Event

The company released its three-quarter report on October 26, with operating income of 356 million yuan during the reporting period, an increase of 31% over the same period last year, a net profit of 41 million yuan, an increase of 24% over the same period last year, and a net profit of 41 million yuan, an increase of 26% over the same period last year. In the first three quarters, the total revenue was 963 million yuan, up 37% over the same period last year; the cumulative net profit was 106 million yuan, up 13% over the same period last year; and 104 million yuan was deducted from the non-return net profit, an increase of 30% over the same period last year. The growth of revenue and profit is caused by the growth of the company's main sales and the consolidation of Hangzhou Iron City.

Brief comment

The impulse of new energy vehicles in the fourth quarter is expected to drive the information performance of Tiecheng.

Tiecheng information vehicle charger products mainly match new energy passenger vehicles and pure electric logistics vehicles. It is expected that new energy passenger vehicles and pure electric logistics vehicles will both break out in the fourth quarter, and performance flexibility is expected to be released. In terms of passenger cars, the production and sales of new energy passenger vehicles completed 343000 and 325000 respectively from January to September this year, an increase of more than 50 per cent over the same period last year. With the official landing of the double-integral system in September, it is expected that new energy passenger vehicles will maintain high growth in the future. As for logistics vehicles, the accelerated volume mode has been started in the second half of the year. According to the caliber of the energy-saving network, the output of pure electric special purpose vehicles in September was 14000, an increase of 103% over the same period last year and 1003% month on month. In the first three quarters, the output of pure electric special purpose vehicles was 45000, an increase of 37.5% over the same period last year. In the first nine months of this year, the total number of public orders for pure electric logistics vehicles has exceeded 130000, so the output of pure electric special purpose vehicles still has a lot of room for growth in the fourth quarter.

The leading position of the fan industry is solid, but the gross profit margin is declining.

The company's leading position in the traditional fan business industry has become increasingly stable. However, affected by the rise in the price of raw materials, the gross profit margin of air conditioner fans and cold chain fans has declined.

The transfer of new marine materials in Qingdao could not be completed in the third quarter.

The company's quarterly results are lower than the expectations made in the semi-annual report, but are in line with the revised announcement of the results forecast on October 14, which is due to the failure to complete the transfer of new Qingdao marine materials in the third quarter. The industry engaged in by Qingdao Ocean New Materials deviates greatly from Yilida's main business and development planning, so the company signed a "letter of intent for Equity acquisition" with Nanjing Chongyi on August 1, and proposed to transfer its 51% stake in Qingdao Ocean New Materials at a price of 128 million yuan. at present, the matter has not yet reached the deliberation stage of the board of directors.

The company issues an annual performance notice

At the same time, the company issued a forecast of operating results for 2017, with an estimated net profit of 120 million to 156 million, an increase of 0% to 30%. The reason for the change in performance is the incorporation of Tiecheng information.

Investment suggestion

It is estimated that the company's EPS in 2017-19 will be 0.47,0.59,0.71 yuan respectively, corresponding to 26,21,17 times PE respectively, with a target price of 15.90 yuan, maintaining a "buy" rating.

Risk hint

1. The prosperity of fan industry is declining.

two。 The development of new energy vehicles is not as expected.