Items:
According to the semi-annual report released by the company, the operating income in the first half of 2017 was 545 million yuan, an increase of 21.28% over the same period last year, and the net profit of shareholders belonging to the parent company was 77.35 million yuan, an increase of 12.19% over the same period last year.
Peace viewpoint:
The rise in coal prices has brought about a recovery in demand for coal machinery: Chuangli Group is one of the most powerful coal machinery manufacturers in China, with both revenue and profit growth in the first half of the year, which is in line with our previous expectations. Since the beginning of this year, domestic supply-side reform has continued to deepen, domestic coal prices have remained high, the profit situation of customers downstream of Chuangli Group has significantly improved, the willingness to purchase coal machinery has been significantly enhanced, and the company's performance has improved. At present, the company has sufficient orders on hand. during the reporting period, the company's whole machine and accessories business realized orders of 760 million yuan, an increase of 82% over the same period last year, providing a guarantee for the annual performance.
Participate in the big market, continue to increase the layout of the new energy vehicle industry chain: the company actively develops the second main industry and continues to increase the new energy vehicle industry chain. basically locked the battery, motor, electric control, charging pile and new energy vehicle operation of the whole industry chain layout. China Coal Machinery, the company's controlling shareholder, completed the acquisition of 57.108% of Huizhou Yineng Electronics on March 6, 2017 (at the same time, the company's second largest shareholder acquired 14.319% of Huizhou Yineng Electronics), and the company's layout in the field of new energy vehicles has been further improved. Yineng Electronics is a professional supplier of electric vehicle power management system with advanced technology and high market share. in the future, if Yineng Electronics is transferred to a listed company, it is expected to directly increase the company's performance.
Investment suggestions: supply-side reform will help the demand for downstream coal machinery to pick up, and the strategic layout of new energy vehicles will be further improved. We maintain the judgment that the company's performance inflection point is coming, and it is estimated that the EPS from 2017 to 2019 will be 0.27,0.45,0.55 yuan respectively, and the corresponding PE will be 31 times, 18 times and 15 times respectively. Maintain the recommended rating.
Risk tips: (1) the price of raw materials has risen sharply, resulting in a decline in gross profit margin; (2) the sales and promotion of PACK products of new energy vehicles are not as expected.
