Main points of investment
Matters: according to the semi-annual report released by the company, the operating income in the first half of 2017 was 213 million yuan, an increase of 22.03% over the same period last year, and the net profit of shareholders belonging to the parent company was 29.97 million yuan, an increase of 18.74% over the same period last year.
Peace viewpoint:
Performance recovery is in line with expectations: we have previously judged that the domestic film machinery market is picking up, and the company's performance grew steadily in the first half of the year, in line with our expectations. In terms of products, the company's revenue from film blow molding machines in the first half of the year was 118 million, an increase of 27.66% over the same period last year; the revenue of complete sets of film / paper processing equipment was 19.86 million yuan, an increase of 24.76% over the same period last year; it is worth noting that the company was involved in film sales in the first half of the year and realized revenue of 30.69 million yuan.
Rely on equipment advantages to get involved in high-end film production and sales: we believe that the company, as the leader of domestic high-end film equipment, has technical and cost advantages to get involved in high-end film sales. One of the company's non-public offering projects is the "Special Multi-function membrane Wisdom Factory Construction Project". After completion, it will achieve a production capacity of 12000 tons of high-end PE film, 15000 tons of ultra-multilayer barrier co-extruded film, 5000 tons of high-end barrier sheet and 1000 tons of other special functional plastic film. after reaching production, it can achieve annual business income of 580 million yuan and net profit of 78.39 million yuan. Under the background of consumption upgrading, the domestic market has a growing demand for high-end film, and there is a great demand for high-end film in different application fields, such as industry, commerce, construction, agriculture and so on. Getting involved in high-end film sales has a far-reaching impact on the company. In the future, the proportion of high-end film revenue is expected to gradually increase, and significantly improve the company's performance.
The layout of rehabilitation robots in advance has a broad prospect: "Health Jinming" is one of the important strategic directions for the company's future development. In July 2015, the company and Tsinghua University signed the Agreement on the Joint Research Center for Rehabilitation Robots jointly established by Tsinghua University and Guangdong Jinming Precision Machinery Co., Ltd., marking the company's official entry into the service robot and medical and health industry. On May 31, 2017, the company signed an agreement with Lingnan Investment and Shanghai Renxin. The company shares in Shanghai Renxin with 5 million yuan and holds a 12.50% stake in Shanghai Renxin. Shanghai Renxin's main business is to provide comprehensive solutions for the pension and health industry, including research and consulting, planning and design, operation and management, personnel training, promotion and promotion. In the future, Shanghai Renxin is expected to become an important front position to open the market channel of the company's rehabilitation robot products.
In December 2016, the company formally signed the contract for the industrialization Technology Development (entrustment) of Neural Rehabilitation Robot with Tsinghua University, which put the industrialization of the upper and lower limb neural rehabilitation robot project on the agenda.
At present, there are more than 86 million disabled people and nearly 200 million elderly people in China, and there is a huge demand for rehabilitation robots in the future. Jinming Seiki is a company that laid out rehabilitation robots earlier in China, and it has occupied a certain first-mover advantage in technology.
Investment advice: the company's main film machinery sales are gradually picking up, the company relies on its own advantages to enter the high-end film market, is expected to significantly improve the company's profitability. We judge that 2017 will be an important turning point for the company. The EPS of the company from 2017 to 2019 is 0.34,0.44,0.58 yuan respectively, and the price-to-earnings ratio of the previous share price is 44 times, 34 times, and 26 times respectively, maintaining the "recommended" rating.
Risk tips: (1) the sharp rise in raw material prices leads to the decline of product gross profit margin; (2) macroeconomic recession and weakening demand.