The company's operating performance increased year-on-year. In the first half of 2018, the company was innovation-based, guided by market demand, accurately grasped the good development trend of the NEV, consumer electronics and liquid metal industries, actively developed the company's main business through technology and product innovation, and continued to expand related product markets, further consolidating the company's leading position in NEVs, liquid metals, consumer electronics and other industries. In the first half of 2018, the company achieved operating income of 40,27.7775 million yuan, an increase of 14.04% over the same period last year; net profit attributable to shareholders of listed companies was 23.9066 million yuan, an increase of 13.56% over the same period last year.
The company has long been committed to developing new lightweight materials for new energy vehicles. After years of accumulation, the company has outstanding capabilities in technology, production capacity, and site management of new lightweight materials for new energy vehicles. It has leading R&D capabilities in mold R&D and design, new material technology, surface treatment, etc., and has strong lean production capacity and complete industrial chain advantages. As a specialized supplier of new energy vehicle parts, the company has entered the supply chain of well-known domestic and foreign customers such as Tesla, Harman, Desai, Alpine (Alpine), AW EUROPE, BYD, Geely, and Veray.
The company actively explores the consumer electronics structural parts market. Currently, competition in the consumer electronics market has shifted from product competition that simply pursues shipment volume and cost performance in the past to high-end boutique and differentiated competition. The boutique route makes consumer electronics products more and more lightweight, beautiful, wear-resistant, corrosion-resistant, and high-strength. The unique special performance advantages of new materials such as magnesium-aluminum alloys and liquid metals can meet these needs. This provides a broad market space for the development of new materials precision structure manufacturing enterprises. The company continues to focus on the consumer electronics business according to customer needs and market changes. Up to now, the company has established cooperative relationships with well-known customers such as Huawei, Lenovo, Samsung, Wetron, Heshuo, Lianbao, and Kyocera. While developing the consumer electronics business, the company has vigorously developed emerging industry markets such as action cameras, drones, and VR, and has established good cooperative relationships with well-known customers such as Idealens, Parrot, Gopro, Goertek Acoustics, and BOE.
The company is leading the industry in the field of amorphous alloys. The company is one of the few suppliers in the industry that can commercialize amorphous alloy (liquid metal) precision structural components in the consumer electronics field. It has mastered industry-leading core technology in the field of amorphous alloys, has core advantages in key technologies and process difficulties such as block molding and surface treatment, and has successfully developed and produced a series of large block amorphous products. The company has mastered the core technology of liquid metal machinery and equipment. The liquid metal machinery and equipment independently developed and produced by the company can achieve high vacuum throughout the process. Once precision parts are formed, they can achieve extremely high accuracy, strength and surface effects, and component consistency is close to the level of precision machining. The company is actively exploring the liquid metal product market and speeding up the market layout. The company is also the only company in the world that uses liquid metal in the automotive industry. In addition to being used in new energy vehicles, consumer electronics, etc., the company's liquid metal materials are also used in the fields of robotics and intelligent manufacturing. After years of technology accumulation and resource integration, liquid metal has entered mass production of Tesla's car door locks, mobile phone holders, hinges, USB decorations, etc., and has been successfully applied to camera module products.
The excellent characteristics of liquid metal itself give it a unique advantage in terms of dimensional accuracy and repeatability in the final molded product, which can fully meet the performance requirements of Face ID holders. The liquid metal FaceID holder produced by the company has been supplied in batches to well-known domestic mobile phone manufacturers such as Xiaomi and OPPO. During the reporting period, the company's liquid metal product sales revenue was 21.3487 million yuan, an increase of 14.28% over the same period last year.
Zhuzhou SDIC helped the company develop further. In February 2018, the company initiated a private stock inquiry and subscription process. Zhuzhou SDIC fully subscribed for 50 million additional shares. The capital raised this time was invested in the Yian Yunhai light alloy precision die-casting production base project, the amorphous alloy (liquid metal) precision structural parts industrialization expansion project, and the amorphous alloy (liquid metal) R&D center construction project. This will help the company consolidate its existing competitive advantage, further enhance its position in the industry, and ensure the company's sustainable development. Furthermore, the Zhuzhou National Investment Group is a 100% wholly owned enterprise of the Zhuzhou State-owned Assets Administration Commission. It has many resources for industrial development, and some of the enterprises it invests in have a certain correlation with the company's business, which is conducive to deeper cooperation between the two sides in the future. Zhuzhou Yian New Materials Research & Development Co., Ltd., which was jointly funded by the company and Zhuzhou National Investment Group, has now obtained an industrial and commercial business license.
The company's earnings per share for 18-19 are expected to be $0.25 and $0.34 respectively. Give the holder a rating.
Risk warning: market risk, management risk, exchange rate risk, goodwill impairment risk
