Event
The company released its annual report for 2017. during the reporting period, the company realized operating income of 3.404 billion yuan, an increase of 24.83% over the previous year, an operating profit of 201 million yuan, an increase of 21.11% over the same period last year, and a total profit of 202 million yuan, down 9.40% over the same period last year. Net profit belonging to shareholders of listed companies was 138 million yuan, down 19.56% from the same period last year.
At the same time, the first quarterly report of 2018 was released, with operating income of 750 million yuan in the first quarter, an increase of 23.71% over the same period last year, and net profit of-12.286 million yuan, a decrease of-156.89% over the same period last year.
Brief comment
Elevator business has been blocked and performance has declined.
During the reporting period, the company's robot and motion control products business achieved good development, with revenue rising from 1.746 billion yuan in 2016 to 2.373 billion yuan, an increase of 35.91%.
While the development of elevator control products in traditional business was hindered by business transformation and macroeconomic factors, the operating income was basically the same as the previous year, while the operating cost increased by 3.67%, resulting in a decline in gross profit margin. During the reporting period, the overall cost of the company increased, and the gross profit margin decreased by 2.06%. The reason for the increase in costs is mainly due to the growth of the company's robot business and the intelligent control of the company's subsidiary company, and we expect greater profit margins as the company's robot product market opens further.
The robot business is growing well, and the cost needs to be optimized.
Taking advantage of the great development of intelligent manufacturing equipment, the company's robot business has grown rapidly in recent years. The company has launched various types of robot products and servers and other supporting equipment around the national industrial policy and according to the actual needs of customers. the scope of application can cover 3C, white electricity, auto parts, food and beverage, metal processing and other industries. The company's robot products won the Golden finger Award in 2017-the best robot brand in 2017 (multi-joint robot product group), Chiapek's "Top Ten system Integrators in the Automotive Industry", and SCARA (more than 6kg), which established the technology leading position in the domestic robot and motion control industry. But at present, with the rapid rise of costs related to business development, the shortage of raw materials, the contribution of business growth to performance is limited. In the future, with the formation of the scale effect of the company's robot and the synergy effect of the integration of the four major subsidiaries, it is optimistic that the company's robot business will reduce costs and increase profits and thicken the company's performance.
Attach importance to research and development to enhance competitiveness and match market demand
The company pays attention to R & D investment, improves market competitiveness and adapts to the changing market environment through technology upgrading. during the reporting period, the company has made certain research achievements in robot product business, motion control product business, elevator control product business, energy saving and industrial transmission product business. K5 series of high-performance pulse servo drivers developed by the company are the leading international servo drivers. Excellent performance A number of newly developed elevator control systems have also completed product verification and entered the stage of mass production and promotion. We believe that with the support of high-quality products, the company is expected to rise abruptly based on accumulated strength, increase gross profit margin and further expand market share in the future.
It is estimated that in 2018-19, the EPS of the company will be 0.40,0.46 yuan respectively, and the corresponding PE will be 21.46,18.71 times, maintaining the "overweight" rating, with a target price of 12.63 yuan.
Risk Tips:
1) the prosperity of the industry continues to decline
2) the expansion progress of robot products is not as expected.