Main points of investment:
The company's 2017 mid-year report was disclosed. In the first half of 17 years, the company achieved operating income of 269 million yuan, an increase of 48.54% over the same period last year, and a net profit of 42.23 million yuan, an increase of 15.76% over the same period last year, deducting 32.83 million yuan of non-return net profit, an increase of 66.43% over the same period last year.
Revenue increased by 48.54% over the same period last year, net profit increased by 15.76%, and gross profit margin decreased slightly. In the first half of 17 years, the company achieved operating income of 269 million yuan, an increase of 48.54% over the same period last year. Of this total, the income of energy dispersion XRF was 120 million yuan, an increase of 47.50% over the same period last year, and that of wavelength dispersion XRF was 4.21 million yuan, down 29.60% from the same period last year. In the first half of 17 years, the company's comprehensive gross profit margin was 55.51%, down 0.15 percentage points from the same period last year. The company's sales expenses increased by 19.45%, management expenses increased by 48.69%, and financial expenses decreased by 25.75%. The sales expense rate is reduced, and the management expense rate and financial expense rate are increased. The company's investment income was 898000 yuan, down 72.49% from the same period last year, mainly due to the decrease in income from wealth management products. The non-operating income and expenditure was 650000 yuan, a decrease of 92.61% over the same period last year, mainly due to the increase in fine expenditure.
What to watch: the main focus in the future is to serve as the leader of domestic X-ray testing instruments and to create an analysis and testing industry chain + environmental protection health platform. (1) the leader of chemical analysis industry: the company is the leader of domestic chemical analysis industry, specializing in the R & D, production, sales and related technical services of high-end analytical instruments and application software based on spectrometer, chromatograph and mass spectrometer. (2) carry out industrial mergers and acquisitions and build an analysis and testing industry chain + environmental protection health platform: during the reporting period, the company acquired 55.42% of the shares of Shanghai Panhe Scientific Instruments Co., Ltd. The main business of Panheke instrument is divided into two parts: online environmental protection based on VOCs online monitoring and laboratory system based on sample pretreatment. The acquisition of Panheke instrument will enable the company to quickly cut into the VOCs online monitoring business and enrich the company's product line in the field of environmental monitoring. In 2016, the company acquired 100% equity interest in Shanghai Bessie Biotechnology Co., Ltd., acquired 40% equity interest in Jiangsu National Test and testing Technology Co., Ltd., and increased its capital to enter the field of real-time in vitro diagnosis and third-party testing services. at the same time, it has large-scale comprehensive standard testing laboratories such as chemistry, environment, public health and consumer goods, and is also a China National Metrology Certification (CMA) accreditation laboratory.
Profit forecast and valuation. It is estimated that the company's net profits belonging to the parent company in 2017 and 2018 will be 1.02 yuan and 135 million yuan respectively, and the corresponding EPS will be 0.22,0.29 yuan respectively. Compared with the valuation of companies in the same industry and the layout of the company's products in the field of health and environmental governance, the company will be given a buy rating of 45 times PE in 2017, corresponding to the target price of 9.90 yuan.
Risk hint. (1) Tianrui Environmental performance commitment falls short of expectations. (2) the slow progress of environmental monitoring policy leads to the demand growth rate of related products of the company falling short of expectations. (3) shortage or loss of core technical personnel. (4) the competition in the industry intensifies and the gross profit margin decreases.
