Matters:
In the first half of 2017, the company achieved revenue of 495 million yuan, an increase of 31.30% over the previous year; net profit after returning to the mother was 16.15 million yuan, an increase of 12.97% over the previous year. The company's basic earnings per share are 0.05 yuan, and the company's performance is in line with our expectations.
Ping An's point of view:
The share of the main business market increased, and overseas markets were actively explored: during the reporting period, the company achieved revenue of 495 million yuan, an increase of 31.30% over the previous year, and net profit after returning to the mother was 16.15 million yuan, an increase of 12.97% over the previous year.
Driven by the peak of IDC computer room construction and the Belt and Road project in the first half of the year, downstream demand in the intelligent power equipment industry chain rose slightly. The company continued to stabilize and expand the domestic core industry market. The main business, the low-noise diesel generator business, achieved revenue of 471 million yuan, an increase of 39.36% over the previous year; gross margin reached 21.05%, a year-on-year decrease of 1.27 percentage points. During the reporting period, the company maintained a high market share among the three major telecom operators, accelerated cooperation with data center general contractors such as Huawei and ZTE, expanded the data center computer room backup power market, and increased its market share. In terms of overseas markets, the company and Ted have used synergies to share procurement platforms to effectively reduce procurement costs; the Singaporean subsidiary has stepped up efforts to expand gas unit business in Southeast Asia, the Middle East, Africa, Australia, South America, Europe and other regions.
800 million dingding increased the codec logistics vehicle business and participated in Jinghong Technology to improve the three-power vehicle business segment: the new energy vehicle business segment. The company has now set up subsidiaries in Shanghai, Beijing, Tianjin, Hubei, Fujian, Anhui, Guangdong, etc., to develop new energy logistics vehicle leasing business on a territorial basis, put into operation more than 500 new energy vehicles, provide new energy logistics vehicle leasing services for SF Express, EMS, Yuantong, Yunda and other companies, and reached strategic cooperation agreements with Cainiao Logistics and other customers. In order to further consolidate its first-mover advantage, the company launched a private offering during the reporting period. It plans to raise no more than 8126 million yuan to invest in new energy logistics vehicle operation projects. It plans to operate and service 11,000 new energy logistics vehicles in various cities across the country from 2017 to 2019, making it one of the largest NEV operators in China. At the same time, in order to re-establish a dual advantage on the core manufacturing side and the terminal market side, in August 2017, the company announced a capital increase of 51.25 million yuan to obtain 20% of Jinghong Technology's shares. Its original shareholders promised that Jinghong Technology's audited net profit after tax in 2018 and 2019 would not be less than 20 million yuan and 30 million yuan respectively. Jinghong Technology is mainly engaged in the production of power battery packs, battery management systems, vehicle controllers and the provision of power system assemblies. At present, it has completed the development of the main logistics models, obtained vehicle announcements, and entered the recommended list of new energy vehicles and the tax-free vehicle catalogue; many other micro, micro, and light truck models are in the process of being developed.
Profit forecast and rating: Maintain the company's EPS for 17-19 at 0.24, 0.28, and 0.35 yuan, corresponding to the closing price of PE on August 28 at 62.1, 51.6, and 41.4 times, respectively. The implementation of the new policy of subsidizing 30,000 kilometers in 2017 brought new challenges to the development of the electric logistics vehicle market. After nearly half a year of adjustments and preparations, domestic e-logistics vehicle production and sales have been on an accelerated upward trajectory since June. We believe that after initial barbaric growth, the industrialization process of e-logistics vehicles is gradually getting better. The gap between the product side and the demand side is bridging at an accelerated pace. Companies with first-mover advantage and brand reputation are expected to benefit deeply from the growth of e-logistics vehicles and maintain a “recommended” rating for the company.
Risk warning: 1) the risk that the policy falls short of expectations; 2) the risk that electronic logistics vehicle sales fall short of expectations.