Recently, the company released the 2018 mid-term report that the operating income in the first half of the year was 400 million yuan, an increase of 69.46% over the same period last year, and the net profit was 39.55 million yuan, up 161.40% over the same period last year. The net profit after deducting non-return was 36.39 million yuan, an increase of 187.11% over the same period last year. The comprehensive gross profit margin in the first half of the year was 42.91%, up 1.65 percentage points from 41.26% in the same period last year, of which 2018Q1's single-quarter gross profit margin was 36.17% Jol 2018Q2 single-quarter gross margin 45.81%. According to the product classification, the revenue of the precision carving machine reached 206 million yuan, an increase of 40.46% over the same period last year, accounting for 52.47% of the total revenue in the first half of the year, and its gross profit margin reached 40.96%. Non-standard machines made a big leap forward, with revenue of 149 million yuan, an increase of 561% over the same period last year, and a gross profit margin of 43.68%.
Focusing on wireless charging, the winding machine market can be expected. The company has obtained customer recognition in the field of coil winding equipment at the receiving end and transmitting end of mobile phone wireless charging. The transmitter coil winding equipment was sold in small quantities in 2017. Mass production of wireless charging devices at the receiving end has been achieved in the first half of 2018, with 365 units delivered and 90 units checked and accepted by June 30. Moreover, at this stage, the gradual maturity and promotion of smart phone wireless charging technology will stimulate the continuous penetration of this technology in the fields of consumer mobile electronic products, cars, furniture and medical devices, and the company is expected to further expand its production capacity. open up the winding machine market.
Cosco Xiangrui has stable orders and high-quality customer resources. In 2018, the demand for 2.5D/3D curved surface glass from downstream mobile phone manufacturers is strong, and the demand for Cosco Xiangrui's production of precision engraving machines and hot bending machines is increasing, which provides support for the completion of performance commitments. Cosco's main customers include Huawei, Samsung, XIAOMI and Lenovo, while its overseas markets such as India are also actively expanding.
Vigorously research and development, the combination of industry and research, promote technological breakthroughs. In the first half of the year, the company invested 15.26 million in R & D, an increase of 17.76% over the same period last year. The company has a sound independent R & D system, actively carries out independent innovation and introduces high-end technical personnel at home and abroad, and pays attention to market demand-oriented and the combination of industry and research. The company has successfully applied microcomputer control technology to CNC automatic winding equipment and surrounding fields, and mastered the ability to apply mechatronics technology in electronic coil production equipment, which is at the leading level in the same industry.
Investment advice and rating: the company's net profit from 2018 to 2020 is expected to be 122 million yuan, 193 million yuan and 261 million yuan, and EPS is 0.98,1.55 yuan and 2.10 yuan, with a corresponding price-to-earnings ratio of 25 times, 16 times and 12 times respectively.
Risk hint: the development of the industry is not as expected; the transformation of new product R & D is not as expected.