Main points of investment:
Third quarter single quarter results.
1) the company's revenue growth slowed down in the third quarter and made a profit loss, mainly due to: on the one hand, the company's supporting income growth slowed down significantly due to the reduction of production in the off-season in the third quarter, the decline in production and the price reduction of the mainframe factory; on the other hand, the depreciation expense increased significantly due to the relocation of new equipment for Jinhong crankshaft and normal production in the third quarter (the amount of projects under construction decreased by 64.54% compared with the beginning of the third quarter). 2) at present, the plant construction of the "crankshaft production line" project invested by Pengxiang, a major shareholder, has been basically completed, and the equipment has been relocated, installed and debugged. According to the promise of Haowu, a major shareholder, we expect that the injection of "crankshaft production line" into listed companies is expected to be realized soon. 3) although the depreciation pressure of new equipment is high, with the active development of new customers, the adjustment of product structure and the commissioning of new production lines with high automation rate, we expect that the company's operating performance will continue to improve in the future.
The future will remain the same.
1) the major shareholder Haowu has excellent qualification of mechanical and electrical assets. In addition to benefiting from the development and growth of the controlling shareholder property Group, the company may become the capital platform for the securitization of the automotive electromechanical plate of the property group; 2) according to public information, the company will focus on the automobile post-service market, expand the company's main business by means of mergers and acquisitions, cultivate new industries and increase new profit growth points. At present, the company has initiated with Binkai Investment, Zhuolang Technology and Huixin Chuangfu to set up a technology-based SME venture capital fund-Tianjin Fortune Jiaji Investment Partnership (limited partnership), which will be introduced into the Ministry of Science and Technology to guide the fund. in the future, we will mainly invest in advanced manufacturing, electronic information, new materials, high-tech services and other emerging industries. In terms of policy, the CSRC intends to cancel the administrative examination and approval of major asset restructuring in addition to backdoor listing, as well as the addition of M & A funds and other M & A payment and financing instruments for listed companies. This will provide convenience and policy guarantee for the company to smoothly carry out capital operation to expand the company's main business and enhance the company's profitability. 3) the actions of Xinjiang Silicon Valley Paradise continued: Xinjiang Silicon Valley Heaven bought 18.33 million shares of the company from the secondary market on June 25, and signed a three-year "Strategic Consulting and M & An Integration Service Agreement" with Silicon Valley Paradise Group on December 11. On December 24th, the second shareholder, Xinjiang Silicon Valley Heaven, increased its stake in the company by 4.2563 million shares, accounting for more than 5% of the company's cumulative shareholding, and became a related party, which is conducive to closer cooperation between the company and Xinjiang Silicon Valley Paradise in the future. To sum up, we believe that with the support of joint venture capital funds and Silicon Valley Paradise, future companies will carry out mergers and acquisitions and expand their main business around the post-service market in order to achieve great-leap-forward development.
Keep the profit forecast unchanged and maintain the "overweight" rating.
We believe that the revision of the company's executive compensation system linked to ROE and market capitalization shows that the company attaches importance to market-oriented management, improve company performance and enhance investor confidence. Taking into account the increase in depreciation expenses for new equipment, we adjust our profit forecast: in 2015-17, the company is expected to achieve operating income of 4.51 pounds 5.63 / 710 million yuan, an increase of 11.23 percent over the same period last year. The net profit of return to the parent is 0.23, 0.29 / 36 million yuan, an increase of 25.82% over the same period last year, and the corresponding EPS is 0.05, 0.06, 0.08 yuan per share, respectively. It is recommended that you continue to pay attention to the "overweight" rating. Risk hint: mass production of new products and new market development are lower than expected; cost growth during the period is higher than expected.
