I. Overview of events
The company announced its semi-annual report on August 20, 2015, with operating income of 230.81 million yuan, down 28.25% from the same period last year, and net profit belonging to shareholders of listed companies was 31.62 million yuan, down 26.58% from the same period last year. The company will continue to get rid of the base impact of the pipeline project, with a substantial growth in digital plant business and an increase in gross profit margin for electrical automation and integration business. We carefully adjust the EPS for 15-17 years to 0.30,0.46,0.67 yuan respectively, maintain the "highly recommended" investment rating and maintain a reasonable valuation range of 30,32 yuan for 6 months.
II. Analysis and judgment
Operating income and profits fell, cash flow improved
Compared with the same period last year, revenue decreased by 28.25%, profits decreased by 26.58%, net cash flow from operating activities increased by 76.46%, bank loans decreased, interest payable decreased by 65.25%, and the company's cash flow improved significantly. At present, the company mainly includes four main businesses: rubber intelligent equipment, electrical automation and integration, digital factory, smart city. The digital factory business is the key development direction of the company this year, and the operating income of the current period has increased significantly by 824.69% compared with the same period last year. Electrical automation and integration business maintained steady growth. Rubber smart equipment and smart city business have dropped significantly compared with the same level, among which rubber smart equipment has been affected by the decline in the industry, while smart city business is mainly affected by the delay in the construction of the second phase of Shenyang Hunnan comprehensive pipe corridor project and the delay in revenue recognition.
The underground comprehensive pipe gallery is the hot spot of market investment in the second half of the year.
Li Keqiang presided over an executive meeting of the State Council on July 30, pointing out that it is necessary to learn from international advanced experience and build underground comprehensive pipe corridors in cities for the centralized laying of power, communications, radio and television, water supply and drainage, heat, gas and other municipal pipelines. as a livelihood project supported by the state. Under the background of the current domestic economic downturn, the underground comprehensive pipe corridor is an important fixed investment direction of the supporting economy. The company has the experience of general contracting of underground integrated pipeline corridor project and will benefit from the further promotion of the policy.
Digital factory is the bright spot of future performance.
On the basis of the stability of rubber intelligent equipment and electrical automation and integration business, the company will continue to expand its digital factory business. The company's newly established logistics automation department is mainly aimed at tire manufacturing, fast consumer goods, package sorting and other fields, providing complete solutions for logistics automation systems, including transportation, load transfer, sorting equipment, stacking, industrial robots, three-dimensional warehouses, control and management systems. At present, the large order of digital factory business increases, and the effect of business expansion is obvious, which will become a new performance growth point of the company in the future.
Third, stock price catalyst and risk hint
Stock price catalyst: epitaxial acquisition to make a breakthrough; the company to undertake new smart city, digital factory orders. Risk hint: the company uses BT to undertake government corridor project orders, there is a risk of delayed payment; at present, the company is in a period of rapid expansion of scale and personnel, and there are certain management risks.
Fourth, profit forecast and investment suggestions
At present, the company has full orders and steady growth, and we are optimistic about the company's in-depth expansion in the fields of digital factories, precision machinery and logistics automation for a long time. According to the current business progress of the company, we carefully adjust the EPS for 15-17 years to 0.30,0.46,0.67 yuan respectively, maintain the "highly recommended" investment rating, and maintain a reasonable valuation range of 30,032 yuan for 6 months.