Semi-annual report released gratifying results, divestiture loss business delivery ratio greatly increased the company announced semi-annual report, operating income increased by 422.9979 million yuan over the same period last year, an increase of 113.90%, return to the mother net profit of 25 million yuan, in line with previous expectations. The company's gross profit margin was 19.87%, down 14.41 percentage points from the same period last year, mainly due to changes in business structure and a substantial increase in the proportion of rail transit business. The company's net interest rate was 3.41%, a substantial turnround from the same period last year, mainly due to the decline in the company's current expense rate and the divestiture of lossmaking general assets.
The gross profit margin of rail transit business has increased significantly, and the scale effect shows that profitability continues to improve. From the perspective of business, the business income of rail traffic, bridge structures and supercapacitors in the first half of the year was 455 million yuan, 248 million yuan and 60 million yuan respectively, with year-on-year changes of + 4117%,-10.10% and + 0.78% respectively.
As the income of the rail transit business in the same period last year was only 11 million yuan, the gross profit margin was as high as 26.82%, which is actually not comparable. Excluding the abnormal value, we believe that the gross profit margin of the current rail transit business is 8.62%, which is the highest level since the volume of the company's rail transit business in 2015. The scale effect and the continuous increase in the proportion of independent parts are expected to lead to the continuous improvement of gross profit margin. The gross profit margin of bridge structure and supercapacitor is 28.27% and 42.42% respectively, changing by-4.06% and + 0.44% respectively.
During the period, the cost has improved significantly, and the operating capacity has been greatly improved.
There are many marginal improvements in the company's statements: 1) the expense rate has improved significantly. The rates of sales expenses, management expenses and financial expenses were 5.36%, 16.03% and 8.49% respectively, down 4.26%, 14.37% and 5.35% respectively. 2) the operating capacity increased significantly. Inventory turnover and accounts receivable turnover were 1.03 and 0.59 respectively, compared with 0.40 and 0.43 in the same period last year.
With the steady progress of medium and low speed maglev and the gradual layout of high-end rail transit business, the business of high-end rail transit companies has previously been more diversified, and the energy invested in various business sectors has been relatively scattered. so that the performance of concrete equipment, road construction machinery, track consulting and other sub-sectors is not satisfactory. Since 2016, the company began to actively divest the original weak business Xu Li. In addition, the company actively introduced new technologies in the industrial layout. At the end of 2017, Borg signed a new generation of medium-and low-speed maglev cooperation agreement to vigorously develop a new generation of medium-and low-speed maglev system, aiming to occupy the commanding height of industry development. The superiority of the new generation of medium-and low-speed maglev system has been widely recognized by the industry and the market. It has obvious advantages in advanced technology, safety, economy, comfort, adaptability, energy saving and environmental protection, which can completely replace the traditional wheel-rail system and straddle monorail system, and will be the mainstream direction of the future development of urban rail transportation. the momentum of development is rapid.
Profit forecast: due to the company's semi-annual report results in line with expectations, the company's current loss business has basically been spun off, and the rail transit business is advancing well. The company is expected to have revenue of 2.74 billion, 4.15 billion, 6.85 billion and 7.45 billion in 2018-2021, and net profit of 102 million, 203 million, 404 million and 512 million. Maintain the buy rating.
Risk tips: rail transit business is not as expected, market competition is intensified, and so on.