Event

On August 1, Yilida released its 2017 mid-year report. During the reporting period, the company achieved operating income of 606 million yuan, an increase of 40.73% over the same period last year. Net profit was 64.5288 million yuan, an increase of 6.39% over the same period last year, deducting 62.81 million non-net profit, an increase of 32.99% over the same period last year, and earnings per share was 0.15 yuan. At the same time, the results forecast for the first three quarters of 2017 shows that the company's net profit from January to September 2017 is expected to be 131 million yuan to 169 million yuan, compared with 93.6128 million yuan in the same period last year, an increase of 40.00% to 80.00% over the same period last year.

The revenue of air conditioner fan increased by 23.86% in the first half of the year, and the profit of air conditioner fan was not fully released due to the decline of gross profit margin.

The operating income of air conditioner fans in the first half of the year was 436 million, an increase of 23.86% over the same period last year, and the gross profit margin was 33.52%, down 6.28% from the same period last year. Limited to the increase in the price of raw materials, the company's gross profit margin is under pressure and has declined a lot, so its operating profit only increased by 4.29% over the same period last year. The company began to raise prices in May and is expected to recover its gross profit margin in the second half of the year. Commercial real estate sales data began to improve in the second half of last year, considering that the company's business has a lag of more than half a year compared with real estate, real estate led the company to improve revenue growth and gross profit margin in the second half of the year. It is estimated that the main business deduction non-net profit this year will reach 11-120 million.

The charger business achieved a combined net profit of 21.93 million in the first half of the year and is expected to accelerate growth in the second half of the year.

Tiecheng Information, a subsidiary, began to consolidate in February this year, with revenue of 82.3 million, net profit of 21.93 million and gross profit of 50.4% in the first half of this year. In the first half of the year, the sales of new energy vehicles were low before and after high, and the overall growth rate was relatively low. the company shipped about 100000 units in the first half of the year, with a market share of about 50%. As new energy vehicles enter the peak season in the second half of the year, it is expected that 350000 units will still be sold in the whole year. With the increase of lithium battery capacity of new energy vehicles, the charging speed requirements are getting faster and faster, and the proportion of medium and high power varieties such as 3.3KW and 6.6KW power of the company is also gradually increasing, so the unit price has gradually moved up to 1000-1200 yuan per unit. The charger business will also show a trend of simultaneous increase in quantity and price in the future, and the company will continue to grow with its leading position in the field of new energy chargers in the medium and long term. It is estimated that the net profit in 2017 will reach 90 million to 100 million.

Air conditioning fan business is shield, charger business is sword, both attack and defense, flexibility and bottom of performance.

With the completion of the transfer of Qingdao Ocean shares, the company will focus on air conditioning fans, new energy chargers and other double main business in the future. Air conditioning fan business has grown steadily in history, laying a solid foundation for the company's performance. New energy charger with the outbreak of new energy vehicle sales flexibility, at the same time with the trend of volume and price increase, as an offensive weapon in the company's business sector. The company is taking the air conditioner fan as the shield and the charger business as the sword to create a dual-main business development with both attack and defense, with growth flexibility and space on the top and the main business performance at the bottom.

Profit forecast and investment suggestion

It is predicted that the net profit of the company in 2019 will be 210 million yuan, 268 million yuan and 331 million yuan respectively, and the EPS will be 0.47,0.60,0.75 yuan respectively, and the corresponding EPS E will be 28.15X, 22.1x and 17.85X respectively. The company's air conditioning fan business is growing steadily, and new energy chargers benefit from huge room for future sales growth of new energy vehicles. Tiecheng Information, as the domestic leader in the new energy vehicle charger industry, has a market share of 45%, and there is no worry about the rapid growth of new energy business in the future. For the first time, the buy rating is given, with a target price of 17 yuan, or about 36 times PE in 2017.

Risk hint

Sales of new energy vehicles are not as expected; equity incentives are not in place; air conditioning fan business is declining.