Key elements of the report:
Benefiting from the merger table molded by Yingdong, the company achieved rapid revenue and profit growth in the first three quarters, while the company's main business remained stable as a whole. In the first three quarters of 2015, the company achieved operating income of 586 million yuan, an increase of 106.19% over the same period last year, and a net profit of 65.23 million yuan, an increase of 64.48% over the same period last year.
Through the acquisition of Yingdong Molding, the company is expected to achieve complementary technology between the two sides, to make up for the technical deficiencies in mold design, injection molding and other fields, so as to realize the market development of plastic chain plate. Through capital increase, the company controls Xingba Technology, realizes the layout of the intelligent sorting system market, and brings new growth space for the company. It is estimated that the company's EPS in 2015 and 2016 will be 0.50 yuan and 0.68 yuan respectively, with a corresponding PE of 35.80 times and 26.32 times respectively based on the company's current share price of 17.90 yuan, maintaining the "buy" investment rating.
Events:
Wynn Belt (300230) released its three quarterly results for 2015. In the first three quarters of 2015, the company achieved operating income of 586 million yuan, an increase of 106.19 percent over the same period last year, and realized a net profit of 65.23 million yuan belonging to shareholders of listed companies, an increase of 64.48 percent over the same period last year, and basic earnings per share of 0.36 yuan. Among them, the operating income in the third quarter was 323 million yuan, an increase of 202.04% over the same period last year, and the net profit was 35.1 million yuan, an increase of 84.26% over the same period last year.
Comments:
Yingdong molded and watch led to high performance growth. The company is the leading enterprise in the field of conveyor belt in China. At present, the company's main business is generally stable, with a growth rate of about 5% in recent years. The high growth in revenue and profits in the first three quarters mainly benefited from the consolidation of Yingdong Molding. The company completed the acquisition in May, and Yingdong molded results began to consolidate in June, leading to rapid growth in the third quarter. In addition, the company's products account for a relatively large proportion of exports, the devaluation of RMB in the third quarter will help to enhance the export competitiveness of the company's products, and contribute to the performance growth to a certain extent. Benefiting from this, the company's operating income in the first three quarters was 586 million yuan, an increase of 106.19% over the same period last year, and the net profit was 65.23 million yuan, an increase of 64.48% over the same period last year.
Yingdong Molding mainly provides precision molding for automobile and home appliance enterprises, has strong mold design and processing ability, is one of the few domestic enterprises in the industry to supply goods to joint venture automobile enterprises, and is a first-class supplier to Toyota, Hyundai and other automobile enterprises. and will supply to BMW, Mercedes-Benz and other enterprises. The company's performance has grown rapidly in recent years, and it is estimated that the net profit contributed from June to September is more than 20 million yuan, and the annual profit is expected to contribute 60 million yuan, far exceeding the promised 40 million yuan. In the future, Yingdong molding is expected to become an important driving force for the company's performance growth.
Changes in income structure led to a decline in gross profit margin. The company's comprehensive gross profit margin in the first three quarters was 32.99%, down 11 percentage points from the same period last year.
Among them, the gross profit margin in the third quarter was 29.58%, down 5.36 percentage points from the previous quarter. The decline in gross profit margin is mainly due to changes in the business structure. Compared with the company's conveyor belt products, Yingdong molded products plastic parts and moulds have a lower gross profit margin, pulling down the overall gross profit margin level. From the perspective of specific products, the gross profit margin of each product is generally stable. With the completion of the adjustment of the company's business structure, the company's profitability is expected to remain stable.
The acquisition of Yingdong molding is expected to achieve the development of the field of plastic chain plate. Plastic chain plate is another important type of light conveyor belt market. Compared with the company's main resin conveyor belt, plastic chain plate has the advantages of high strength and corrosion resistance, and has more advantages and broad prospects in food processing, medicine, beverage and other industries. The company has strong technical strength in resin processing, but there is a technical deficiency in mold development, which restricts the company's march into the plastic chain plate market. Yingdong Molding has a strong advantage in mold design and processing ability. Through the acquisition of Yingdong Molding, the company is expected to achieve complementary technology between the two sides and make up for the technical shortcomings in mold design, injection molding and other fields. At present, the domestic plastic chain plate basically depends on imports, and the company is expected to achieve a smooth breakthrough and bring new growth power to the traditional conveyor belt business.
Holding Himba Technology, enter the intelligent sorting market. The company recently announced that Xingba Technology to achieve capital holdings, cut into the intelligent sorting system market. Xingba Technology is mainly engaged in the research, design, implementation and inquiry of intelligent sorting system, and its core team has profound theoretical foundation and rich project management and operation experience in this field. Xingba Technology has signed a strategic cooperation agreement with Shentong, which has great potential for growth in the future. The company's conveyor belt business is closely related to the fields of logistics and warehousing, and it is expected to have a synergistic effect with Xingba Technology to understand the downstream needs of customers. At present, China's logistics industry is mainly manual sorting, with the rise of labor costs and the improvement of sorting efficiency requirements, intelligent sorting system is expected to usher in the rapid growth of the market, bringing new growth space for the company.
Profit forecast and investment advice: the company's EPS in 2015 and 2016 is expected to be 0.50 yuan and 0.68 yuan respectively. Based on the company's current share price of 17.90 yuan, the corresponding PE is 35.80 times and 26.32 times respectively, maintaining the "buy" investment rating.
Risk hint: the promotion of intelligent sorting system is not as expected, and the business development of plastic chain plate is not as expected.