2017 operating profit and 2018 Q1 performance reversed losses for the first time in seven years, and multi-standard rail transit is ready to start.
Main points of investment
Revenue in 2017 was 1.66 billion yuan, + 9.26% year-on-year, and operating profit was 32.66 million yuan, turning a loss for the first time since 2012. In terms of products, rail transit revenue is 810 million yuan, year-on-year + 22.86%, growth rate is significant, revenue accounts for 49.09%, up 5.4pct; bridge functional components revenue 630 million yuan, year-on-year + 3.20%, steadily rising, revenue share 37.96%, year-on-year-2.2pct; supercapacitor system revenue 120 million yuan, year-on-year + 62%, the fastest growth rate, revenue ratio 7.02%, year-on-year + 2.3pct The revenue of special cars and other businesses totaled 98.55 million yuan. The total expense rate is 26.78%, year-on-year-1.51pct, in which the sales expense rate, management expense rate and financial expense rate are 5.87%, 14.58%, 6.33% and-0.79pct/-0.26pct/-0.46pct, respectively.
The comprehensive gross profit margin has improved slightly, and it is expected that the rail transit volume will greatly increase the gross profit margin level. 2017 comprehensive gross profit margin 20.02%, year-on-year + 0.65pct, sub-product point of view, rail transit gross profit margin of 7.36%, year-on-year + 2.36%, improved. CRRC Corporation 2017 urban rail and urban infrastructure plate gross profit margin of 16.86%, for CRRC Corporation, we think that the gross profit margin of newly built shares in this sector has greater room for improvement; bridge function components gross profit margin 31.54%, year-on-year-1.13pct, slightly lower The gross profit margin of the supercapacitor system is 42.46%, which is significantly higher than that of + 6.56pct. It is worth mentioning that the company's R & D investment increased significantly, with 104 million yuan in R & D investment in 2017, + 74% year-on-year, accounting for 6.28% of revenue, year-on-year + 2.34pct.
New products emerge one after another, and multi-system rail vehicles + supercapacitors + track systems are about to take off.
Modern tram is a cost-effective rail transit system. The company has the comprehensive service capability of civil construction + four electricity integration and has the unique competitive advantage of 100% low floor technology. The electric intelligent air bus system has the advantages of low cost and small footprint, and the vehicle has been suspended under the running department for more than 100 years, significantly improving the urban landscape. The new generation of medium-and low-speed maglev system has made many major breakthroughs and innovations in technology, application and cost. The system has been studied and optimized for 8 years by the world's top experts in the field of maglev transportation, such as the German National Maglev Center, Siemens and ThyssenKrupp. Breakthroughs have been made in the aspects of comprehensive efficiency, speed grade, acceleration capacity, passenger carrying capacity, magnetic radiation, noise control, limit size, etc., have been repeatedly verified in the test line for six years, and have run more than 70,000 km reliably. It has comprehensively surpassed all the medium and low speed maglev transportation systems in the world, reached the international leading level, and broke the bottleneck restricting the development of medium and low speed maglev transportation systems. It can be widely used in about 90% of the urban rail transit market, such as elevated light rail, urban fast rail, short-distance intercity, underground rail and so on. As an underground track, it will be the first in the world in China and will bring significant economic and social benefits. The new track system, which the company began to develop in 2012, is an embedded continuous support ballastless track system, which embeds the rail into the concrete monolithic track bed, with more than 50 patents, low operating cost, long life and low noise. Guangzhou, Shenzhen, Shanghai, Sanya and other places expressed their intention to cooperate. Supercapacitor system, which is undertaken by the holding subsidiary Aowei Technology, is the leader of the domestic supercapacitor subdivision industry. the products cover almost all types of supercapacitors in the world, which are mainly used in overseas buses and tunnel locomotives. Trams. During the reporting period, Aowei Technology supercapacitor products obtained the first domestic ECE R100 certificate and ECE R10 certificate, which belongs to the scarce resources in the same industry in the world. It indicates that the safety performance of Owi Technology's automotive supercapacitor products has reached the leading level in China and has obtained a pass to enter the European market in an all-round way.
Chengdu is the most "radical" city in rail transit planning in the country, and the company enjoys geographical advantages.
In November 2016, Chengdu completed the planning and revision of the urban rail transit network. The prospective recommended line network consists of 46 lines with a total mileage of 2450 kilometers, which is the largest urban rail transit network planning in China. The company enjoys excellent geographical advantages, sitting in Chengdu, radiating southwest. In October 2017, the official website of Chengdu Planning Administration released the 13th five-year Plan of Urban Rail Transit Construction in Chengdu.
According to the Plan, by the end of the 13th five-year Plan, we will strive to achieve a total rail transit construction mileage of more than 780 km, including 500 km in operation and more than 280 km under construction, and the commencement, completion and opening time of many lines have been announced.
The construction of urban rail transit in Chengdu is in full swing, which is expected to bring a revenue confirmation peak for the company from 2018.
2018 Q1 is expected to reverse losses for the first time in seven years, and Dong Jiangao will increase his holdings in the secondary market. The company announced that its net profit from January to March in 2018 is expected to be 50-10 million yuan (- 44.01 million yuan in the same period in 2017), which is the first turnaround in the first quarter since 2012, mainly due to the increase in the scale of rail transit business.
In addition, according to the announcement of February 5, 2018, based on the confidence in the company's future development prospects and the recognition of its intrinsic value, in the next five months from February 5, the company's director will increase its holdings in the company's shares, with a total amount of not less than 30 million yuan and no more than 180 million yuan. Profit forecast and investment rating: Chengdu is building the country's largest urban rail transit network, and the company has geographical advantages. And the market scope radiates the whole southwest region, the company's new products emerge in endlessly: medium and low speed maglev, new track system, super capacitor and so on. It is predicted that the EPS of the company from 2018 to 2020 will be 0.05ax 0.11max 0.21RMB, corresponding to PE 143Unix 68pm 35X, maintaining the "over-holding" rating.
Risk hint: Chengdu rail transit project is not advancing as expected, the overseas market expansion of supercapacitors is not as expected, and the new rail system is not as fast as expected.