Event: on the evening of August 27, the company released its 2018 semi-annual report, which showed that during the reporting period, the operating income reached 576 million yuan, an increase of 41.99%. The net profit of 66.5948 million yuan was realized, an increase of 86.52% over the same period last year, and the net profit of non-return was deducted from 13.6868 million yuan, down 45.12% from the same period last year. At the same time, the company expects the net profit from January to September 2018 to be 6720.06-91.6372 million yuan, an increase of 10% 50%.
Core ideas:
Smart hardware + financial income performance is beautiful, two-wheel drive performance growth: the company's 2018H1 revenue increased by 41.99%, mainly because the company's intelligent hardware revenue exceeded 325 million, 87.44%:LED lighting achieved business income of 210 million yuan, with an increase of 127.03%, which is the company's potential demand for customers with good credit standing. At the same time, because the company's WAFER series ultra-thin circular panel lamp has strong market competitiveness. The ordering demand of some major customers has increased significantly compared with the same period last year. The revenue of consumer electronic products reached 114.8298 million yuan, an increase of 42.10%, mainly due to the substantial increase in the order demand of the company from the customer ASM PT China manufacturing center. The company's intelligent marketing business achieved revenue of 234 million yuan, an increase of 4.45% over the same period last year. The company's overall gross profit margin was 19.02%, down 5.31% from 2017. The rates of sales and management expenses were 3.20% (+ 0.27pct) and 9.22% (- 0.48pct) respectively, mainly due to the increase in staff salaries and R & D investment. The rate of financial expenses is-2.05% (- 0.51pct), mainly due to higher financial returns during the reporting period. The company sold all the shares of Huicheng World and obtained an investment income of 24.2433 million yuan, accounting for 30.52% of the company's total profit. Company account funds + financial funds are still more than 500 million yuan, capital activation and investment around the industrial chain is expected to bring considerable benefits.
In-depth layout of intelligent hardware business, a clear "production, investment and research" strategy implementation path: during the reporting period, the company invested in the establishment of Yiming Optoelectronics, Jiangsu Shiyida, respectively committed to the layout and development of the international lighting market and the domestic new retail field of intelligent lighting market; the company increases capital in Singapore enterprise Yizhi Union, which mainly focuses on the research and development, design and marketing of smart locks. The company increases capital and participates in McMeng Technology, and uses Maimeng Technology as an independent company to operate SaaS products-intelligent marketing "radar" platform, focusing on providing intelligent marketing solutions in the fields of education and insurance, helping customers to enhance the competitiveness of the industry in the "big data + artificial intelligence" era. The company's investment layout in the field of intelligent hardware subdivision further improves the company's business plate and is of positive significance to the company's long-term development. At the same time, the company actively integrates resources and sells 100% of the shares of Yida Industries, a subsidiary with overlapping supply chains, to Yida Technology, which realizes the unified standardization and management of the intelligent hardware business plate, which is conducive to the long-term development of the company. the company's intelligent hardware + intelligent marketing dual drivers continue to achieve results.
Profit forecast and valuation: the company's EPS from 2018 to 2020 is expected to be 0.220.28pm 0.32 yuan per share, and the corresponding PE is 34-28-24 times. The company's extension and layout around the industrial chain in the field of smart hardware is expected to further expand the revenue scale of the smart hardware sector, and at the same time, with the activation of funds in the account is expected to bring considerable benefits, considering that the company's previous callback valuation has been digested, give careful recommendation rating.
Risk hint: acquisition integration risk, performance bet is not up to the expected risk.