Report guide
Event: Wynn released its third quarterly report for 2017: in the first three quarters of 2017, the company achieved operating income of 2.19 billion yuan, an increase of 95.94% over the same period last year, and a net profit of 218 million yuan belonging to shareholders of listed companies, an increase of 132.60% over the same period last year. In the third quarter, the operating income in a single quarter was 817 million yuan, an increase of 77.08% over the same period last year; the net profit of shareholders belonging to listed companies was 70.6158 million yuan, an increase of 82.36% over the same period last year, basically in line with expectations.
The conveyor belt industry is still booming, and Vanderwell brings incremental income.
The conveyor belt continued to grow steadily in the first three quarters of 2017. The main reasons are: 1) the prosperity of the industry remains the same, and the conveyor belt industry maintains an annual growth rate of more than 15%. As the leader of the domestic conveyor belt industry, the company has obvious advantages in the middle and high-end market; 2) the addition of Vanderwell in the first half of the year brings incremental income and profits. Vanderwell is mainly responsible for the processing and finishing of light conveyor belts for European terminal customers, with a revenue of 39.6437 million yuan in the first half of the year, accounting for about 15% of the conveyor belt business in the first half of the year.
Relations between China and South Korea are slowing down, and Beijing and Cangzhou, which are supporting modern times, are expected to reduce or reverse losses within three to five years.
The growth rate of Yingdong molded net profit in the first half of the year is lower than the revenue growth rate, which is mainly affected by the relationship between China and South Korea. The third five-year Plan of Beijing and Cangzhou, which are matched by Hyundai, are caused by the change from profit to loss compared with the same period last year. In the second half of the year, the relationship between China and South Korea slows down. Beijing Hyundai's sales growth rate in September exceeded 60%. We expect Beijing and Cangzhou to reduce or reverse losses within three to five years. According to the growth rate of Yingdong molding net profit in the first half of the year, Yingdong molding is in no danger of achieving its annual performance commitment.
The integration of Weifeng International is smooth and the mold design ability is outstanding.
Weifeng International realized revenue of 486 million yuan and net profit of 98.4546 million yuan in the first half of the year, accounting for 65.61% of the annual performance commitment of 150 million yuan. Weifeng's production capacity tilted to high-end business in the first half of the year, and the mold business with high gross margin accounted for a significant increase in revenue. Weifeng International has independent mold design capabilities and rich industry experience, can provide customers with fast, high-quality high-precision mold design and manufacturing services. At the same time, the company has advanced mold design software and tools, which can model and compose accurately according to the product concepts put forward by customers, thus improving the overall efficiency of mold design and manufacturing.
"Singles Day" is coming, intelligent sorting projects from logistics enterprises are about to accelerate the landing.
The income of automatic sorting reached 44.5017 million yuan in the first half of 2017, an increase of 34.85% over the same period last year. Xingba has plenty of orders on hand, and it is expected that orders from logistics enterprises will be completed before the "Singles Day" shopping festival. According to our estimation, only the demand for intelligent upgrading of transit centers built by express companies such as Shunfeng, "three links and Yida" and Debang in the next five years will give rise to the demand for 50 billion yuan of intelligent sorting equipment. We believe that with the accumulation of technology and the improvement of brand awareness in 2016, the company will explore more cooperation opportunities through the advantages of widely distributed customer resources in 2017, and the intelligent sorting business is expected to break out in 2017.
Risk hints: the price of raw materials has risen; the exchange rate of RMB has appreciated sharply; and competition in the market for automatic sorting has intensified.