effective market promotion in new materials and material applications, and successfully participated in important exhibitions such as Germany's K-show (entering the International Pavilion for the first time) and China Rubber and Plastics Exhibition. The market has been further developed, and orders at home and abroad have achieved rapid growth.

Jinming Seiki has been one of the brand representatives of Chinese professional film equipment abroad, and has been successfully exported to more than 40 countries and regions, including the United States, Japan, Israel, Russia, Central Europe, North America, the Middle East and Southeast Asia.

5. Industry demand boosts the future development of the company.

In the terminal film industry where the company is located, the market demand is gradually increasing, and the high-end multi-functional film market is gradually opening up with the improvement of the national quality of life. Worldwide, the demand for high-end multi-functional film products in the promotion of new materials, new energy devices, medical, military and precision instruments is increasing, and the industrial research of high-end composite intelligent films such as optical film, lithium battery separator and environmental protection film is gradually deepening in the future. The high-end multi-functional film market will gradually open, and the future industry competitiveness will be reflected in advanced technology, process accuracy, intelligent level, market coverage, comprehensive services and so on. Stable industry demand is expected to drive the company's business development and continue to be good for future performance.

6. lay out the rehabilitation medical market and open up the diversification strategy.

The company actively laid out the rehabilitation robot market and formally signed the Cooperation Agreement on the Joint Research Center of Intelligent Rehabilitation Robot jointly established by Tsinghua University (Department of Mechanical Engineering) and Guangdong Jinming Precision Machinery Co., Ltd in 2015. in December of 2016, the company and Tsinghua University formally signed the contract for the Development (entrustment) of the industrialization Technology of Neural Rehabilitation Robot. Put the industrialization of the upper and lower limb neural rehabilitation robot project on the agenda. At present, there are more than 86 million disabled people and nearly 200 million elderly people in China, and there is a huge demand for rehabilitation robots. According to relevant data, the market size of rehabilitation robots is expected to grow from US $220 million in 2014 to US $3.2 billion in 2021, with an average annual compound growth rate of 46.6%. Among them, the size of the exoskeleton robot industry alone will soar from US $1 6.5 million in 2014 to US $2.1 billion in 2021, with an expected average annual compound growth rate of 99.8%. Jinming precision machine is an early layout in China, which has occupied a certain first-mover advantage in technology. The pre-layout of the rehabilitation robot market is of great significance for the company to achieve industrial transformation and upgrading to a certain extent.

Profit forecast and investment rating:

We estimate that the company's operating income from 2017 to 2019 will be 487 million yuan, 635 million yuan and 851 million yuan respectively, and the net profit will be 51 million yuan and 0. 5% respectively. 6.6 billion yuan and 88 million yuan, EPS 0.21 yuan, 0.27 yuan and 0.36 yuan respectively, corresponding to PE 67X, 51x and 38X respectively, maintaining the "recommended" rating.

Risk Tips:

Market style switch valuation fell, the company's market expansion fell short of expectations