Main points of investment
The company announced its annual performance forecast for 2017 on January 18, 2018. It is estimated that the net profit for the whole year is about 26,104.23,307.1086 million yuan (153.3543 million yuan in the same period last year), an increase of 70% over the same period last year. It is estimated that the net profit of the company belonging to the shareholders of the listed company in 2017 will rise in the same direction compared with the same period last year, and the impact of non-recurrent profit and loss on the net profit is about 14 million yuan. In this regard, our comments are as follows:
The rapid development of light conveyor belt business, international layout leading the conveyor belt industry. The company's traditional business focuses on expanding domestic and overseas markets, and there are still broad prospects, and the city takes the lead in the light conveyor belt industry. Since the completion of the acquisition of Vanderwell of the Netherlands in December 2016, the company has taken the first step in its international strategic layout, and its consolidation in January 17 is also a major reason for profit growth. Through the absorption and improvement of advanced technology in the past 17 years, the company has further expanded the domestic and overseas markets, and the light transport belt business has maintained a good growth trend.
Weifeng International also promotes profit growth and makes a comprehensive layout of precision modeling of the hundreds of billions of-level market. In 2016, the company raised funds for the acquisition of Weifeng International through a non-public offering, which was consolidated in November 2016, with a high gross profit margin, which significantly contributed to profit growth. Through the acquisition of Yingdong molding, the layout of high-end automotive brand customer precision molding products; the acquisition of Weifeng international layout educational toys, consumer electronics, communications equipment industry, supply Lego and other well-known enterprises, and with its excellent customer loyalty has laid a good foundation for the future development of the company. In the molding industry, the company through mergers and acquisitions comprehensive layout, integration of industry resources, in the hundreds of billions of molding market, its 17 years of business growth is also relatively stable.
The prospect of intelligent sorting business is broad, and the cooperation has achieved initial results. In 2015, the company entered the field of intelligent sorting system by holding Xingba Technology, and signed a strategic cooperation agreement with Shentong Express. After two years of running-in, the project has basically landed. Compared with its highly developed automatic sorting technology and industry concentration abroad, the domestic market has more room for growth. With the rapid growth of the express delivery industry, the company is likely to provide support for express companies and become a new profit growth point in the logistics industry by integrating light transport belt and intelligent sorting.
Risk hint. 1. The promotion of intelligent sorting system is not up to expectations; 2. The decline in product sales brought about by the macroeconomic downturn.
Profit forecast and valuation. We maintain the company's net profit forecast of $342 million, compared with an EPS of $0.75, 0.98 and $1.20, respectively, with a target price of $22.6 and a "Buy" rating based on 30 times PE in 2017.