Events:

In the first half of 2018, the company's operating income was 171 million yuan, down 0.46% from the same period last year; the net profit belonging to shareholders of listed companies was 26.1812 million yuan, an increase of 0.56% over the same period last year. The company expects the net profit attributable to shareholders of listed companies from January to September 2018 to be 3000-33 million yuan, an increase of-6.38 to 2.98 percent over the same period last year.

Event comments:

Press and whole-line equipment business remains stable, agricultural machinery mushroom unmanned bag machine performance is eye-catching. The business of presses and whole-line equipment remained stable, with revenue of 68.8597 million yuan, an increase of 0.51% over the same period last year, and gross profit margin increased by 11.20Pct over the previous year. The company and the participating company Haiyuan 3D jointly develop the agricultural intelligent equipment market, and have launched a product-mushroom unmanned bag machine, which is mainly used for the production of mushroom sticks for growing edible fungi. Since it was introduced to the market, it has been widely recognized by customers under the triple natural and favorable conditions of the national poverty alleviation policy, the upgrading market demand of agricultural automation and its own comprehensive strength. The company has made greater efforts to expand the agricultural machinery market in Fujian Gutian, Hubei, Heilongjiang, Guizhou and other provinces and cities with a good foundation of agricultural automation factory. 2018H1, the company's agricultural intelligent equipment business income of 10.304 million yuan, mushroom unmanned bag machine will become the company's future equipment business new growth point.

Automobile lightweight business is bound to front-line lithium battery and vehicle manufacturers, with an order of more than 1.4 billion yuan. While actively maintaining and serving existing core customers such as Geely, Ningde Times, brilliance BMW, Yutong, Dongfeng Liuqi, etc., the company has actively opened up other markets and successively won projects such as the bottom shields of Outuo China and BMW, as well as Hefei Guoxuan (a wholly-owned subsidiary of Guoxuan Hi-Tech), Xin Wanda and other mainstream automotive power battery manufacturers. As of August 23 this year, the company has accumulated orders ranging from 1.405 billion yuan to 1.758 billion yuan, of which Geely orders include 511 million yuan to 864 million yuan for LCV models and 450 million yuan for MPC-1 projects; orders for battery cases include 150 million yuan for Ningde Times, 189 million yuan for Hefei Guoxuan, 6500 yuan for Xinwangda, and 4000 million yuan for Euro bottom guard plate. The above orders will be gradually put into mass production in the fourth quarter of this year. We believe that the company's automobile lightweight business is bound to a front-line lithium battery and vehicle manufacturer, with an order of more than 1.4 billion yuan, indicating that the company has a successful foothold in this field and will open up a new space for the company's future growth.

Carbon fiber lightweight has mass production capacity and is actively opening up customers. The pure carbon fiber body "Haiyuan Albert", which is jointly developed and designed by the company and Rankier in Italy, has been unveiled at the JEC Paris Composite Show in March this year, which once again proves the company's leading position in the field of full-body accessories for lightweight automotive parts. At present, the company's carbon fiber products production line has achieved fully automatic batch production capacity. The company is actively promoting cooperation with a number of car companies on the development and design of carbon fiber body.

The field of lightweight public construction has blossomed in an all-round way, and the beneficiary countries are expected to increase infrastructure construction. Because of the advantages of safety and environmental protection, labor-saving and material-saving, the company's composite building formwork has been fully blossomed in the fields of national pipe corridor engineering, rail transit, road and bridge tunnel, construction, municipal projects and other public construction fields. has established long-term cooperation with China Communications, China Rallway, China Metallurgical Construction, China Railway Construction Corporation, Shanghai Metro, Shenzhen Metro, Vanke, Greenland and other enterprises, on the basis of consolidating the existing partners. Yi Ante, a shareholding company, continues to actively expand other large construction enterprises and constantly expand its market share. In the first half of the year, under the background of the national financial "deleveraging" policy and frequent global trade disputes, the company's lightweight construction business (including template Taiwan market and international market) was affected to a certain extent. 2018H1, the company's composite material business income of 68.6623 million yuan, down 11.96% from the same period last year. At the Politburo meeting held at the end of July, the Politburo proposed to make up the deficiency board as the current key task of deepening supply-side structural reform, increase efforts to make up for deficiencies in infrastructure, increase infrastructure construction in beneficiary countries, and the company's template business orders have improved.

Investment advice:

Taking into account the dilution effect of non-public offering shares for the time being, we expect the net profit attributable to the parent company owner of 2018UniGet 20119 in 2020 to be 0.98 Universe 1.76 / 300 million yuan, corresponding to EPS 0.38 Placement 1.15 yuan, and corresponding Pamp E to 24-14-8 times. The company's press and whole-line equipment business remains stable, and the performance of the unmanned bag machine for agricultural machinery mushroom is outstanding; the automobile lightweight business is bound to a first-line lithium battery and vehicle manufacturer with an order of more than 1.4 billion yuan, and will gradually put into mass production in the fourth quarter of this year. The performance inflection point is highlighted, and we maintain the "buy" investment rating.

Risk Tips:

The market expansion of construction lightweight business was not as expected, the determination progress of automobile lightweight orders was lower than expected, the sales of new products of presses and whole-line equipment were lower than expected, and the fund-raising project was not approved.