The performance was in line with expectations, with a substantial increase in net profit in the first quarter
The company released its annual report in 2016, with an operating income of 320 million yuan, an increase of 5.92% over the same period last year. The net profit attributed to shareholders of listed companies was 72 million yuan, an increase of 10.82% compared with the same period last year. Profit distribution plan for 2016: cash dividend of 2.00 yuan (including tax) is distributed for every 10 shares.
At the same time, the company released a report for the first quarter of 2017, with an operating income of 89 million yuan, an increase of 29.00% over the same period last year. The net profit attributed to shareholders of the listed company was 23 million yuan, an increase of 44.84% compared with the same period last year. The performance was in line with expectations. The reason for the sharp increase in net profit in the first quarter is that the company's sales cost rate has decreased and sales revenue has increased. At the same time, OAP has passed the major customer test and will enter the automobile preloading market.
Participate in Wuxi pterosaur, enter into aircraft tire remanufacturing
In July 2016, the company signed a "letter of intent" with Wuxi pterosaur, taking a 36% stake in Wuxi pterosaur with its own capital of 58.7755 million yuan, and is expected to become Wuxi pterosaur's controlling shareholder within two years. Wuxi pterodactyl mainly engaged in aircraft tire renovation and testing services, the products are mainly for Air China Limited, China Eastern Airlines Corp Ltd, China Southern Airlines Company and other well-known aviation enterprises.
At present, the international tire giants occupy most of the aircraft tire remanufacturing market, and most of the refurbished tires imported by China in recent years are used in the aviation field. According to the company's announcement, tire giants such as Michelin account for 87% of the global aircraft tire market. Looking at the domestic, since 2011, the number of aviation refurbished tire imports accounted for more than 2GP3 of the total refurbished tire imports, and there are broad prospects for import substitution in the future.
According to the company announcement, the company has passed the civil aviation CCAR-145 assessment, obtained the qualification of four major airlines to repair, and obtained the remanufacturing qualification of 19 of Boeing Co's 23 tire models. The company announced last year that it signed an agreement with Wujin High-tech Zone to invest 1 billion yuan to build a remanufacturing production base for aircraft and automobile tires in Wujin High-tech Zone, which is expected to be fully put into production by the end of the year. In the future, due to the expansion of the aircraft tire remanufacturing market and the further promotion of the localization process, the company's business is expected to improve rapidly.
It is proposed to change the controlling stake, or to explore a new form of mixed reform of state-owned enterprises.
The company announced that it had recently received notice from Mr. Shi Jianwei, the actual controller, that it was planning to transfer the control of the company, and that the proposed recipient was Guangzhou Guofa Wen Investment Fund Management Center. It is announced that the process of transfer of controlling shares between the two sides of the transaction is advancing in an orderly manner.
Guangzhou Guofa Culture Investment Fund has a strong equity relationship with Guangzhou SASAC (Guofa Capital, that is, a wholly-owned enterprise of Guangzhou Municipal Government). In view of the relatively developed automobile supporting industries in Guangzhou, if the shareholding is successfully changed, it will help to explore the synergy between the southern axis business and the local market and help the company develop.
Investment advice: taking into account the relatively sound performance of the company and the transfer of controlling shares and other factors, we give the buy investment rating, we estimate that the company's EPS will be 0.25,0.29,0.33 yuan respectively from 2017 to 2019. Give a buy investment rating for the first time, with a 6-month target price of 17.05 yuan.
Risk hint: the company's extension expansion is not as expected, and the tire remanufacturing market is not as large as expected.
