The company released the mid-2016 report, the performance doubled, compared with the same period last year, the company realized operating income of 375 million yuan in the first half of 16 years, an increase of 106.28% over the same period last year; realized net profit of 43.9268 million yuan belonging to shareholders of listed companies; realized net profit of 40.3344 million yuan after deduction belonging to shareholders of listed companies (a loss of 19.268 million yuan in the same period last year); realized EPS of 0.22 yuan. The company also released its performance forecast for the first three quarters of 16 years. Net profit from January to September is expected to rise 259.23% year-on-year to 305.59% to 6200-70 million yuan. The main reason for the rapid increase in the company's performance is the substantial increase in orders and revenue for insulators brought about by UHV construction.
Focus on electric porcelain products, sub-industry leaders fully benefit from the rapid growth of UHV power grid, as a century-old electric porcelain leading enterprise, the market share in the field of UHV porcelain insulators is more than 40%.
The new factory Fujian New Bainer has been put into production, the company's porcelain and composite insulators have been produced in different regions, the industrial layout has been optimized, and the production efficiency has been improved, resulting in a great improvement in gross profit margin. In the first half of the year, the gross profit margin of insulators reached 36.74%, an increase of 10.32 pct over the same period last year, of which composite insulators made a significant breakthrough this year, with revenue up 332.56% year-on-year, and gross profit margin increased by 7.20 pct to 14.81%. In addition, the company's composite insulator products are expected to obtain railway CRCC certification this year, which will open up a broad market outside the company's power grid.
The peak of UHV construction is coming, and the company's orders continue to rise.
Over the past 15 years, UHV has gradually stepped out of the shadow of security debate and become a part of the normal construction of power grid. Ten lines have been under construction since the end of 14, and another 5-6 lines are expected to be approved in the second half of 16. By the end of the 13th five-year Plan, the State Grid Company plans to build 27 "five vertical and five horizontal" UHV lines, together with four international lines, more than 30 UHV projects will be started within five years, with an investment of more than 10 billion yuan for corresponding insulators. As the leader of the industry, the order volume of the company has continued to rise in recent years, with 270 million yuan of new orders in the first half of the year, which is basically the same as that of 15 years. With the acceleration of the progress of power grid construction, the confirmation period of new orders will be greatly shortened.
Professional managers + equity incentives to form a combat effective management company to complete the replacement of management, the actual controller Mr. Liu Guixue resigned as a director and completely withdrew from management, and the company was formally transformed into a professional manager enterprise. In 15 years, the company completed its first equity incentive and awarded 4 million restricted shares to management and core technicians. the unlocking condition is that the 15 -, 16-and 17-year net profit increased by 60%, 70% and 80% over 14 years. According to the third-quarter performance forecast, it is a deterministic event that the unlocking condition is reached this year. Through equity incentives, the company formally formed a second-generation management team with common interests, and completed the younger management transformation. In the first half of the year, the company tried to introduce strategic partners, which marked the first step in the opening and development of the company. We believe that it will be a high probability event for the company to continue to expand and enrich its product line.
Profit forecast
It is predicted that the EPS of the company in 16-18 is 0.47,0.62,0.79 yuan respectively, and the corresponding PE is 48 times, 37 times and 29 times respectively.
Risk hint: the progress of UHV construction is not as expected, and the intensification of competition for composite insulators leads to a decline in gross profit margin.