The company released its semi-annual report for 2017, with a total operating income of 433 million yuan in the first half of 17 years, an increase of 28% over the same period last year, a net profit of 64.97 million yuan, an increase of 24% over the same period last year, and a non-net profit of 61.34 million yuan, an increase of 33%. At the same time, the performance forecast for the period from January to September 2017 is issued, and the net profit from January to September is expected to be 85 million yuan to 100 million yuan, an increase of 13.2% over the same period last year. 33.1%.
Revenue and profits increased steadily. In the first half of 2017, the company achieved operating income of 433 million yuan, an increase of 28% over the same period last year, and a net profit of 64.97 million yuan, an increase of 24% over the same period last year. Thanks to the rapid expansion of domestic business, revenue and net profit have increased steadily.
Accounts receivable increased and rates remained stable. Accounts receivable totaled 161 million yuan, up 16 percent from the end of 2016, and the growth rate was less than the growth rate of income. The net cash flow from operations was 37.17 million yuan, down 10 percent from the same period last year.
The sales and management rates decreased slightly compared with the same period last year, while the financial expenses increased to 3.97 million yuan due to exchange losses. on the whole, the rates remained stable.
The gross profit margin of submersible pumps for wells, the main product, increased by 2%. Well submersible pumps have always been the company's main business. In the first half of the year, the revenue of well submersible pumps was 350 million yuan, an increase of 34% over the same period last year, accounting for 81% of the total income. In terms of gross profit margin, although steel and other costs in the first half of the year, the gross profit margin of well submersible pumps was 31.7%, an increase of 2.5 percentage points over the same period last year, mainly reflecting the scale effect.
Increase domestic business development efforts. The company has always focused on export OEM OEM production, accounting for more than 90% of export revenue before 2015, but in the past two years, the company has paid special attention to the construction of its own brand and the expansion of the domestic market, and the scale of domestic business has increased rapidly. The domestic income in the first half of the year is 84.28 million yuan, accounting for 19.5%. We expect the proportion of the company's domestic business to further increase in the future.
The fund-raising project is put into production and the expansion of the scale is conducive to further reducing the cost and increasing the efficiency. The company's annual production of 1 million submersible pumps has been put into production at the end of 2016, and 2 million submersible pumps are also under construction. The increase in production scale will help to further reduce procurement costs and increase product gross profit margin.
Give a "prudent recommendation-A" investment rating. We predict that the EPS of Dongyin shares from 2017 to 2019 will be 0.60.75 EPS 0.83 yuan, corresponding to the PE 34-28-25 times, covering for the first time, giving "prudent recommendation".
Risk hint: the progress of domestic business development is lower than expected, and the cost of raw materials continues to rise.
