A substantial increase in performance in the first half of the year
The company's operating income in the first half of 2017 was 331.9773 million yuan, down 5.61% from the same period last year. The net profit belonging to shareholders of listed companies was 15.6515 million yuan, an increase of 108.49% over the same period last year. At the same time, the announcement estimated the cumulative net profit from January to September 2017 to be 1667.59-19.309 million yuan, an increase of 90-120% over the same period last year.
The product structure has been upgraded and the interest rate has risen steadily.
With the gradual expansion of reactor products with high gross margin, the company's product structure has been further optimized, and its profitability has increased steadily. In the first half of the year, the comprehensive gross profit margin reached 14.38%, reaching the peak level since listing. During this period, the expense rate began to decline quarter by quarter since 2016. The company has achieved remarkable results in cost reduction and efficiency measures, and the net interest rate has increased.
Reactor products are expected to become performance-driven engines.
The company's new products high-voltage, high-capacity high-end air-core reactors have high technical barriers and have the core competitiveness of the market. 2016 won the bid Ximeng-Taizhou, Shanghai Miao-Shandong, Zhalut-Qingzhou, Changji-Guquan and other UHV lines, fully proved that the products are recognized by the national network, and about 50% of the products have been delivered. In the future, with the deepening of UHV construction during the 13th five-year Plan period, and UHV construction going abroad, the company's high-voltage reactor products will fully benefit, thus driving the company's performance.
Xinhuikai M & A completes double main business development Yang Fan
The company completed the merger and acquisition of Xinhuikai on August 8, 2017, and since then the company's main business will extend from the field of electrical equipment to the field of numerical control display. Xinhuikai has developed into a leading one-stop service provider for touch display products in the industry. according to Xinhuikai's performance commitment, the company's net profit in 2017, 2018 and 2019 is not less than 113.0143 million yuan and 136.5351 million yuan, 153.4927 million yuan respectively. Significantly thicken the company's performance.
Maintain the overweight rating
Considering the performance of Xinhuikai and the issuance of additional shares, the company's EPS in 2017-2019 is expected to be 0.44,0.54,0.64 yuan per share, maintaining the overweight rating.
Risk hint: the progress of UHV construction is lower than expected, and the development of touch industry is lower than expected.