Main points of investment
The company issued a forecast of results for the first three quarters of 2017: the proposed profit for the first three quarters of 2017 was 66 million yuan to 70 million yuan, an increase of 25.29% to 32.88% over the same period last year, and that for the third quarter was 23.769 million yuan to 27.769 million yuan, an increase of 46.75% and 71.44% over the same period last year.
Deduction non-growth rate doubled, single-quarter growth rate is eye-catching. In the same period last year, the deduction of non-net profit was 26.4632 million yuan. In the first three quarters of 2017, the deduction of non-net profit was about 53 million yuan to 57 million yuan, an increase of about 100.28% RMB115.39% over the same period last year. The company gradually showed the effect of its own funds in the layout of the industrial chain, and the capital operation entered the harvest period. The growth rate in the third quarter is expected to be more than 46%, which is more than 30% higher than that in the first half of the year.
The company is the leader of XRF equipment, and the field of food security is expected to enter the harvest period. The company is the leader of XRF equipment and has the most complete chemical testing equipment in China. The State Grain Administration issued a notice on the implementation of the "High quality Grain Project". It plans to invest 25 billion yuan in 2017-2019, from action demonstration counties and demonstration enterprises to food security inspection system, and then to the comprehensive construction of grain post-natal service system. The annual demand for new equipment is about 2.5 billion yuan, which is expected to bring a new round of opportunities for the company's traditional main business.
Epitaxial mergers and acquisitions strengthen the layout of environmental protection, food safety and medical areas, profit and contribute to performance growth. The company has acquired four subsidiaries in cash, and its exam preparation performance reached 63.84 million yuan and 84.05 million yuan respectively in 17 and 18 years. Through epitaxial mergers and acquisitions, the company has moved from testing equipment to downstream environmental protection engineering and medical third-party testing, into fast-growing industries such as VOCs online monitoring and POCT in vitro diagnosis, and at the same time driving its own testing equipment sales, and consolidated income of Panheke instrument in the second half of the year, which is expected to further improve the company's performance growth.
Profit forecast and rating: optimistic about the medium-and long-term growth trend of the inspection and testing industry, "high-quality food project" is expected to bring new opportunities for the company's traditional main business. From 2017 to 2019, the company is expected to have an "overweight" rating of 0.26 EPS 0.33 won 0.43 respectively.
Risk hint: the price war of testing equipment, environmental protection and food safety policies are lower than expected.