Dynamic event
The company issued a performance forecast for 2017, with a net profit of 182 million yuan to 204 million yuan, an increase of 150% over the same period last year.
Comments on matters
All business sectors are developing well, and the performance in 2017 is basically in line with expectations. Benefiting from the increase in sales of PCB precision processing auxiliary materials and PCB precision machining testing equipment, as well as increasing acquisition layout in the field of intelligent manufacturing, the company merged three companies, namely Xuan Shuo Optoelectronics, Pengyuwei and Jiukun Information, in 2017, resulting in the rapid growth of the company's revenue and profits. Peng Yuwei's performance commitment in 2017 is 32.5 million yuan, Xuan Shuo Optoelectronics's performance commitment is 46.8 million yuan, and Jiyin Technology (acquisition in 2016) performance commitment is 60.84 million yuan. we expect that all three acquired companies have fulfilled their performance commitments. the integration and synergy after the acquisition appear.
Continue to increase acquisitions and improve the territory of intelligent manufacturing. After the listing of the company, in order to increase the development and form the layout of the intelligent manufacturing industry chain, we continue to increase acquisitions. Acquired Jiyin Technology in 2016 and entered the field of module equipment; successfully acquired Xuan Shuo Optoelectronics in the first half of 2017 to enter the field of LED automation; acquired Peng Yuwei to enter the field of robot automation; and acquired 80% stake in Jiukun Information Technology in the second half of 2017 to enter the field of intelligent manufacturing solutions. In January 2018, the company announced that its subsidiary, Jiyin Technology, had acquired a 100% stake in East China Xing with 60 million yuan in cash. The main products of East China Xing are fingerprint identification module, camera module, LCD module and automatic mounting equipment in TP module. Through continuous acquisition, the company's intelligent manufacturing plate is becoming more and more perfect, forming an integrated supply capacity of automation and solutions, downstream covering 3C, lithium, automation, LED, home appliances, elevators and other prosperous industries.
Dingzeng continues to promote the expansion of coding services. The company issued a fixed increase plan in October 2017, which is currently in progress and has received a feedback from the CSRC. It is proposed to increase by 927 million yuan and invest in intelligent equipment manufacturing center and FPC functional membrane material expansion and technical transformation projects. The intelligent equipment manufacturing center is mainly used to invest in the expansion of middle and high-end liquid crystal module intelligent equipment, lithium battery intelligent equipment and elevator intelligent equipment. The production expansion of functional membrane materials for FPC is mainly based on the covering membrane and release membrane currently produced by the company, and the product variety of functional membrane has been increased.
Investment advice. Based on the performance forecast, the company's 2017 performance is fine-tuned. It is predicted that the company's 2019 sales income will be 14.22,20.1 and 2.681 billion yuan, the net profit belonging to the parent company will be 2.03,3.38,466 million yuan, the EPS will be 1.03,1.71,2.37 yuan, and the corresponding PE will be 35.9,21.5,15.6 times. Maintain the company's "overweight" rating.
Risk hint. There is no synergy in acquisitions and goodwill is impaired.