The annual report is in line with expectations and the performance grows steadily.
HKUST Intelligence released its annual report for 2017. the revenue was 2.559 billion yuan, an increase of 47.60% over the same period last year. The net profit belonging to the parent company was 337 million yuan, an increase of 21.82% over the same period last year. The net profit after deducting the non-parent net profit was 290 million yuan, an increase of 17.13% compared with the same period last year.
The reason for the sharp increase in operating revenue is mainly due to the rapid development of industrial automation business, with revenue of 1.688 billion yuan, an increase of 70% over the same period last year. The reason that the growth rate of net profit is lower than the growth rate of revenue is due to the decline of gross profit margin, which is 35.32%, down 2.66 percentage points from the same period last year, mainly due to the rising cost of raw materials.
Overall layout of industrial automation, showing synergy
The subsidiary Yongqian Mechanical and Electrical Co., Ltd. achieved a revenue of 812 million yuan in 2017 and a net profit of 103 million yuan. Yongqian Mechanical and Electrical Machinery, a leading truss robot enterprise, has entered into the field of intelligent equipment in the new energy industry. At present, Yongqian Mechanical and Electrical Machinery and Guoxuan Hi-Tech have signed a contract of 123.28 million yuan, with a cumulative total of 38.78 million yuan by the end of 2017.
Guanzhi Automation achieved revenue of 586 million yuan in 2017, deducting non-return net profit of 65.983 million yuan, and made a performance commitment of 65 million yuan during major asset restructuring, with a completion rate of 101.5%. Huaxiao achieved revenue of 230 million yuan in 2017, deducting non-return net profit of 47.1975 million yuan, and made a performance commitment of 45 million yuan during major asset restructuring, with a completion rate of 104.88%.
Yongqian Mechatronics, Guanzhi Automation and Huaxiao Precision are all in the automotive field, where they can share channels and provide more solutions together. In the future, HKUST Intelligence will build a complete industrial chain layout from "Intelligent transfer manipulator (hand)-AGV (foot)-flexible production Line (body)".
Industrial 4.0 leader, continuous layout of artificial intelligence
The company has formed a perfect industrial chain in the field of industrial automation, and will continue to distribute artificial intelligence business in the future. Implement the precise strategic positioning of "AI+ Health" and jointly develop a health consultant robot with Fudan University. At the same time, invest in Beijing Yassen Technology Development Co., Ltd., realize the production of "image" + "health consultant"; invest in the smooth implementation of the new robot and artificial intelligence industrial base project, it will further promote the company's development strategy in the field of artificial intelligence and robot applications, and speed up the cooperative research and development and industrialization promotion of artificial intelligence industry-university-research.
Profit forecast: according to estimates, we estimate that the company's return net profit from 2018 to 2020 is 395 million yuan, 486 million yuan and 550 million yuan respectively, and the corresponding EPS is 0.54,0.67 yuan and 0.75 yuan respectively. We are optimistic about the company's layout in the field of industrial automation, with a six-month target price of 32 yuan and a "buy" rating.
Risk tips: smart manufacturing expansion is not as expected; extension business performance is declining; accounts receivable recovery risk