The company released its third-quarter 2016 report on the evening of October 21. During the reporting period, the company realized operating income of 234 million yuan, an increase of 2.06% over the same period last year; net profit of shareholders belonging to listed companies was 60.4608 million yuan, an increase of 7.52% over the same period last year; and basic earnings per share was 0.1737 yuan, an increase of 7.89% over the same period last year.
Main points of investment: revenue is stable and still maintains a high growth rate in the third quarter.
In the third quarter of 2016, the company achieved operating income of 81.2252 million yuan, an increase of 5.12% over the same period last year, down 3.26% from the previous year. The year-on-year growth rate was mainly due to the steady growth of orders brought about by the development of new customers in traditional business such as needle roller bearings, while the slight decline was mainly due to the rapid increase in revenue in the second quarter. From the point of view of the expenditure during the period, due to the reduction of interest income, the company's financial expenses increased significantly in the first three quarters, with an increase of 71.41% year-on-year during the reporting period, while sales expenses and management expenses were reasonably controlled. In terms of non-operating income, it increased by 134% over the same period last year, mainly for the recognition of government subsidy income. On the other hand, the company's comprehensive gross profit margin for products in the first three quarters was 37.63%, a slight decrease of 0.57 percentage points from the first half of 2016, of which the comprehensive gross profit margin in the third quarter was 36.56%.
Wuxi pterosaur capacity expansion is progressing smoothly, the future growth is worth looking forward to.
In the first half of this year, the company accepted and increased investment in Wuxi pterosaur with its own funds, and officially entered the field of aviation equipment. The company currently holds 36% of Wuxi pterosaur, and is expected to become Wuxi pterosaur's controlling shareholder by continuing to increase its stake in two years. Wuxi pterosaur specializes in tire remanufacturing business, among which the more high-end aviation field is mainly occupied by traditional tire giant suppliers such as Michelin, Goodyear and Bridgestone. It has more than 95% market share of domestic aviation remanufacturing tires, and domestic suppliers mainly rely on import substitution strategy to win the share of the original overseas giants. Wuxi pterosaur has obtained 19 pieces of Boeing Co aircraft remanufacturing qualifications, covering all the main models of Boeing Co, at the same time, the research and development of Airbus series remanufacturing tires is also in the process of smooth progress. After becoming a shareholder of Wuxi pterodactyl, the company actively helps it expand its existing production capacity and plans to build a domestic high-speed tire remanufacturing base in Changzhou, of which the first phase of aircraft tire design capacity is 100000 / year.
The growth rate of one-way pulley assembly (OAP) has stabilized, and the forward installation market is expected to expand.
The growth rate of the company's OAP products has slowed down since the beginning of this year, mainly due to the need to wait for Valeo to pass the durability test. At this stage, it is mainly focused on the post-maintenance market business, while the downstream market is limited. As the company has accumulated rich testing experience in the early stage, we believe that it will continue to increase the technical research and development and improvement of existing OAP products, and may achieve a breakthrough next year at the earliest. According to the forecast of the organization, the size of the domestic OAP market in 2015 is about 2.214 billion yuan, and the market demand is 31.6277 million sets. In the first half of 2016, the company's OAP business achieved income of nearly 20 million yuan, which still has a lot of room for growth.
Maintain the recommended rating.
The company's main growth rate maintained steady growth, Wuxi pterodactyl capacity release is expected to get more high-end aviation sector remanufacturing tire orders. It is estimated that the company's EPS from 2016 to 2018 will be 0.20,0.28,0.34 yuan respectively, and the corresponding share price PE will be 67.25,47.71,39.35 times respectively.
Risk hint.
The prosperity of the automobile industry is declining; the growth rate of civil aviation is lower than expected; and the extension is slow.