Report guide
During the reporting period, the company achieved operating income of 689 million yuan, down 6.98% from the same period last year, and net profit of 65.0597 million yuan, down 27.21% from the same period last year. Of this total, the operating income in the third quarter was 226 million yuan, down 19.42% from the same period last year, and the net profit was 3.1891 million yuan, down-89.41% from the same period last year.
Main points of investment
Sign a strategic cooperation agreement for hydrogen fuel cell vehicles
Due to the follow-up impact of the drop in oil prices in 2016, traditional gas station equipment business is under pressure. Last year, gas station equipment orders dropped significantly, so the company took the initiative to reduce prices in the bidding, resulting in a decline in gas station equipment business revenue and gross profit margin this year. At the same time, the company's energy engineering business has just started, revenue recognition lags behind, resulting in the current period has not reflected the sales income. However, the company has plenty of hand-engineering orders, and the recognition of engineering revenue is expected to accelerate from the fourth quarter of 2017.
Policy Force promotes the Development of hydrogen fuel Cell vehicle Industry
From January to September 2017, the cumulative production of LNG heavy trucks was 66994 units, an increase of 571% over the same period last year, far exceeding the 50105 units sold in the most prosperous year of 2014. With the continuous surge of natural gas heavy truck sales, the investment in gas filling stations is expected to pick up. As the leading enterprise of natural gas filling station equipment, the order of natural gas filling station equipment has begun to recover slowly since the second quarter. However, the natural gas heavy truck boom transmission to the gas filling station investment lags behind, with the rapid increase of natural gas heavy truck holding, it is expected that the relevant gas station equipment investment is expected to accelerate in 2018.
LNG ship has a bright future, and its performance is expected to be realized gradually.
On August 28, the company announced that it signed a strategic cooperation agreement on shale gas comprehensive utilization project with the government of Yongchuan District of Chongqing, involving a total investment of about 4 billion yuan. The Yongchuan project is being actively promoted. After many in-depth studies, discussions and site selection work, the company and the Yongchuan district government agreed to sign an investment agreement before the end of November. In the first half of the year, the company's energy engineering and design business achieved a total income of 186 million yuan, a gross profit margin of 20.52% and a net profit rate of 9.18%. According to this estimate, the Yongchuan project is expected to bring nearly 400 million net profit to the company, and if the project is landed normally, it will greatly increase its performance in the next two years.
Profit forecast and valuation
We expect the company's net profit for 17-19 years to be 1.60 billion yuan, 327pm, 459 million yuan, and the corresponding price-to-earnings ratio is 38.2pm, 18.7pm, 13.3 times, respectively. The company has obvious advantages in the field of special natural gas equipment, and the order of natural gas filling station equipment is expected to pick up quickly. And sufficient engineering business orders, especially the landing of the Yongchuan project will significantly increase the company's performance, the company's performance this year is under pressure, next year's performance is expected to grow rapidly, continue to maintain the "buy" rating.