[northeast Securities] Jicheng Electronics: stable performance, active layout of energy, Internet and military industry

東北證券 ·  08/11/2016  · Researches

Summary of the report:

In the first half of 2016, the company achieved revenue of 522 million yuan, an increase of 28.31% over the same period last year, and a net profit of 20 million yuan, an increase of 2.75% over the same period last year. The reason for the low growth rate of net profit is that the expense rate of the company has increased compared with the same period last year, the investment of engineering maintenance and R & D expenses has increased, and the subsidiary is still in the investment period. At the same time, the company expects the net profit of returning to the mother in the first three quarters to be 0.72-87 million yuan, an increase of 0% Mur20% over the same period last year, and the performance remains stable.

The main business of electric power automation remained stable. In the first half of the year, the company's electric power automation revenue reached 414 million yuan, an increase of 21.71% over the same period last year. The growth rate of electric power investment slowed down, and the batch and quantity of national network recruitment declined. The company seized the opportunities of national network recruitment and out-of-industry opportunities, and newly signed contracts totaled 612 million yuan during the reporting period, an increase of 18.2% over the same period last year. The company can provide overall solutions in the field of power automation to reduce the impact of the decline in industry growth.

The expansion of public utilities has accelerated. In the first half of the year, the company's revenue from public utility automation reached 97 million yuan, an increase of 65.65% over the same period last year. The company took the lead in putting forward the concept of direct meter reading in China, and its products are widely used in water and gas industries. Compared with the power grid, the automation level of water and gas is low, and there is still a lot of room for expansion. The company can provide one-stop service for customers in the field of water and gas. At present, the company is the largest provider of gas automation system in China, and the number of intelligent water meters is in the leading position in the industry.

We will actively distribute the energy Internet business and the military industry. The company will focus on the demand-side-oriented micro-energy network, and the plan has been accepted by the CSRC. The company has signed a cooperation agreement with the Yishui County Government of Shandong Province and the Yiwu County Government of Xinjiang to build a regional micro energy network project. During the reporting period, the company increased investment in Jiangsu Leke energy conservation, extending the field of microgrid business. In the future, the company will provide comprehensive energy services such as electricity, water, gas and heat for enterprises with the help of accumulation in the field of power automation and public utility automation. In the field of military industry, the company jointly established an industrial M & A fund with a total size of 1.5 billion yuan with Beijing Jiuyuan in 2015, the two sides achieve complementary resources, and civil-military integration is expected to accelerate.

It is estimated that the EPS of the company from 2016 to 2018 is 0.45,0.58 and 0.72 yuan respectively, and the PE under the corresponding share price is 36.40,28.20 and 22.74 times respectively. Give a "buy" rating.

Risk hint: the expansion of the energy Internet is not as expected, and the competition in the traditional main business is fierce.

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