Core ideas:
The company announced its third quarterly report for 2017: the operating income was 689 million yuan, down 6.89% from the same period last year, and the net profit belonging to shareholders of listed companies was 65 million yuan, down 27.21% from the same period last year. In the third quarter, the company achieved revenue of 226 million yuan, down 19.42% from the same period last year, and net profit belonging to shareholders of listed companies was 3 million yuan, down 89.41% from the same period last year.
It was confirmed that revenue and profit were low in the third quarter, and the performance declined: since the beginning of this year, the oil and gas price gap has been widening, and the demand for downstream natural gas heavy trucks has been high, but due to the time lag, the performance in the demand for gas station equipment is mediocre. The company's revenue remained positive in the first half of the year, mainly due to the rapid growth of the engineering design business of its subsidiary HTC. Due to the impact of the confirmation time of the engineering design business, the company's revenue declined to a certain extent in the third quarter of 2017 compared with the same period last year. At the same time, the company's comprehensive gross profit margin was also affected by changes in business structure, falling to 26.55% from 38.74% in the same period in 2016.
Build the layout of the whole natural gas industry chain: through business mergers and acquisitions and the expansion of the industrial chain, the company has initially constructed the layout of the whole natural gas industry chain and grown into a leading equipment supplier and service provider of overall solutions in the natural gas industry. In addition, the company is firmly committed to the development strategy of the whole clean energy industry chain, and actively expand new businesses such as natural gas pipeline, natural gas distributed power generation, photovoltaic distributed power generation and so on.
The development momentum of engineering design business is good: since the second half of 2016, HTC has announced the signing of natural gas pipeline contracts totaling 571 million yuan and photovoltaic power generation contracts of 60 million yuan. In addition, the company has successively announced the signing of a strategic cooperation agreement on comprehensive utilization of shale gas with an investment of about 4 billion with the people's Government of Yongchuan District of Chongqing, and a strategic cooperation agreement with Wuhan Geological Resources and Environment Industrial Technology Research Institute. jointly promote the application and promotion of hydrogen fuel cell vehicles.
Profit forecast and investment rating: from 2017 to 2019, the company is expected to achieve operating income of 1,322, 1647 and 2057 million respectively, net profit attributable to shareholders of the listed company of 167x215, 269 million, EPS of 0.45, 0.58 and 0.73, respectively, and corresponding PE of 37 / 28 / 23, respectively.
Taking into account the medium-and long-term development prospects of the industry and the rapid development of the company's new business, maintain the company's "buy" rating.
Risk tips: the decline in hand-on-hand orders for automotive equipment, resulting in lower-than-expected performance; macroeconomic fluctuation risk and oil price fluctuation risk; engineering business schedule is lower than expected risk.