Events:

The company released a semi-annual report that in the first half of the year, the company achieved operating income of 545 million yuan, an increase of 21.3% over the same period last year, and a net profit of 77.35 million yuan, an increase of 12.2% over the same period last year. The net profit after deducting non-profit was 68.352 million yuan, an increase of 1.24% over the same period last year, and basic earnings per share was 0.12 yuan.

Main points of investment:

The growth of coal machinery business resumed, and the growth rate increased further in the second half of the year.

In the first half of the year, the revenue of the coal machinery manufacturing business of the company reached 368 million yuan, an increase of 12.5% over the same period last year. The gross profit margin was 53.1%, an increase of 2.75% over the same period last year. In the context of the sharp rise in steel prices, the increase in gross profit margin shows the company's strong bargaining power. In the first half of the year, the company's complete machine and accessories business realized orders of 763.11 million yuan, an increase of 82% over 420.4 million yuan in the same period last year. The company's accounts received in advance reached 97.146 million yuan, an increase of 248.6% over the same period last year. Sufficient orders on hand fully guaranteed the growth of performance in the second half of the year. From an industry-wide point of view, the total fixed asset investment in the domestic coal mining and washing industry from January to July was 141.3 billion yuan, an increase of 1.6% over the same period last year, and the cumulative growth rate continued to improve over the same period last year. Under the background of high coal prices, we expect the coal machine to usher in a 2-3 year accelerated equipment renewal cycle, which will continue to be optimistic.

The new energy vehicle business is in the early stage of investment, which is a drag on performance.

After the company established the second main business of new energy vehicles, it quickly followed up. At present, it has formed seven subsidiaries, initially completed the layout of the three power plants, and started with the operation of logistics vehicles. Affected by the policy adjustment in the past 17 years, the company's new energy vehicle business is in the early stage of promotion, resulting in a loss of about 8 million, which is a drag on performance. After the acquisition of Yineng Electronics by major shareholders, the company has BMS, the core link of new energy vehicles, and has begun business level integration, which is worth looking forward to in the future.

Maintain the recommended rating

Based on the lower-than-expected development of the new energy vehicle business, the company's profit forecast is lowered, and the company's EPS in 17-19 is expected to be 0.27,0.38,0.44 yuan respectively, maintaining the "recommended" rating.

Risk hint

Coal industry capacity loss risk; coal enterprise equipment renewal is not as expected; M & An integration risk.