Report guide
The company's latest 2017 annual report released on March 31 showed that its operating income was 3.02 billion yuan, up 1.62 percent from the same period last year, while the net profit belonging to shareholders of listed companies was 58.48 million yuan, up 53.1 percent from the same period last year. Basic earnings per share is 0.07 yuan.
Main points of investment
The company has maintained high growth for two years in a row, and the liquid crystal display module is lower than we expected. The annual report shows that all aspects except the liquid crystal display module business are basically in line with our previous predictions. However, because the company's liquid crystal module experienced a transformation from a small screen to a large screen last year, we were too optimistic in predicting the sales during the structural transition period, ignoring the reasonable order loss during the transition period. As a result, the forecast sales revenue of our business exceeds the actual situation.
The company announced the future strategy, the platform group company has set sail strategy to build intelligent systems and big data industrial management + participation shareholding platform company, will focus on "new materials and their processing applications", "intelligent systems and big data" and "clean energy" three main industries, and formulated a five-year plan and a series of goals. We believe that after the painful period of transformation, the period of business running-in and the period of strategic planning, the management and various businesses of the company have entered a new development track, and the company will really follow the thinking of development after the transformation in the first year. While the traditional business is stable and growing, high-tech and high-margin business will also contribute to performance, and the company will maintain high-quality and high-quality growth under endogenous and extension development in the future.
Profit forecast and valuation
Without taking into account the extension, we expect that from 2018 to 2020, the company will achieve revenue of 4.5 billion, 6 billion, 7.5 billion, net profit of 110 million, 145 million, 212 million, EPS0.13 yuan, 0.17 yuan, 0.25 yuan.
We believe that the company is at a turning point in its development and will have a high growth rate in the future, giving it a "overweight" rating.
Risk hint
Traditional business orders are lower than expected, photovoltaic supply progress is lower than expected, and intelligent system sales are lower than expected.