Event: on August 14, 2017, the company held a semi-annual performance presentation meeting for 2017. The company's operating income in the first half of 2017 was 1.513 billion yuan, an increase of 29.21% over the same period last year. The net profit attributed to shareholders of the listed company was 313 million yuan, an increase of 13.58% compared with the same period last year.
Main points of investment:
The leading aluminum enterprises in Northeast China have obvious regional advantages.
China's aluminum industry market is mainly divided into East China, Northeast China and South China. Liyuan Refining is the second largest aluminum supplier in Northeast China after Zhongwang in China. Under the national policy of "revitalizing the Northeast", the Northeast has actively developed rail transit, automotive equipment, petrochemical and other industries, and the demand for aluminum profiles is very large and will be further expanded. Through years of deep ploughing in the market, the company has a large share of the North China market, and has been one of the comprehensive suppliers for the balanced development of domestic industrial aluminum profiles and construction aluminum profiles.
Promote the development of rail transit and improve the added value of products
The company currently uses a total of 26 extrusion production lines, which have the extrusion ability of large cross-section aluminum profiles and large curtain wall profiles in the field of rail transit. At the same time, the Shenyang company built by the company covers a total area of 1.73 million square meters, part of the deep processing workshop has achieved production and operation, and the installation of rail car equipment continues to advance. We will strive to produce one sample subway car and one urban rail car by December 2017.
Advanced production equipment and high comprehensive gross profit margin
The company's main products are industrial materials, decoration and construction materials and deep processing materials (that is, rail transit materials). The comprehensive gross profit margin of the three is 35.93%, which is at a high level in the industry. At present, the company has 9 deep processing workshops, with deep processing capabilities ranging from precision parts to super-large parts such as front and body, which greatly improves the deep processing ability of aluminum profiles. At present, the company also has a technologically leading extrusion production line with complete extrusion tonnage, which is the most advanced production equipment in the same industry, which further improves the production level of rail car body.
Investment suggestion
It is estimated that the company's EPS from 2017 to 2019 is 0.64,0.89 and 1.21 yuan, respectively, and the corresponding PE is 17.0x, 12.3x and 9.0x, respectively. The company's production capacity is less affected by the production restriction policy, and it is optimistic that the company, as the leading supplier and sales leader of the aluminum industry in the northeast of China, covers for the first time and gives a "recommended" rating.
Risk hint
1) the production of the rail transit project is not as expected. 2) the aluminum price fluctuates greatly.