Main points of investment
Performance summary: the company achieved an operating income of 303 million yuan in 2017, an increase of 38.2% over the same period last year, a net profit of 20.89 million yuan, an increase of 29.0% over the same period last year, and a cash dividend of 0.32 yuan per 10 shares (including tax).
The original business continues to break through. In 2017, the original business revenue of Xinyuan Technology was 270 million yuan, an increase of 23.2% over the same period last year.
Among them, 1) the revenue of the three core products of intelligent internal mixer auxiliary system, pneumatic material conveying system and small material automatic batching and weighing system is 120 million yuan, down 16.8% from the same period last year, and the business is expected to rebound as the rubber industry recovers. 2) relying on the company's in-depth understanding of the downstream rubber industry and customer advantages, the rubber industry VOCs governance business achieved rapid volume. In 2017, the revenue was 100 million yuan, accounting for 35% of the total revenue, an increase of 61.9% over the same period last year. 3) in order to cut into the field of automotive automation production line, the newly expanded electroplating system business has a revenue of 20.37 million yuan in the first year, which has developed well. The continuous accumulation of customers is expected to lay the foundation for the company to enter more automotive automation production line equipment manufacturing and VOCs governance in the automotive field, and further open up the growth space.
The intelligent performance of Clearing Investment Co., Ltd. is well realized and develops rapidly. In June 2017, the company launched a major asset restructuring to buy 97.01% of the shares of CIC Intelligence with 770 million yuan, of which 420 million yuan was paid by issuing shares, and the issue price was 31.02 yuan per share. at the same time, we raised 370 million yuan from Agricultural Bank of China International Investment, Penghua assets and Agricultural Bank of Nations shares, and the issue price was 19.6 yuan per share, which was used to pay the cash consideration of the restructuring transaction. On December 21, 2017, CCTV intelligently realized the consolidated statement, and promised that the profit for 17 and 18 years would not be less than 5500 yuan and 70 million yuan, and the cumulative profit for the three years from 17 to 19 would not be less than 215 million yuan. In 2017, the net profit after deducting non-return to the mother was 55.8 million yuan, and the annual combined operating income was 33.1 million yuan. and the net profit is 9.53 million yuan, promising good performance. At present, CCTV intelligent ploughing large screen splicing business, the market share continues to increase, performance is steadily increasing; smart gun wardrobe and intelligent ski machine two products rapid volume, rapid growth; electric power and granary inspection robot has formed products and made certain market breakthroughs, the follow-up market opening is worth looking forward to.
Profitability and expense rates remain basically stable. In 2017, the company's comprehensive gross profit margin was 33.2%, down 2.5 percentage points from the same period last year, mainly due to the expansion of revenue share of environmental protection business (gross profit margin 33.8%) and electroplating equipment business (gross profit margin 14.6%). The follow-up Clearing Investment Smart year-round consolidation table is expected to greatly improve the company's profitability. In terms of expense rate, the company's expense rate during the 2017 period was 22.5%, an increase of 1.9 percentage points over the same period last year, and the overall rate remained basically stable.
The growth road of epitaxial M & An is expected to continue. At present, Qing Investment Intelligence has been integrated with the company, the management team is rapidly integrated and strategically consistent, and the development direction of industrial intelligence has been worked out. The follow-up company is expected to carry out a series of layouts around the field of industrial intelligent equipment, and the road of extension growth of continuous mergers and acquisitions is expected to open.
Profit forecast and rating. It is estimated that the EPS from 2018 to 2020 is 0.73,0.98,1.28 yuan respectively, corresponding to 34,25 and 19 times of PE. After the strategic transformation, the company has a clear goal and a strong driving force for development. in the next three years, it is expected to grow rapidly in the way of "endogenesis + extension" and maintain the "overweight" rating.
Risk hint: rubber industry recovery is not sustainable risk, M & A performance does not meet the expected risk.