Report guide
The company released its 2017 results, KuaiBao.
Main points of investment
Cost pressure superimposed industry policy adjustment, performance lower than expected
In 2017, the company achieved revenue of 3.414 billion, an increase of 21.63% over the same period last year, and realized a net profit of 204 million for shareholders of listed companies, an increase of 6.65% over the same period last year. The growth rate of net profit was lower than expected, achieving EPS0.18 yuan, the weighted average ROE9.41%, decreased by 0.16pct over the same period last year, and the net profit rate of sales was 5.98%, which was down 1.85pct from the same period last year. Affected by the rising prices of stainless steel plates, cold-rolled plates, aluminum profiles and other metal raw materials and the adjustment of subsidy policies in the new energy automobile industry in 2017, the company's profitability is under pressure. Revenue in the fourth quarter of 2017 reached 966 million, up 19.7 percent from the same period last year, and net profit was 15 million, down 61.54 percent from the same period last year, with EPS0.01 yuan per quarter.
The policy of Xinneng car is adjusted, and the growth of zero business slows down.
On the eve of the Spring Festival, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission formally issued the Circular on adjusting and improving the Financial subsidy Policy for the Popularization and Application of New Energy vehicles. In 2018, the subsidies for new energy vehicles declined overall, while local subsidy funds were encouraged to shift to supporting the construction and operation of charging infrastructure and the use and operation of new energy vehicles, raising the entry threshold for new energy vehicle technology as a whole. Encourage the technological upgrading of vehicle enterprises to promote the development of pure electric passenger vehicles in the direction of improving mileage and battery energy density. The company has Jingzhou New Power, Chengdu Lianteng, Hefei Cano three major new energy vehicle parts business, although downstream customers are mainly commercial passenger cars, but affected by the overall environment, the growth of new energy automobile parts business is expected to slow down in 2017.
Zhongzhi's profit is better than expected, and the performance is expected to increase after the statement.
The company recently announced that it intends to adjust the scale of non-public offerings, reduce the amount of funds raised from 1.009 billion to 605 million, and the purpose of the funds raised will remain unchanged, mainly for the purchase of assets Yantai Shuchi and Zhongzhi New Energy bus technical renovation and R & D center construction. Although Zhongzhi Yichi has not made a performance promise, it achieved an unaudited net profit of about 64.728 million yuan in 2017, which is better than expected. Yantai Shuchi's performance commitment of 100 million in 2017, the future with the issuance of shares to acquire assets, the two major new energy bus business will further strengthen the company's performance.
Profit forecast and valuation
The company is expected to achieve operating income of 3.414 billion, 4.099 billion and 4.913 billion from 2017 to 2019, an increase of 21.63%, 20.08% and 19.85% over the same period last year. Due to the policy adjustment of the new energy vehicle industry, there are still upward risks in commodity prices in 2018. Based on the principle of prudence, we downgrade the company's profit forecast, regardless of the impact of Zhongzhi and Yantai Shuchi. It is estimated that the net profit from 2017 to 2019 will be 205 million, 281 million and 393 million, up 7.34%, 37.3% and 39.77% over the same period last year, and 14.23%, 11.36% and 8.6% lower than the previous expectations of 239 million, 317 million and 430 million, respectively. After the reduction, the EPS is 0.18,0.25,0.35 yuan respectively, and the stock price is valued at 51 times, 37 times and 27 times respectively. Downgrade to "overweight" rating.
