Event: on August 25, 2016, the company released its semi-annual report in 2016. in the first half of the year, the company achieved operating income of 772 million yuan, an increase of 11.51% over the same period last year. The net profit belonging to shareholders of listed companies was 22.4839 million yuan, up 271.49% from the same period last year; basic earnings per share was 0.02 yuan, up 11.11% from the same period last year.
Comments:
The gross margin of income has increased. The company's main business is rare earth permanent magnet materials and products, motor series, logistics and fire intelligent equipment. During the reporting period, the economy at home and abroad was still in a complex and changeable situation, and the market competition of NdFeB magnetic materials was fierce, and the company actively promoted cost control management, strengthened the research and development of high-performance products, and further adjusted the product structure. the overall gross profit margin has increased; motor series to maintain the upward momentum, continue to strengthen research and development, actively open up new high-end product market, gross profit has increased, net profit increased compared with the same period last year.
Sales and management expenses have increased, while financial expenses have been greatly reduced. The sales expenses were 28.1198 million yuan, an increase of 34.76% over the same period last year, mainly due to the increase in freight, business expenses and travel expenses paid by the company in the current period; the management expenses were 93.6841 million yuan, an increase of 10.26% over the same period last year; and the financial expenses were 3.3425 million yuan, a decrease of 65.68% over the same period last year. The main reason is that the bank loan interest paid by the company in the current period decreased compared with the same period last year, and the exchange income increased over the same period last year.
Actively merge and improve the company's industrial chain. In the first half of the year, the company issued shares to raise no more than 613 million yuan, acquired 100% equity in the assets related to the import and export of NdFeB business in Ganzhou East Magnetic and Hengdian, and raised matching funds of no more than 613 million yuan. After the completion of this transaction, the company will further improve the existing industrial chain and promote the development of high-performance NdFeB permanent magnet material business and the company's equipment manufacturing business. give full play to economies of scale, further reduce production costs, enhance the competitiveness of the main business of listed companies, and improve the profitability of listed companies.
Through asset reorganization to create a new industrial ecology of "components + equipment + engineering". Through a series of acquisitions and restructuring, the company emphasizes that business collaboration has formed a product line of rare earth magnets, electric motor control and intelligent logistics equipment.
The company will strive to create a precision manufacturing industry platform of "control technology + motor", and build an industrial ecology of "components + equipment + engineering" through system integration. Vigorously develop new energy vehicle drive systems, medical rehabilitation electric wheelchairs, fire robots and fire control simulation training systems and intelligent factory systems and other business areas.
Maintain a "buy" investment rating. Combined with the progress of the company's project production, we expect the company's EPS to be 0.15,0.23,0.26 yuan respectively from 2016 to 2018, with a 66-fold PE in 2016, corresponding to the target price of 9.74 yuan, maintaining a "buy" rating.
Uncertainty: price fluctuation risk; policy risk; exchange rate risk; production risk of fund-raising projects.