The country's largest wind power up to the motor enterprise. At present, the company is mainly engaged in motor, generator, new energy vehicle stator and rotor core research and development, production, sales and service. After years of development, the company's main products in motor stator and rotor punching and iron core production include national standard ordinary motor, new energy vehicle drive motor, high efficiency motor, wind turbine, traction motor and so on. Mainly used in the field of new energy vehicles, high-efficiency motor-driven pumps, fans, machine tools, compressors, urban traffic and industrial and mining electric vehicles and other industrial equipment and agricultural machinery, as well as wind generators, oil generators, hydrogenerators, mobile power and other power generation equipment. Large motors are mainly used in the national environmental protection industry. Pressing, stacking, casting aluminum, wire winding and other technical links, all maintain the leading position in the industry.
The industry is mature and the market competition is fierce. As an important device of electromechanical energy conversion, motor is the basic component of electric drive and has a wide range of applications. After years of rapid development and growth, China's motor manufacturing industry has been in a very mature stage of development. at this stage, the motor industry is characterized by a large number of manufacturers, low industry concentration, lack of high-end production capacity and fierce price competition in the market of medium-and low-end products. The company is a leader in the industry, but in the fierce competition in the industry, the company also faces many strong competitors, such as: Shenli, Tengpu, Youle, Porsche and other large-scale well-known enterprises. Generally speaking, the companies in the industry do not have a profound economic moat advantage, and the market mechanism leads to the general instability of the profitability of companies in the industry.
The company's operation fluctuates greatly and its performance stability is poor. In 2018, the company realized operating income of 1.155 billion yuan, an increase of 6.5% over the same period last year, and a net profit of 19.4 million yuan, an increase of 390% over the same period last year. The net cash flow generated by operating activities was 15 million yuan, an increase of 400% over the same period last year. In Q1 in 2019, the company achieved operating income of 302 million yuan, an increase of 21% over the same period last year, and a net profit of 6.4 million yuan, an increase of 43% over the same period last year. The net cash flow generated by operating activities was 38 million yuan, down 39% from the same period last year.
Profit forecast: we predict that the company's EPS from 2019 to 2021 will be 0.17,0.08,0.11 yuan respectively, corresponding to 65.2 times, 145.8 times and 106.8 times of PE respectively.
Risk tips: 1) the company has a large one-time capital impairment; 2) the model of relying on financing for blood transfusion is difficult to sustain.
