Main points of investment
Event: the company released its semi-annual report that its operating income in the first half of 2017 was 606 million yuan, an increase of 40.73% over the same period last year; the net profit of shareholders belonging to listed companies was 64.5288 million yuan, up 6.39% from the same period last year; and the non-net profit of shareholders belonging to listed companies was 62.8053 million yuan, an increase of 32.99% over the same period last year.
The growth of the company's traditional main business is obvious, and the information income of Tiecheng is listed together. From a sub-industry point of view, the revenue of the wind turbine manufacturing industry increased by 24.03% over the same period last year, with an increase of 18.82 percentage points over the same period last year. However, the gross profit margin fell 6.28 percentage points compared with the same period last year, mainly due to the rapid rise in the price of galvanized sheet, the main raw material. Among the products, the growth rate of cold chain fans is the most eye-catching, reaching 32.31%, mainly due to the strong demand for downstream cold chain equipment. The subsidiary Tiecheng information income consolidated table, the charger manufacturing industry achieved an income of 82.3043 million yuan in the first half of 2017, the quality of the business is excellent, and the gross profit margin is as high as 50.49%.
Central air conditioning fan faucet, deeply bound to front-line customers, enjoy the recovery of the industry. The company is the largest supplier of central air conditioning fans in China, with a market share of more than 20% for wind turbines and more than 50% for small fans. The company has excellent technology and has obtained a number of certifications. downstream customers are mainly York, Daijin, Kelly, Dunhan Bush, Gree, Midea and other first-tier enterprises at home and abroad. In the first half of 2017, China's central air conditioning market reached 43 billion yuan, an increase of 22.9% over the same period last year. As the industry leader, the company will benefit from the overall recovery of the industry.
Acquire Tiecheng information, increase performance, and open up the blue ocean of new energy vehicles. In 2016, the company acquired Tiecheng Information and began to consolidate it in January 2017. its performance commitments from 2016 to 2018 were 50 million yuan, 65 million yuan and 80 million yuan respectively. In 2016, Tiecheng Information deducted 60.2263 million yuan from non-net profit, exceeding the performance promise. Tiecheng information market share is nearly 15%, and downstream customers include Jianghuai, Guangzhou Automobile, Xiamen Jinlong, Zhongtai, Kangdi, etc., and are expected to develop in-depth cooperation with BAIC and SAIC to further expand market share.
Equity incentive is bound to the core backbone, and the unlocking conditions are harsh. In September 2015, the company issued an equity incentive plan to grant 3.99 million shares to 92 incentive targets at a price of 6.62 yuan per share. The first and second unlocking conditions of equity incentive have been reached, and the third unlocking requires revenue of 1.104 billion yuan in 2017. there is a strong certainty for the company to achieve the assessment target.
Valuation and rating: the company is the leader of domestic central air conditioning fans and enters the new energy vehicle industry. It is estimated that the EPS of the company in 17-19 will be 0.50, 0.63 and 0.84 yuan respectively, and the previous share price 26.7x/21.2x/15.9x will be given an "overweight" rating.
Risk tip: the development of fan business is lower than expected, the development of new energy vehicles is not as expected, and the promotion of new products is not as expected.
