The 17 semi-annual report announced that the net profit was 51.9373 million yuan and YOY + 12.38%.
The company released its semi-annual report for 2017. in the first half of the year, the company realized operating income of 699 million yuan, an increase of 29.54% over the same period last year, a net profit of 51.9373 million yuan, an increase of 12.38% over the same period last year, a net profit of 5201.65 yuan after deduction belonging to shareholders of listed companies, an increase of 17.00% over the same period last year, and an EPS of 0.099 yuan, an increase of 12.50% over the same period last year. The company's "electric power sets and services + new energy" two-wing layout has been initially adjusted, equipment and services to achieve coordinated development, the company has initially entered the fast lane of accelerated development.
The industrial chain of power equipment continues to extend, with comprehensive coverage of primary and secondary equipment.
Since 2015, the company has continuously developed new products on the basis of the original high voltage switch business, successively launched combined electrical appliances, complete sets of electrical appliances, distribution automation systems, substation automation systems, photovoltaic bus boxes and other products, and successfully opened the market. In the first half of 17 years, the overall revenue of the power transmission and transformation equipment sector reached 238 million, down 28.42% from the same period last year, mainly due to the mismatch of some orders. The company has plenty of orders on hand, and equipment sales are expected to turn back in the second half of the year. The company's product line extends, and then opens the new equipment market to realize the complementary product structure, at the same time, it also lays a good hardware foundation for the company to further carry out the design and general contracting business.
The income scale of the new energy sector has been enlarged rapidly, and the increase in self-sufficiency rate has led to a rise in profit margins.
The company bought Huagang Electric Power with 300 million yuan in cash in 16 years and merged in August 16, so the income and profit increased obviously in the first half of this year. Huagang Electric Power achieved 208 million yuan in income and 33.89 million yuan in net profit in the first half of this year. During the reporting period, the company's photovoltaic business realized the grid connection of two distributed power station projects, Dinghui and Sanchao, with revenue of 283 million yuan, an increase of 56% over the same period last year, and a gross profit margin increase of 12.29 pct to 22.66%. The improvement of profit margin was mainly due to the conversion of the project to distributed photovoltaic and the production of supporting equipment such as catchment boxes. With the closer cooperation between Huagang Electric Power and the company's traditional equipment production, it is expected that the company's new energy business will maintain the rapid growth in recent years in the next 2-3 years.
The business layout of new energy vehicles comes first, and the profit contribution is expected to increase after 18 years.
In the first half of the year, the company's new energy vehicle business is mainly based on industrial layout, and a joint venture with Yaoding Automation to set up a ride-hailing operation company and a recharging network operation company, respectively, with a shareholding of 60% and 40% respectively, in which the company focuses on ride-hailing operation business. Yaoding focuses on recharging network operation business. The revenue of high-voltage distribution assembly business reached 16.7 million yuan in the first half of the year, an increase of 80% over the same period last year. With the gradual normalization of the catalogue of new energy vehicles, the sales of distribution assemblies in the second half of the year are expected to far exceed those in the first half of the year.
The business is not on track, the development of the two wings is expected, and the "buy" rating is maintained.
It is predicted that the company's net profit for 17-19 years is 1.70,1.99,259 million yuan respectively, the corresponding EPS is 0.32,0.38,0.49 yuan, and the dynamic PE is 26,22,17 times. The business considering the general contract and operation of the company's power grid engineering, the operation of new energy automobile parts and charging facilities are all key domestic investment areas during the 13th five-year Plan period, and are expected to achieve an average annual growth rate of more than 25%, respectively. We are optimistic about the development prospects of the company's two main businesses and maintain the "buy" rating.
Risk hint: the growth rate of power grid investment is not up to expectations, and the sales of new energy vehicles are not up to expectations.