CYTS: The mid-year report exceeded expectations and benefited from Wuzhen and Gubei
Research institution: Everbright Securities
In the first half of the year, the company's main business income was 4.976 billion yuan, up 4.26% year-on-year; net profit was 318 million yuan, up 92.17% year-on-year (partial benefit from Wuzhen's large government subsidy of 191 million in June), and net profit after deduction was 52.75%. ; EPS 0.44 yuan, exceeding expectations. The rapid growth of non-net profit was mainly due to the increase of 26% in the net profit of Wuzhen, and the net profit of Gubei (41%) was 144 million, which was a loss compared with the same period of last year, including the real estate project “Great Wall Source†settlement of 89 million. .
In the first half of the year, gross profit margin increased by 2.4 points to 24.4%, and the proportion of scenic spots business benefiting from higher gross profit margin (83%) increased from 11.3% to 14.15%; sales expense ratio increased by 0.85 points to 10.61%, which was amortization of assets. As a result of the increase in sales promotion expenses; the administrative expense ratio increased by 0.49 points to 4.90%; the financial expense ratio increased by 0.2 points to 0.60%, due to the increase of 390 million short-term loans and 140 million long-term loans in the current period; net operating cash flow + 280 million yuan / increase of 798%, for Wuzhen received a large amount of government subsidies of 191 million; investment income of 61 million / increase 2495%, mainly due to the substantial increase in the performance of Gubei Water Town (41%).
The travel agency business (38%) is under pressure, with an income of 1.891 billion/-7.38%, but it is advancing into education, sports and tourism emerging markets. It is expected that the 2H investment in the company will decrease, which will slow down the company's performance. . Integrated marketing (accounting for 21%) revenue of 1.068 billion / +21.20%, in July, China Youth League linked to the new three board. IT services (22%) earned 1.092 billion/+8.98%. The hotel business listed the new three board in January.
Wuzhen and Gubei Water Town are expected to continue high growth, and this year Shanghai Disneyland will promote the promotion of Wuzhen passenger flow. It is predicted that the 16/17/18 EPS will be 0.66/0.77/0.92 respectively, and the current 16PE is 32 times, giving “buyâ€. Rating. Risk warning: The passenger flow in the scenic spot is not up to expectations.
Lijun shares: economic downturn results in a decline in performance, military business boosts profitability
Research institution: Cinda Securities
Event: On August 25, 2016, Lijun Co., Ltd. released its 2016 semi-annual report. During the reporting period, the company achieved operating income of 219 million yuan, a decrease of 4.47% year-on-year; real: the net profit attributable to shareholders of the parent company was 47.17 million yuan, a year-on-year decrease of 24.33%; basic earnings per share was 0.05 yuan.
Comments: The domestic economy is facing downward pressure, causing the company's performance to continue to decline. In the first half of 2016, the company's operating income decreased by 4.47% year-on-year, and the net profit of returning to the mother fell by 24.33%, mainly due to the fact that the domestic and international macroeconomic situation is not optimistic, and the domestic economy is still facing downward pressure. The company's traditional main business cement roller presses and ancillary products were affected by factors such as the decommissioning of production capacity and product sales prices in the cement and building materials industry, resulting in a 48.85% decline in revenue, which was the main reason for the decline in revenue. In terms of mine high-pressure roller presses and ancillary products, revenues rebounded sharply, up 157.72% year-on-year; roller (sub)product revenues increased by 134.82% year-on-year. During the reporting period, the company's three expenses increased by 34.82%, resulting in a significant decrease in the company's net profit than the revenue decline, mainly due to the increase in administrative expenses by 9.47% and the decrease in interest income, resulting in a 48.66% increase in financial expenses.
Expanding the military business to boost the company's profitability, and still have the imagination of M&A in the future. In September 2015, the company completed the acquisition of 100% equity of Chengdu Dekun Aviation Equipment Manufacturing Co., Ltd., and Dekun Aviation became a wholly-owned subsidiary of the company, completing the first step from the transformation of ordinary manufacturing to military manufacturing. Dekun Aviation's main aviation parts and tooling design and manufacturing, in the October-December 2015 and the first half of 2016, respectively, the company achieved a net profit of 17,779,600 yuan and 6,204,700 yuan, significantly improving the company's overall profitability. It is worth noting that although the company's financial expenses have risen during the reporting period, it is still negative, and the company is currently in ample money. Such low financial pressure is rare in the current domestic manufacturing industry “cold winterâ€. Considering the promotion effect of Dekun Aviation's acquisition on the company's profitability, it is considered that the company's future business development in the military industry and related sectors is still worth looking forward to.
Earnings forecast and rating: The company's 16-18 year EPS is expected to be 0.12 yuan, 0.13 yuan, 0.14 yuan, according to the 2016-08-24 closing price, corresponding to PE: 73 times, continue to maintain the "overweight" rating.
Waihai shares: Q3 performance is expected to improve significantly, actively transforming the second main business of entertainment
Research institution: China Merchants Securities
Event: The company's 2016H1 realized revenue of 848 million yuan, down 0.53% year-on-year; net profit was 13.301 million yuan, down 14.86% year-on-year, EPS was 0.02 yuan, and the first three quarters expected to increase by 30%-80%.
16-year performance can be expected, the controlling shareholder large proportion of subscription super-supervisor increased holding confidence: 16H1 achieved revenue of 848 million yuan, down 0.53%, net profit of 13.301 million yuan, down 14.86%, the main reason can be summarized as: 1) industry Poor prosperity and fierce competition, the company's gross profit margin decreased by 2.09 pp to 11.05%; 2) the project started to work slowly; 3) the provision for asset impairment losses increased by 7,480,100 yuan. H1 gross profit margin decreased by 2.09 pp to 11.05%, and net profit margin decreased by 0.26 pp, mainly because 1) business tax and surcharge decreased by 180.06 million yuan; 2) financial expense ratio and management expense ratio decreased by 0.32 and 0.12 pp, respectively. The company's 2016 results are bound to usher in an inflection point, mainly because: 1) the application of PPP mode increases, the volume of individual projects is increasing; 2) the old BT projects enter the repurchase period. In terms of cash flow, the net operating cash flow for the first half of this year was -235 million yuan, which was mainly due to the payment of investment intention margin and project integrity deposit. At the end of May 2016, the company revised the fixed increase plan for the third time. Among them, the company's largest shareholder, Weihai Holdings, subscribed 60.73%, and individual shareholder Li Chengcheng was one of the company's actual controllers, Feng Quanhong's daughter-in-law, with a subscription ratio of 10.73%. In addition, the company's chairman, wife, vice-chairman, deputy general manager and many other executives increased their shareholdings in the company. As of the end of January, they had increased their shareholdings by 5.67%. These fully demonstrate the company's high-level confidence in the company's future development.
Active transformation: to create the second main business of cultural entertainment + main business extension company while deepening the main business, while actively exploring the secondary industry, breaking through a single operation, the company's transformation can be reduced to: 1) the implementation of dual main business model, focusing on cultural entertainment Industry, etc.; 2) Main business extension, environmental protection, involving water treatment, sludge solidification, soil remediation, etc. At present, the company has decided to take the cultural and entertainment industry as its second main business. It plans to focus on building a professional service chain in the process of industrialization of the cultural and entertainment industry, providing key services for the creative, production, distribution and operation of film, animation, games and other content. tool. The company will develop by endogenous (self-built related companies and platforms) and extension (through foreign investment and mergers and acquisitions, accelerate the industrial chain layout, including cultural and entertainment industry insurance and guarantee, original content tool platform, etc.), the main development direction in the future is vertical Integrate the local industry chain, layout the flow and content of emerging markets, and lay out emerging technology directions. The company has established a second main business division and a relatively independent operation management system that meets the characteristics of the cultural and entertainment industry, and strives to become a leading service provider in the domestic cultural entertainment industrialization process within five years.
Based on the main business, vigorously develop the PPP model and help the main industry to grow at a high level: starting from 2015, the company will vigorously develop PPP projects and build an integrated service provider of “investment, construction and operation†to realize the general contracting from construction to general contracting of the project. The business model changed. From the beginning of 2016 to the present, PPP announced orders of 14.436 billion yuan. In 2015, PPP announced orders for the whole year was 907 million yuan. Relying on the unique development advantages in Zhejiang Province, the company has formed a market development strategy of “provincial fixed point, provincial distribution, and foreign pilotâ€, forming a market network combining point, surface, and point.
4. Actively develop PPP, the second main business of entertainment enters the imagination space, and gives the “strongly recommended-A†rating company to the main industry for the first time, and actively develops PPP projects. The 2016 performance can be expected, and at the same time, the second main business of culture and entertainment is built. Come to new growth points and open up the imagination. The EPS for 16 and 17 years is expected to be 0.18 and 0.26 yuan, and the PE is 54.2 and 37.1 times. The “strongly recommended-A†rating is given for the first time.
Philips: The performance of each sector has grown well, and the contract value of various businesses has continued to increase.
Research institution: Pacific Securities
The company released the 2016 mid-year report. In the first half of 2016, the company achieved operating income of 826 million yuan, a year-on-year increase of 67.48%; total profit reached 151 million yuan, an increase of 240.07%; net profit attributable to owners of the parent company was 141 million yuan, an increase of 274.39%. For the first time, the company gave an “overweight†investment rating. It is estimated that the company's operating income in 2016/2017/2018 is 2.655 billion yuan, 3.719 billion yuan and 4.968 billion yuan respectively; the net profit attributable to the parent company of the listed company is 593 million yuan, 851 million yuan and 1.164 billion yuan respectively; The stock returns were 0.41 yuan, 0.59 yuan and 0.81 yuan respectively; the corresponding dynamic PEs were 30.15 times, 20.95 times and 15.26 times respectively. We are optimistic about the deep accumulation of company technology and channels, and we are optimistic about the continuous growth of the company's four business segments. For the first time, the company gave an investment rating of “overweightâ€.
Extension of the new energy: manufacturing + operation to help the performance of high-speed growth, actively engaged in the fight for photovoltaic
Research institution: Dongxing Securities
Event: On August 24th, Tuo Rixin was able to issue a semi-annual report. In the first half of 2016, the consolidated operating income was 641 million yuan, up 178.63% year-on-year; the net profit attributable to shareholders of listed companies was 58 million yuan, up 381.18% year-on-year. The realization of non-net profit attributable to shareholders of listed companies was RMB 50 million, a year-on-year increase of 782.47%. Among them, the company achieved operating income of 315 million yuan in the second quarter, a year-on-year increase of 484%.
Viewpoint: Seize the opportunity to move with the “trendâ€, semi-annual report high growth During the reporting period, the company's performance increased significantly, mainly because the company seized the opportunity of the first half of the photovoltaic market to rush to install, actively promote the development and investment of the photovoltaic industry chain. And construction, photovoltaic power generation revenue and component sales increased significantly. On the other hand, the company's grid-connected photovoltaic power station project gradually released electricity revenue in the first half of 2016, achieving electricity revenue of 125 million yuan, a year-on-year increase of 164.93%, which brought good profit to the company.
Conclusion: With the continuous tilt of the national policy and the continuous expansion of the company's production capacity, the company's component production and sales and photovoltaic power plant operating income will have a broad future, and the company's performance will enter a rapid growth track. It is estimated that the company's operating income in 2016-2018 is 1.425 billion yuan, 2.165 billion yuan and 2.833 billion yuan respectively; net profit is 125 million yuan, 197 million yuan and 272 million yuan respectively; EPS is 0.20 yuan, 0.32 yuan and 0.44 yuan respectively. Corresponding PEs were 48.39, 30.80 and 22.34, respectively, and the first coverage gave the company a "strongly recommended" rating.
Mengcao Ecology: PPP Business Drives High Growth Strongly Recommended Rating
Research institution: Ping An Securities
On August 25, 2016, Mengcao Ecology released the semi-annual report for 2016. The company achieved operating income of 1.059 billion yuan and net profit of 123 million yuan in the first half of the year, an increase of 17.65% and 8.92%, and EPS of 0.13 yuan.
In the hand orders, maintain high growth: the company signed a contract of 2.58 billion in the report period, an increase of 116.97%. We have calculated the order data published by the company's mid-year report. At present, the company has orders for 8.387 billion yuan, confirmed revenue orders of 2.668 billion, pending orders of 5.719 billion, and deducted PPP projects after the execution of orders of 1.988 billion, respectively, the company's last year's revenue of 323% 107%. As the only “ecological environment + garden company†in Inner Mongolia, a large number of on-hand orders and potential PPP projects ensure that the company will continue to maintain high growth in the next two years.
Gross profit declined rapidly and the cost was high. The company's gross profit margin decreased by 3.6% in the first half of the year and management expenses decreased by 2.2%, which was the main reason for the slower growth of the company's profit. As the company's EPC business is lower than the PPP business gross margin, we expect the company's gross profit to improve as the PPP project revenue recognition increases in the second half of the year. The increase in management expenses was mainly due to the fact that the company confirmed the expenses incurred by the purchase during the reporting period. We expect the management fees in the second half of the year to be basically the same as last year.
The speed of collection is accelerated: In the report period, the company added 310 million yuan of accounts receivable, accounting for 29% of the total revenue, which was significantly lower than that of 2014 and 2015. The company's sales of goods received 530 million yuan in cash, accounting for 50.02% of the income, and also greatly improved compared with previous years. We believe that with the advancement of Inner Mongolia's ecological construction, the quality of the company's payment will be further improved.
We maintain our earnings forecasts for the company. It is predicted that the main business income of the company from 2016 to 2018 will be 2.08 billion, 2.42 billion, and 2.76 billion yuan respectively; the earnings per share will be 0.19, 0.22, and 0.24 yuan respectively.
Considering that the company can maintain rapid growth in the next two years, while the cash flow is steadily improving, maintain a “strongly recommended†rating.
Risk warning: The progress of the PPP project is slow; the number of new projects is small; the rate of returning funds is slowing down in the second half of the year.
Jinglan Technology: The position of Nengke Energy Saving Platform demonstrates the future development is worth looking forward to
Research Institute: Changjiang Securities
Recently, the company's controlling subsidiary Jinglan Nengke and Sinochem Chemical Science and Technology Research Center General Hospital and Chinachem Carbon Asset Management (Beijing) Co., Ltd. signed a "Cooperation Agreement for Energy-saving Technical Transformation Project" through friendly consultation.
Cooperating with Sinochem General Institute to verify the technology and market expansion capabilities of Nengke, the cooperation is only the beginning, and it is expected to continue to replicate within the Sinochem system in the future. This cooperation is mainly aimed at 35 potential energy-saving technological transformation projects in six categories within Sinochem Group. The company and Sinochem General Hospital and Chinachem Carbon Asset Management (Beijing) Co., Ltd. (subordinate to China Energy Conservation and Environmental Protection Group) firstly classified coal gasification catalysts, spent steam recovery and waste heat recovery in six categories. The first batch of cooperation projects were carried out. The first batch of cooperation projects include: Huaxing Petrochemical, Qingdao Anbang, Qingping Phosphorus Waste Recycling Project, Hebei Xinji, Henan Huayu Hengtong Coal Gasification Catalyst Project, which is expected to be completed in the fourth quarter of 2016. . The company has explored the business model through the first batch of projects this time, providing experience for continued cooperation in the later period.
As a company's energy-saving platform, Jinglan Nengke has a good development momentum and will become another major growth point for the company in addition to water-saving irrigation and smart cities. Jinglan Nengke was established in May 2015. The company holds 51% of the shares. Since its establishment, it has successively won the project of Henan Lantianhe Chemical Technology Co., Ltd., Linzhou Fengbao Pipe Industry Co., Ltd. and Guxian Lida Coking Co., Ltd. The project and energy-saving business have a rapid pace of development. This time, the cooperation with Sinochem General Administration and China Energy Conservation has achieved a significant improvement in both the scope of cooperation and the scope of cooperation. Jinglan Nengke will become the company's energy-saving business platform. Another major growth point in the company's smart ecosystem.
The company has resource endowments, management has a pattern, ability, and the core government resource realization model has great potential. The company's major shareholders have outstanding capabilities and are proven in their respective fields. The company actively lays out the ecological and environmental protection field, with management resources docking as the core development model, and the strategic level is far-sighted. The platform business development has tension and is reproducible.
Earnings forecast and investment advice. The company's market value is small, the major shareholder's strategic thinking is clear, and its strength is strong: as a unique green ecological standard in the secondary market, the future development is worth looking forward to. The EPS of the company is expected to be 0.47, 1.20, and 2.08 in 2016-208, respectively, and the corresponding PEs are 49x, 20x, and 12x, respectively, maintaining the “Buy†rating!
Risk warning: systemic risk, acquisition wind direction, project progress is less than expected risk.
Guoyuan Securities: Recommended by the state-owned enterprise reform Dongfeng
Research institution: Ping An Securities
The company announced the 2016 semi-annual report. In the first half of the year, it achieved operating income of 1.403 billion yuan, down 61.24% year-on-year; realized net profit of 511 million yuan, down 72.94% year-on-year, and EPS was 0.26 yuan. As of the end of the first half of the year, the equity of the returning shareholders was 19.595 billion yuan, a year-on-year decrease of 1.70%.
Revenue and net profit decreased sharply year-on-year. The company's revenue from brokerage and self-operated business was dragged down: the company achieved operating income of 1.403 billion yuan in the first half of 2016, a sharp decline of 61.24% year-on-year, and a net profit of 511 million yuan, a year-on-year decline of 72.94%. The sharp decline in revenue and net profit was mainly due to the large decline in brokerage business and self-operated business, which decreased by 67.11% and 76.27% respectively.
The proportion of brokerage and self-operated income decreased, and the proportion of investment bank and interest net income increased. Compared with the business structure at the end of 2015, the brokerage business still occupied the first place in the first half of 2016, accounting for 36.5%, down 8.7%. Revenue from the business accounted for 20.4%, down 7.2%; asset management business accounted for 1.4%, down 0.8%; investment banking business accounted for 12.8%, up 7.1%, and interest net income accounted for 27.0%, rising 7.8%.
The income from investment banking business increased, and the proportion of active management business in the asset management business increased: the company's investment banking business revenue in the first half of 2016 increased by 8.9% year-on-year, and completed three refinancing, three credit restructuring projects and seven bond projects, the new three board. 30 listed companies; the company's revenue management business in the first half of 2016 only fell less than 20% year-on-year, mainly due to the rapid growth of active management business.
The employee stock ownership plan is on the way, and the future exhibition will be more dynamic: the company will release the revision of the employee stock ownership plan in August, and the planned stock repurchase will not exceed 29.56 million shares, accounting for no more than 1.5% of the total share capital. 14.57 yuan. If the employee stock ownership plan is implemented, it will greatly improve the company's operating efficiency and inject strong vitality into the company's exhibition.
The fixed increase will help to expand the capital strength: On July 26, the company announced that the non-publicly accepted A-shares will not exceed 290 million shares, and the total amount of funds raised will not exceed 4.287 billion yuan, which will be used to expand the credit transaction business and self-operated business. Asset management business and supplementary working capital. If the growth is successful, the company's capital strength will be further expanded, which is expected to bring further improvement in business model and profitability.
Backed by the major shareholder Guoyuan Group, benefiting from the reform advantages of state-owned enterprises: the company's major shareholder is Guoyuan Group, which is a state-owned and wholly-owned large-scale investment enterprise in Anhui Province. The company relies on big trees to enjoy comprehensive financial advantages and utilize synergies and Model economy and enhance competitiveness in the securities industry. At the same time, along with the reform of state-owned assets in Anhui, as the largest securities company in Anhui Province and the only listed financial platform, Guoyuan Securities has the opportunity to participate in the state-owned enterprise reform project, providing a large number of business opportunities for the company.
Investment suggestion: The company relies on the major shareholder Guoyuan Group to enjoy the advantages of comprehensive finance, which will benefit from the numerous business opportunities brought about by the reform of state-owned enterprises. At the same time, the employee stock ownership plan will inject strong vitality into the company's exhibition, and The addition of approvals will help expand the company's capital strength. It is estimated that the net profit of the company in 2016 and 2017 will be 1.172 billion yuan and 2.529 billion yuan respectively, corresponding to 33.3 times and 15.4 times of PE respectively. We are optimistic about the company's future sales and maintain the “recommended†investment rating.
Risk warning: macroeconomic downturn exceeded expectations, market volatility risk, policy risk.
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Huayuan Packaging: Metal Packaging Leading Position Buy Rating
Research institution: Soochow Securities
In the first half of 2016, the results were in line with expectations. Net profit was +62% YoY in 2016. H1 operating income was 465 million yuan, down +4.84% year-on-year. Net profit attributable to mother was 64.393 million yuan, up +62.0% year-on-year, in line with expectations. According to the products, the chemical cans accounted for 70.54% of the chemical cans were -3.1%, which was 330 million yuan; the revenue accounted for 19.14% of the printing and processing +100.9%, which was 0.9 billion yuan. We believe that the company's profit growth rate is far greater than the income growth rate: the decline in raw material tinplate and cold rolled sheet prices led to a decline in operating income, while the sales of chemical tanks increased significantly in net profit growth; The release of capacity of the project also helps to improve profitability and increase performance.
Gross profit margin increased steadily and increased by 5.49 percentage points year-on-year. The scale effect showed a comprehensive gross profit margin of 27.60% in the first half of 2016, compared with +5.49pct year-on-year.
In terms of products, the gross profit margins of chemical tanks and printing processing were 28.82% and 19.24%, respectively, +6.89pct and -6.4pct. The increase in gross profit margin is mainly due to the scale effect. We judge that in the future, large-scale enterprises such as Huayuan Packaging are expected to increase market share by expanding production capacity and rebuilding high-speed production lines, becoming an industry integrator. The company mainly produces chemical tanks, all of which are three-piece tanks. It has the characteristics of small batch size and many tank types. The production process is more complicated and the gross profit margin is generally relatively high. In addition, the company's profitability is ahead of the industry. We believe that the main reasons are: 1) complete range of chemical tanks to meet the diversified needs of customers; 2) have a complete business chain to increase customer stickiness; 3) localized support, reduce transportation costs. The three expense ratios totaled 10.94%, compared with +0.06pct year-on-year, and remained basically stable. The financial expense ratio decreased by 1.22pct due to repayment of bank loans.
The downstream market has unlimited potential and there is a strong guarantee for future sales. China's metal packaging industry reached 265.5 billion in 2014, achieving sales revenue of 92.1 billion yuan, with an average annual growth rate of 10% in the past 10 years. China is still the second largest producer of packaging products in the world after the United States. In the past ten years, China's coatings industry compound growth rate reached 17.62%, real estate destocking + 36 million sets of affordable housing + "secondary decoration" to promote the rapid development of the coatings market, and its gross profit margin as high as 60%, for paint manufacturers, It is not sensitive to the price of packaging cans and has higher requirements for quality. The reasons are as follows: 1) Metal packaging cans are just for production in the coatings industry; 2) Although metal packaging barrels account for less than 10% of the cost of brand paints, the quality of packaging can have a great effect on product quality and image; 3) The large-scale supply test of the supplier level and the economic transportation range of 300 km of chemical tanks lead to limited supplier selection, so once the cooperation will last for a long time.
Stone of other mountains: Looking at the future transformation of the company from the development process of Toyo cans in Japan We believe that the development of Dongyang cans in the industry has great reference significance for the company's future development path. Since 2011, the company has acquired the US StolleMachinery and successfully transformed from Japan's largest packaging product manufacturer to the world's largest two-piece tank packaging solution provider. It has once again entered a period of rapid development, with operating income rising from 706.5 billion yen in 2011. To 784.3 billion yen in 2015. The success of the acquisition of Stolle marks the company's high-end manufacturing industry that transforms high-margin equipment from the packaging industry. We expect Huayuan Packaging to replicate this development path in the future. At present, most of the equipment is non-standard and self-made. In the future, it is expected to continue to improve the industrial chain and transform into a high value-added equipment manufacturing industry.
The sales are guaranteed to be stable, and the high-end customer binding development helps the future development of the main customers are Aksu and Nippon, accounting for more than 50% of sales. The company has more than ten years of cooperation experience with both major customers and has a stable relationship. Its sales contract adopts cost-plus pricing to ensure a certain profit rate, and the production adopts the mode of “sales production + planned reserve†to flexibly respond to market demand. Nippon expects CAGR=89% in China in the next three years. We expect the company to stand in the air as an upstream product provider and its performance will rise rapidly.
Earnings Forecast and Investment Proposal: The company continues to rely closely on its major customers AkzoNobel and Nippon, and continues to develop its business with the expansion of downstream business and integration of small brands. At the same time continue to transform into a smart package overall solution service provider. We expect the company's EPS for 2016-2018 to be 0.99 yuan, 1.60 yuan, 2.33 yuan, corresponding to PE of 56, 34, 24X, maintaining a "buy" rating.
Risk warning: Industry competition is higher than expected, and sales revenue of major customers is less than expected.
Haley: The production capacity of automotive wire boosts the performance of fast-growing buy rating
Research institution: Pacific
The company announced its semi-annual report on August 24, and realized operating income of 1.207 billion yuan in the first six months of the year, up 16.71% year-on-year; net profit attributable to shareholders of listed companies was 146 million yuan, up 26.61% year-on-year; non-net profit was 139 million yuan. The year-on-year increase was 31.64%; the EPS was 0.30 yuan; the weighted average return on equity was 6.79%, an increase of 1.14 percentage points. The company also predicts that the net profit attributable to shareholders of listed companies from January to September 2016 will be 220 million yuan to 2.5 yuan, a year-on-year increase of 30%-50%.
In the first half of the year, the smooth certification of tire cord fabrics and the downstream bulk supply and the complete production of 200 square meters of stone-plastic flooring were the main driving force for the growth of performance. From the revenue point of view, tire cord fabric revenue of 174 million yuan, an increase of 72.24%; decorative materials 107 million yuan, an increase of 73.46%; polyester industrial yarn 706 million yuan, an increase of 9.31%. At the beginning of this year, the company's 15,000 tons of high-mode low-shrinkage wire was put into production, and the sales volume of 15,000 tons of cord fabrics matched with the downstream was mainly due to the successful target certification. At present, more than 30 certified tire manufacturers have entered the batch. There are close to 20 in the stage, such as international brand customers such as Sumitomo, Michelin, Ma (Mainland), Hantai, Cooper, Zhongce, Triangle, etc. are gradually increasing. In terms of decorative materials, the first 200 square meters of stone-plastic floor production capacity is fully launched, which is another new market segment directly facing consumers, in addition to high value-added products such as ceiling film and tarpaulin.
In the short term, with the production of 20,000 tons of safety belt silk, 20,000 tons of polyester airbag wire and the upcoming production of 2 million square meters of stone plastic flooring, the company's performance will continue to maintain rapid growth. The company's 20,000 tons of safety belt yarn and 20,000 tons of polyester airbag yarn were successfully put into operation in the first half of this year. At present, the company is actively promoting the certification of products, and the performance is on the verge. The company currently has a production capacity of 190,000 tons of polyester industrial yarn, including 61,500 tons of ordinary industrial yarn capacity, 56,000 tons of high-mode low-shrinkage yarn capacity, 32,500 tons of airbag wire production capacity and 40,000 tons of safety belt wire. In addition, the company has a capacity of 30,000 tons of cord fabric, 200 square meters of stone-plastic flooring and 110 million square meters of light box cloth production capacity.
A large number of new production capacity of the company will be put into production in 2016-2018. Among them, polyester industrial yarn is under construction capacity of 40,000 tons (all for automobile wire). The first phase of 20,000 tons is expected to be put into operation in 2018, and the curtain fabric is under construction capacity of 30,000 tons. The first phase of 15,000 tons of production capacity is expected to be put into operation in 2018, and the production capacity of 200 square meters of stone and plastic flooring under construction will be put into operation in the second half of this year. In the short-term, the company's production capacity will be greatly improved after the construction capacity is put into operation, which will strongly support the sustained high growth of performance.
In the long run, the replacement of nylon 66 with polyester airbag wire and polyester safety belt yarn is the trend of the times. The company will enjoy the rapid growth brought by the continuous expansion of the industry space. In terms of polyester airbag yarn, the polyester airbag yarn product developed by the company together with TRW, the global leader in automotive safety systems, has a global market share of about 80% in the polyester airbag market. However, this does not constitute an industry. Ceiling. Because polyester airbag yarn products account for only about 10% of the global airbag filaments, according to public information, polyester airbags have advantages in terms of technology, product quality and cost performance, and can be reduced by about 50% in terms of cost. At present, the use of polyester airbag wire is a representative of the high-tech of downstream automobile companies. The replacement of nylon 66 is a general trend. Currently, it is widely used in Audi, BMW, Mercedes-Benz, Chrysler, Volvo, Volkswagen, etc. The number of airbags used in a car will increase, and the market for polyester airbag wires will increase significantly. At the same time, the company's products with excellent performance and high-end routes will also grow together with the development of downstream car companies, fully enjoying the continuous growth of the industry's continuous growth.
Maintain “Buy†rating: At present, the company's polyester industrial yarn product structure is continuously optimized, and the proportion of high value-added products such as automotive wire is steadily increasing. Following the gradual release of the company's three differentiated products, the profitability will be greatly improved. We are optimistic about the future development of the company. According to the public information, we estimate that the company's earnings per share for 2016-2018 are 0.61 yuan, 0.80 yuan and 1.03 yuan respectively, giving the company a target price of 21 yuan, corresponding to the company's 2016-2018 PE is 34, respectively. 26, 20 times, with a strong margin of safety.
Risk warning: product certification is less than expected, downstream demand is less than expected, and new projects are not progressing as expected.
Research institution: Everbright Securities
In the first half of the year, the company's main business income was 4.976 billion yuan, up 4.26% year-on-year; net profit was 318 million yuan, up 92.17% year-on-year (partial benefit from Wuzhen's large government subsidy of 191 million in June), and net profit after deduction was 52.75%. ; EPS 0.44 yuan, exceeding expectations. The rapid growth of non-net profit was mainly due to the increase of 26% in the net profit of Wuzhen, and the net profit of Gubei (41%) was 144 million, which was a loss compared with the same period of last year, including the real estate project “Great Wall Source†settlement of 89 million. .
In the first half of the year, gross profit margin increased by 2.4 points to 24.4%, and the proportion of scenic spots business benefiting from higher gross profit margin (83%) increased from 11.3% to 14.15%; sales expense ratio increased by 0.85 points to 10.61%, which was amortization of assets. As a result of the increase in sales promotion expenses; the administrative expense ratio increased by 0.49 points to 4.90%; the financial expense ratio increased by 0.2 points to 0.60%, due to the increase of 390 million short-term loans and 140 million long-term loans in the current period; net operating cash flow + 280 million yuan / increase of 798%, for Wuzhen received a large amount of government subsidies of 191 million; investment income of 61 million / increase 2495%, mainly due to the substantial increase in the performance of Gubei Water Town (41%).
The travel agency business (38%) is under pressure, with an income of 1.891 billion/-7.38%, but it is advancing into education, sports and tourism emerging markets. It is expected that the 2H investment in the company will decrease, which will slow down the company's performance. . Integrated marketing (accounting for 21%) revenue of 1.068 billion / +21.20%, in July, China Youth League linked to the new three board. IT services (22%) earned 1.092 billion/+8.98%. The hotel business listed the new three board in January.
Wuzhen and Gubei Water Town are expected to continue high growth, and this year Shanghai Disneyland will promote the promotion of Wuzhen passenger flow. It is predicted that the 16/17/18 EPS will be 0.66/0.77/0.92 respectively, and the current 16PE is 32 times, giving “buyâ€. Rating. Risk warning: The passenger flow in the scenic spot is not up to expectations.
Lijun shares: economic downturn results in a decline in performance, military business boosts profitability
Research institution: Cinda Securities
Event: On August 25, 2016, Lijun Co., Ltd. released its 2016 semi-annual report. During the reporting period, the company achieved operating income of 219 million yuan, a decrease of 4.47% year-on-year; real: the net profit attributable to shareholders of the parent company was 47.17 million yuan, a year-on-year decrease of 24.33%; basic earnings per share was 0.05 yuan.
Comments: The domestic economy is facing downward pressure, causing the company's performance to continue to decline. In the first half of 2016, the company's operating income decreased by 4.47% year-on-year, and the net profit of returning to the mother fell by 24.33%, mainly due to the fact that the domestic and international macroeconomic situation is not optimistic, and the domestic economy is still facing downward pressure. The company's traditional main business cement roller presses and ancillary products were affected by factors such as the decommissioning of production capacity and product sales prices in the cement and building materials industry, resulting in a 48.85% decline in revenue, which was the main reason for the decline in revenue. In terms of mine high-pressure roller presses and ancillary products, revenues rebounded sharply, up 157.72% year-on-year; roller (sub)product revenues increased by 134.82% year-on-year. During the reporting period, the company's three expenses increased by 34.82%, resulting in a significant decrease in the company's net profit than the revenue decline, mainly due to the increase in administrative expenses by 9.47% and the decrease in interest income, resulting in a 48.66% increase in financial expenses.
Expanding the military business to boost the company's profitability, and still have the imagination of M&A in the future. In September 2015, the company completed the acquisition of 100% equity of Chengdu Dekun Aviation Equipment Manufacturing Co., Ltd., and Dekun Aviation became a wholly-owned subsidiary of the company, completing the first step from the transformation of ordinary manufacturing to military manufacturing. Dekun Aviation's main aviation parts and tooling design and manufacturing, in the October-December 2015 and the first half of 2016, respectively, the company achieved a net profit of 17,779,600 yuan and 6,204,700 yuan, significantly improving the company's overall profitability. It is worth noting that although the company's financial expenses have risen during the reporting period, it is still negative, and the company is currently in ample money. Such low financial pressure is rare in the current domestic manufacturing industry “cold winterâ€. Considering the promotion effect of Dekun Aviation's acquisition on the company's profitability, it is considered that the company's future business development in the military industry and related sectors is still worth looking forward to.
Earnings forecast and rating: The company's 16-18 year EPS is expected to be 0.12 yuan, 0.13 yuan, 0.14 yuan, according to the 2016-08-24 closing price, corresponding to PE: 73 times, continue to maintain the "overweight" rating.
Waihai shares: Q3 performance is expected to improve significantly, actively transforming the second main business of entertainment
Research institution: China Merchants Securities
Event: The company's 2016H1 realized revenue of 848 million yuan, down 0.53% year-on-year; net profit was 13.301 million yuan, down 14.86% year-on-year, EPS was 0.02 yuan, and the first three quarters expected to increase by 30%-80%.
16-year performance can be expected, the controlling shareholder large proportion of subscription super-supervisor increased holding confidence: 16H1 achieved revenue of 848 million yuan, down 0.53%, net profit of 13.301 million yuan, down 14.86%, the main reason can be summarized as: 1) industry Poor prosperity and fierce competition, the company's gross profit margin decreased by 2.09 pp to 11.05%; 2) the project started to work slowly; 3) the provision for asset impairment losses increased by 7,480,100 yuan. H1 gross profit margin decreased by 2.09 pp to 11.05%, and net profit margin decreased by 0.26 pp, mainly because 1) business tax and surcharge decreased by 180.06 million yuan; 2) financial expense ratio and management expense ratio decreased by 0.32 and 0.12 pp, respectively. The company's 2016 results are bound to usher in an inflection point, mainly because: 1) the application of PPP mode increases, the volume of individual projects is increasing; 2) the old BT projects enter the repurchase period. In terms of cash flow, the net operating cash flow for the first half of this year was -235 million yuan, which was mainly due to the payment of investment intention margin and project integrity deposit. At the end of May 2016, the company revised the fixed increase plan for the third time. Among them, the company's largest shareholder, Weihai Holdings, subscribed 60.73%, and individual shareholder Li Chengcheng was one of the company's actual controllers, Feng Quanhong's daughter-in-law, with a subscription ratio of 10.73%. In addition, the company's chairman, wife, vice-chairman, deputy general manager and many other executives increased their shareholdings in the company. As of the end of January, they had increased their shareholdings by 5.67%. These fully demonstrate the company's high-level confidence in the company's future development.
Active transformation: to create the second main business of cultural entertainment + main business extension company while deepening the main business, while actively exploring the secondary industry, breaking through a single operation, the company's transformation can be reduced to: 1) the implementation of dual main business model, focusing on cultural entertainment Industry, etc.; 2) Main business extension, environmental protection, involving water treatment, sludge solidification, soil remediation, etc. At present, the company has decided to take the cultural and entertainment industry as its second main business. It plans to focus on building a professional service chain in the process of industrialization of the cultural and entertainment industry, providing key services for the creative, production, distribution and operation of film, animation, games and other content. tool. The company will develop by endogenous (self-built related companies and platforms) and extension (through foreign investment and mergers and acquisitions, accelerate the industrial chain layout, including cultural and entertainment industry insurance and guarantee, original content tool platform, etc.), the main development direction in the future is vertical Integrate the local industry chain, layout the flow and content of emerging markets, and lay out emerging technology directions. The company has established a second main business division and a relatively independent operation management system that meets the characteristics of the cultural and entertainment industry, and strives to become a leading service provider in the domestic cultural entertainment industrialization process within five years.
Based on the main business, vigorously develop the PPP model and help the main industry to grow at a high level: starting from 2015, the company will vigorously develop PPP projects and build an integrated service provider of “investment, construction and operation†to realize the general contracting from construction to general contracting of the project. The business model changed. From the beginning of 2016 to the present, PPP announced orders of 14.436 billion yuan. In 2015, PPP announced orders for the whole year was 907 million yuan. Relying on the unique development advantages in Zhejiang Province, the company has formed a market development strategy of “provincial fixed point, provincial distribution, and foreign pilotâ€, forming a market network combining point, surface, and point.
4. Actively develop PPP, the second main business of entertainment enters the imagination space, and gives the “strongly recommended-A†rating company to the main industry for the first time, and actively develops PPP projects. The 2016 performance can be expected, and at the same time, the second main business of culture and entertainment is built. Come to new growth points and open up the imagination. The EPS for 16 and 17 years is expected to be 0.18 and 0.26 yuan, and the PE is 54.2 and 37.1 times. The “strongly recommended-A†rating is given for the first time.
Philips: The performance of each sector has grown well, and the contract value of various businesses has continued to increase.
Research institution: Pacific Securities
The company released the 2016 mid-year report. In the first half of 2016, the company achieved operating income of 826 million yuan, a year-on-year increase of 67.48%; total profit reached 151 million yuan, an increase of 240.07%; net profit attributable to owners of the parent company was 141 million yuan, an increase of 274.39%. For the first time, the company gave an “overweight†investment rating. It is estimated that the company's operating income in 2016/2017/2018 is 2.655 billion yuan, 3.719 billion yuan and 4.968 billion yuan respectively; the net profit attributable to the parent company of the listed company is 593 million yuan, 851 million yuan and 1.164 billion yuan respectively; The stock returns were 0.41 yuan, 0.59 yuan and 0.81 yuan respectively; the corresponding dynamic PEs were 30.15 times, 20.95 times and 15.26 times respectively. We are optimistic about the deep accumulation of company technology and channels, and we are optimistic about the continuous growth of the company's four business segments. For the first time, the company gave an investment rating of “overweightâ€.
Extension of the new energy: manufacturing + operation to help the performance of high-speed growth, actively engaged in the fight for photovoltaic
Research institution: Dongxing Securities
Event: On August 24th, Tuo Rixin was able to issue a semi-annual report. In the first half of 2016, the consolidated operating income was 641 million yuan, up 178.63% year-on-year; the net profit attributable to shareholders of listed companies was 58 million yuan, up 381.18% year-on-year. The realization of non-net profit attributable to shareholders of listed companies was RMB 50 million, a year-on-year increase of 782.47%. Among them, the company achieved operating income of 315 million yuan in the second quarter, a year-on-year increase of 484%.
Viewpoint: Seize the opportunity to move with the “trendâ€, semi-annual report high growth During the reporting period, the company's performance increased significantly, mainly because the company seized the opportunity of the first half of the photovoltaic market to rush to install, actively promote the development and investment of the photovoltaic industry chain. And construction, photovoltaic power generation revenue and component sales increased significantly. On the other hand, the company's grid-connected photovoltaic power station project gradually released electricity revenue in the first half of 2016, achieving electricity revenue of 125 million yuan, a year-on-year increase of 164.93%, which brought good profit to the company.
Conclusion: With the continuous tilt of the national policy and the continuous expansion of the company's production capacity, the company's component production and sales and photovoltaic power plant operating income will have a broad future, and the company's performance will enter a rapid growth track. It is estimated that the company's operating income in 2016-2018 is 1.425 billion yuan, 2.165 billion yuan and 2.833 billion yuan respectively; net profit is 125 million yuan, 197 million yuan and 272 million yuan respectively; EPS is 0.20 yuan, 0.32 yuan and 0.44 yuan respectively. Corresponding PEs were 48.39, 30.80 and 22.34, respectively, and the first coverage gave the company a "strongly recommended" rating.
Mengcao Ecology: PPP Business Drives High Growth Strongly Recommended Rating
Research institution: Ping An Securities
On August 25, 2016, Mengcao Ecology released the semi-annual report for 2016. The company achieved operating income of 1.059 billion yuan and net profit of 123 million yuan in the first half of the year, an increase of 17.65% and 8.92%, and EPS of 0.13 yuan.
In the hand orders, maintain high growth: the company signed a contract of 2.58 billion in the report period, an increase of 116.97%. We have calculated the order data published by the company's mid-year report. At present, the company has orders for 8.387 billion yuan, confirmed revenue orders of 2.668 billion, pending orders of 5.719 billion, and deducted PPP projects after the execution of orders of 1.988 billion, respectively, the company's last year's revenue of 323% 107%. As the only “ecological environment + garden company†in Inner Mongolia, a large number of on-hand orders and potential PPP projects ensure that the company will continue to maintain high growth in the next two years.
Gross profit declined rapidly and the cost was high. The company's gross profit margin decreased by 3.6% in the first half of the year and management expenses decreased by 2.2%, which was the main reason for the slower growth of the company's profit. As the company's EPC business is lower than the PPP business gross margin, we expect the company's gross profit to improve as the PPP project revenue recognition increases in the second half of the year. The increase in management expenses was mainly due to the fact that the company confirmed the expenses incurred by the purchase during the reporting period. We expect the management fees in the second half of the year to be basically the same as last year.
The speed of collection is accelerated: In the report period, the company added 310 million yuan of accounts receivable, accounting for 29% of the total revenue, which was significantly lower than that of 2014 and 2015. The company's sales of goods received 530 million yuan in cash, accounting for 50.02% of the income, and also greatly improved compared with previous years. We believe that with the advancement of Inner Mongolia's ecological construction, the quality of the company's payment will be further improved.
We maintain our earnings forecasts for the company. It is predicted that the main business income of the company from 2016 to 2018 will be 2.08 billion, 2.42 billion, and 2.76 billion yuan respectively; the earnings per share will be 0.19, 0.22, and 0.24 yuan respectively.
Considering that the company can maintain rapid growth in the next two years, while the cash flow is steadily improving, maintain a “strongly recommended†rating.
Risk warning: The progress of the PPP project is slow; the number of new projects is small; the rate of returning funds is slowing down in the second half of the year.
Jinglan Technology: The position of Nengke Energy Saving Platform demonstrates the future development is worth looking forward to
Research Institute: Changjiang Securities
Recently, the company's controlling subsidiary Jinglan Nengke and Sinochem Chemical Science and Technology Research Center General Hospital and Chinachem Carbon Asset Management (Beijing) Co., Ltd. signed a "Cooperation Agreement for Energy-saving Technical Transformation Project" through friendly consultation.
Cooperating with Sinochem General Institute to verify the technology and market expansion capabilities of Nengke, the cooperation is only the beginning, and it is expected to continue to replicate within the Sinochem system in the future. This cooperation is mainly aimed at 35 potential energy-saving technological transformation projects in six categories within Sinochem Group. The company and Sinochem General Hospital and Chinachem Carbon Asset Management (Beijing) Co., Ltd. (subordinate to China Energy Conservation and Environmental Protection Group) firstly classified coal gasification catalysts, spent steam recovery and waste heat recovery in six categories. The first batch of cooperation projects were carried out. The first batch of cooperation projects include: Huaxing Petrochemical, Qingdao Anbang, Qingping Phosphorus Waste Recycling Project, Hebei Xinji, Henan Huayu Hengtong Coal Gasification Catalyst Project, which is expected to be completed in the fourth quarter of 2016. . The company has explored the business model through the first batch of projects this time, providing experience for continued cooperation in the later period.
As a company's energy-saving platform, Jinglan Nengke has a good development momentum and will become another major growth point for the company in addition to water-saving irrigation and smart cities. Jinglan Nengke was established in May 2015. The company holds 51% of the shares. Since its establishment, it has successively won the project of Henan Lantianhe Chemical Technology Co., Ltd., Linzhou Fengbao Pipe Industry Co., Ltd. and Guxian Lida Coking Co., Ltd. The project and energy-saving business have a rapid pace of development. This time, the cooperation with Sinochem General Administration and China Energy Conservation has achieved a significant improvement in both the scope of cooperation and the scope of cooperation. Jinglan Nengke will become the company's energy-saving business platform. Another major growth point in the company's smart ecosystem.
The company has resource endowments, management has a pattern, ability, and the core government resource realization model has great potential. The company's major shareholders have outstanding capabilities and are proven in their respective fields. The company actively lays out the ecological and environmental protection field, with management resources docking as the core development model, and the strategic level is far-sighted. The platform business development has tension and is reproducible.
Earnings forecast and investment advice. The company's market value is small, the major shareholder's strategic thinking is clear, and its strength is strong: as a unique green ecological standard in the secondary market, the future development is worth looking forward to. The EPS of the company is expected to be 0.47, 1.20, and 2.08 in 2016-208, respectively, and the corresponding PEs are 49x, 20x, and 12x, respectively, maintaining the “Buy†rating!
Risk warning: systemic risk, acquisition wind direction, project progress is less than expected risk.
Guoyuan Securities: Recommended by the state-owned enterprise reform Dongfeng
Research institution: Ping An Securities
The company announced the 2016 semi-annual report. In the first half of the year, it achieved operating income of 1.403 billion yuan, down 61.24% year-on-year; realized net profit of 511 million yuan, down 72.94% year-on-year, and EPS was 0.26 yuan. As of the end of the first half of the year, the equity of the returning shareholders was 19.595 billion yuan, a year-on-year decrease of 1.70%.
Revenue and net profit decreased sharply year-on-year. The company's revenue from brokerage and self-operated business was dragged down: the company achieved operating income of 1.403 billion yuan in the first half of 2016, a sharp decline of 61.24% year-on-year, and a net profit of 511 million yuan, a year-on-year decline of 72.94%. The sharp decline in revenue and net profit was mainly due to the large decline in brokerage business and self-operated business, which decreased by 67.11% and 76.27% respectively.
The proportion of brokerage and self-operated income decreased, and the proportion of investment bank and interest net income increased. Compared with the business structure at the end of 2015, the brokerage business still occupied the first place in the first half of 2016, accounting for 36.5%, down 8.7%. Revenue from the business accounted for 20.4%, down 7.2%; asset management business accounted for 1.4%, down 0.8%; investment banking business accounted for 12.8%, up 7.1%, and interest net income accounted for 27.0%, rising 7.8%.
The income from investment banking business increased, and the proportion of active management business in the asset management business increased: the company's investment banking business revenue in the first half of 2016 increased by 8.9% year-on-year, and completed three refinancing, three credit restructuring projects and seven bond projects, the new three board. 30 listed companies; the company's revenue management business in the first half of 2016 only fell less than 20% year-on-year, mainly due to the rapid growth of active management business.
The employee stock ownership plan is on the way, and the future exhibition will be more dynamic: the company will release the revision of the employee stock ownership plan in August, and the planned stock repurchase will not exceed 29.56 million shares, accounting for no more than 1.5% of the total share capital. 14.57 yuan. If the employee stock ownership plan is implemented, it will greatly improve the company's operating efficiency and inject strong vitality into the company's exhibition.
The fixed increase will help to expand the capital strength: On July 26, the company announced that the non-publicly accepted A-shares will not exceed 290 million shares, and the total amount of funds raised will not exceed 4.287 billion yuan, which will be used to expand the credit transaction business and self-operated business. Asset management business and supplementary working capital. If the growth is successful, the company's capital strength will be further expanded, which is expected to bring further improvement in business model and profitability.
Backed by the major shareholder Guoyuan Group, benefiting from the reform advantages of state-owned enterprises: the company's major shareholder is Guoyuan Group, which is a state-owned and wholly-owned large-scale investment enterprise in Anhui Province. The company relies on big trees to enjoy comprehensive financial advantages and utilize synergies and Model economy and enhance competitiveness in the securities industry. At the same time, along with the reform of state-owned assets in Anhui, as the largest securities company in Anhui Province and the only listed financial platform, Guoyuan Securities has the opportunity to participate in the state-owned enterprise reform project, providing a large number of business opportunities for the company.
Investment suggestion: The company relies on the major shareholder Guoyuan Group to enjoy the advantages of comprehensive finance, which will benefit from the numerous business opportunities brought about by the reform of state-owned enterprises. At the same time, the employee stock ownership plan will inject strong vitality into the company's exhibition, and The addition of approvals will help expand the company's capital strength. It is estimated that the net profit of the company in 2016 and 2017 will be 1.172 billion yuan and 2.529 billion yuan respectively, corresponding to 33.3 times and 15.4 times of PE respectively. We are optimistic about the company's future sales and maintain the “recommended†investment rating.
Risk warning: macroeconomic downturn exceeded expectations, market volatility risk, policy risk.
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Huayuan Packaging: Metal Packaging Leading Position Buy Rating
Research institution: Soochow Securities
In the first half of 2016, the results were in line with expectations. Net profit was +62% YoY in 2016. H1 operating income was 465 million yuan, down +4.84% year-on-year. Net profit attributable to mother was 64.393 million yuan, up +62.0% year-on-year, in line with expectations. According to the products, the chemical cans accounted for 70.54% of the chemical cans were -3.1%, which was 330 million yuan; the revenue accounted for 19.14% of the printing and processing +100.9%, which was 0.9 billion yuan. We believe that the company's profit growth rate is far greater than the income growth rate: the decline in raw material tinplate and cold rolled sheet prices led to a decline in operating income, while the sales of chemical tanks increased significantly in net profit growth; The release of capacity of the project also helps to improve profitability and increase performance.
Gross profit margin increased steadily and increased by 5.49 percentage points year-on-year. The scale effect showed a comprehensive gross profit margin of 27.60% in the first half of 2016, compared with +5.49pct year-on-year.
In terms of products, the gross profit margins of chemical tanks and printing processing were 28.82% and 19.24%, respectively, +6.89pct and -6.4pct. The increase in gross profit margin is mainly due to the scale effect. We judge that in the future, large-scale enterprises such as Huayuan Packaging are expected to increase market share by expanding production capacity and rebuilding high-speed production lines, becoming an industry integrator. The company mainly produces chemical tanks, all of which are three-piece tanks. It has the characteristics of small batch size and many tank types. The production process is more complicated and the gross profit margin is generally relatively high. In addition, the company's profitability is ahead of the industry. We believe that the main reasons are: 1) complete range of chemical tanks to meet the diversified needs of customers; 2) have a complete business chain to increase customer stickiness; 3) localized support, reduce transportation costs. The three expense ratios totaled 10.94%, compared with +0.06pct year-on-year, and remained basically stable. The financial expense ratio decreased by 1.22pct due to repayment of bank loans.
The downstream market has unlimited potential and there is a strong guarantee for future sales. China's metal packaging industry reached 265.5 billion in 2014, achieving sales revenue of 92.1 billion yuan, with an average annual growth rate of 10% in the past 10 years. China is still the second largest producer of packaging products in the world after the United States. In the past ten years, China's coatings industry compound growth rate reached 17.62%, real estate destocking + 36 million sets of affordable housing + "secondary decoration" to promote the rapid development of the coatings market, and its gross profit margin as high as 60%, for paint manufacturers, It is not sensitive to the price of packaging cans and has higher requirements for quality. The reasons are as follows: 1) Metal packaging cans are just for production in the coatings industry; 2) Although metal packaging barrels account for less than 10% of the cost of brand paints, the quality of packaging can have a great effect on product quality and image; 3) The large-scale supply test of the supplier level and the economic transportation range of 300 km of chemical tanks lead to limited supplier selection, so once the cooperation will last for a long time.
Stone of other mountains: Looking at the future transformation of the company from the development process of Toyo cans in Japan We believe that the development of Dongyang cans in the industry has great reference significance for the company's future development path. Since 2011, the company has acquired the US StolleMachinery and successfully transformed from Japan's largest packaging product manufacturer to the world's largest two-piece tank packaging solution provider. It has once again entered a period of rapid development, with operating income rising from 706.5 billion yen in 2011. To 784.3 billion yen in 2015. The success of the acquisition of Stolle marks the company's high-end manufacturing industry that transforms high-margin equipment from the packaging industry. We expect Huayuan Packaging to replicate this development path in the future. At present, most of the equipment is non-standard and self-made. In the future, it is expected to continue to improve the industrial chain and transform into a high value-added equipment manufacturing industry.
The sales are guaranteed to be stable, and the high-end customer binding development helps the future development of the main customers are Aksu and Nippon, accounting for more than 50% of sales. The company has more than ten years of cooperation experience with both major customers and has a stable relationship. Its sales contract adopts cost-plus pricing to ensure a certain profit rate, and the production adopts the mode of “sales production + planned reserve†to flexibly respond to market demand. Nippon expects CAGR=89% in China in the next three years. We expect the company to stand in the air as an upstream product provider and its performance will rise rapidly.
Earnings Forecast and Investment Proposal: The company continues to rely closely on its major customers AkzoNobel and Nippon, and continues to develop its business with the expansion of downstream business and integration of small brands. At the same time continue to transform into a smart package overall solution service provider. We expect the company's EPS for 2016-2018 to be 0.99 yuan, 1.60 yuan, 2.33 yuan, corresponding to PE of 56, 34, 24X, maintaining a "buy" rating.
Risk warning: Industry competition is higher than expected, and sales revenue of major customers is less than expected.
Haley: The production capacity of automotive wire boosts the performance of fast-growing buy rating
Research institution: Pacific
The company announced its semi-annual report on August 24, and realized operating income of 1.207 billion yuan in the first six months of the year, up 16.71% year-on-year; net profit attributable to shareholders of listed companies was 146 million yuan, up 26.61% year-on-year; non-net profit was 139 million yuan. The year-on-year increase was 31.64%; the EPS was 0.30 yuan; the weighted average return on equity was 6.79%, an increase of 1.14 percentage points. The company also predicts that the net profit attributable to shareholders of listed companies from January to September 2016 will be 220 million yuan to 2.5 yuan, a year-on-year increase of 30%-50%.
In the first half of the year, the smooth certification of tire cord fabrics and the downstream bulk supply and the complete production of 200 square meters of stone-plastic flooring were the main driving force for the growth of performance. From the revenue point of view, tire cord fabric revenue of 174 million yuan, an increase of 72.24%; decorative materials 107 million yuan, an increase of 73.46%; polyester industrial yarn 706 million yuan, an increase of 9.31%. At the beginning of this year, the company's 15,000 tons of high-mode low-shrinkage wire was put into production, and the sales volume of 15,000 tons of cord fabrics matched with the downstream was mainly due to the successful target certification. At present, more than 30 certified tire manufacturers have entered the batch. There are close to 20 in the stage, such as international brand customers such as Sumitomo, Michelin, Ma (Mainland), Hantai, Cooper, Zhongce, Triangle, etc. are gradually increasing. In terms of decorative materials, the first 200 square meters of stone-plastic floor production capacity is fully launched, which is another new market segment directly facing consumers, in addition to high value-added products such as ceiling film and tarpaulin.
In the short term, with the production of 20,000 tons of safety belt silk, 20,000 tons of polyester airbag wire and the upcoming production of 2 million square meters of stone plastic flooring, the company's performance will continue to maintain rapid growth. The company's 20,000 tons of safety belt yarn and 20,000 tons of polyester airbag yarn were successfully put into operation in the first half of this year. At present, the company is actively promoting the certification of products, and the performance is on the verge. The company currently has a production capacity of 190,000 tons of polyester industrial yarn, including 61,500 tons of ordinary industrial yarn capacity, 56,000 tons of high-mode low-shrinkage yarn capacity, 32,500 tons of airbag wire production capacity and 40,000 tons of safety belt wire. In addition, the company has a capacity of 30,000 tons of cord fabric, 200 square meters of stone-plastic flooring and 110 million square meters of light box cloth production capacity.
A large number of new production capacity of the company will be put into production in 2016-2018. Among them, polyester industrial yarn is under construction capacity of 40,000 tons (all for automobile wire). The first phase of 20,000 tons is expected to be put into operation in 2018, and the curtain fabric is under construction capacity of 30,000 tons. The first phase of 15,000 tons of production capacity is expected to be put into operation in 2018, and the production capacity of 200 square meters of stone and plastic flooring under construction will be put into operation in the second half of this year. In the short-term, the company's production capacity will be greatly improved after the construction capacity is put into operation, which will strongly support the sustained high growth of performance.
In the long run, the replacement of nylon 66 with polyester airbag wire and polyester safety belt yarn is the trend of the times. The company will enjoy the rapid growth brought by the continuous expansion of the industry space. In terms of polyester airbag yarn, the polyester airbag yarn product developed by the company together with TRW, the global leader in automotive safety systems, has a global market share of about 80% in the polyester airbag market. However, this does not constitute an industry. Ceiling. Because polyester airbag yarn products account for only about 10% of the global airbag filaments, according to public information, polyester airbags have advantages in terms of technology, product quality and cost performance, and can be reduced by about 50% in terms of cost. At present, the use of polyester airbag wire is a representative of the high-tech of downstream automobile companies. The replacement of nylon 66 is a general trend. Currently, it is widely used in Audi, BMW, Mercedes-Benz, Chrysler, Volvo, Volkswagen, etc. The number of airbags used in a car will increase, and the market for polyester airbag wires will increase significantly. At the same time, the company's products with excellent performance and high-end routes will also grow together with the development of downstream car companies, fully enjoying the continuous growth of the industry's continuous growth.
Maintain “Buy†rating: At present, the company's polyester industrial yarn product structure is continuously optimized, and the proportion of high value-added products such as automotive wire is steadily increasing. Following the gradual release of the company's three differentiated products, the profitability will be greatly improved. We are optimistic about the future development of the company. According to the public information, we estimate that the company's earnings per share for 2016-2018 are 0.61 yuan, 0.80 yuan and 1.03 yuan respectively, giving the company a target price of 21 yuan, corresponding to the company's 2016-2018 PE is 34, respectively. 26, 20 times, with a strong margin of safety.
Risk warning: product certification is less than expected, downstream demand is less than expected, and new projects are not progressing as expected.
Luxury warm soft velvet duvet set for the winter cold season - 5 pieces - 4 colors available, you can choose anything you want to bring your home to warm winter.
Velvet quilt cover
Nantong Yawen Textile CO., LTD , https://www.ntywtextile.com