Key data of financial reporting
In the first three quarters of 2017, the company's revenue rose 15.92% year-on-year to 3.352 billion yuan, while net profit attributable to shareholders fell 29.7% year-on-year to 225 million yuan, realizing EPS 0.07 yuan. The company expects net profit in 2017 to fall by 40.02% to 4.02% compared with the same period last year. The performance was lower than we had expected.
Main points of investment
Factors such as copper price fluctuation have great influence on net profit.
We analyze and judge that the main reason for the low expectation of the company's performance is that the price fluctuations of copper and other raw materials led to a large floating loss in copper and aluminum futures at the end of the reporting period, and the fair value change income of the company in the first three quarters was-26 million yuan. compared with 21 million yuan in the same period last year, it decreased by 47 million yuan.
Strengthen technological innovation, actively open up domestic and foreign markets, and promote the development of the main industry. At present, the company maintains strong competitiveness in market segments such as submarine cable, UHV wire and rail transit cable. 2
Since 2007, we have focused on the research of 500kV ultra-high voltage submarine cable system and accessories, 220kV ultra-high and ultra-large cross-section compact conductor submarine cable, 400kV ultra-high voltage cross-linked cable, ultra-high voltage submarine cable soft joint research, marine engineering special cable research and other major projects. We believe that excellent technical strength is an important competitive advantage of the company in the cable industry.
Since 2017, the company has won the bid for cable projects in Qingdao, Rizhao, Harbin, Xi'an, Hebei, Suzhou and Beijing in the domestic market, implemented projects in Mongolia, the Philippines, Venezuela, Pakistan, C ô te d'Ivoire, Saudi Arabia and other countries in overseas markets, and won bids in the Philippines, Pakistan, South Sudan, Cameroon, Angola and other countries along the "Belt and Road Initiative". We believe that the overseas market will become an important performance growth point for the company in the future.
Maintain the "overweight" rating
We expect that from 2017 to 2019, the company will achieve EPS of 0.09,0.12,0.13 yuan, corresponding to 41.3,29.5,27.5 times of EPS E.
Risk hint
Market competition may intensify, new business development with overseas market promotion or low expectations.
