Health and Technology (600,183) quarterly Comments: the first quarter results are expected to exceed the high growth momentum will continue
Health and Technology disclosed a quarterly report in 2017, the company 2017Q1 revenue 2.379 billion, an increase of 25.6%, attributable to shareholders of listed companies net profit of 283 million, an increase of 85.53%.
1, performance than expected, off-season is not short, net profit hit a record high.
Company Q1 attributable to shareholders of listed companies net profit of 283 million, significantly beyond our previous expectations. In the first quarter of the industry off-season holiday season, the company 17Q1 net profit relative to 16Q4 chain growth of 14.5%, a record high. The company Q1 gross margin reached 24.97%, compared to last year Q4 increased by 2.6 percentage points, compared to last year increased by 4.4 percentage points, fully reflects the January and February prices of some customers and stacking prices after last year Profitability.
2, Q2 look beyond the industry performance, the second half of the price cycle will start again.
The second quarter of the CCL industry due to inventory adjustment Some do low-end board manufacturers some price adjustment, also led to a sharp correction in the company's stock price. But according to our understanding of the main benefits of large customers in the high-end sheet, and pre-company price increases for customers is not, so the second quarter of life and no price cuts. The next year will enter the industry season, the industry last year, the overall price increase is also starting from July, we believe that the second quarter of the probability of a quarter with a flat, and with the second half of the electric car sales volume and into the consumer electronics season, 6,7 months Copper prices are expected to rise again, bringing the second half of the chain up, the annual high growth can be expected.
3, subsidiary subsidiary benefits electronic PCB business is running well, is expected in the future for the company to contribute considerable performance.
We have previously reported the analysis of the benefits of the subsidiary of the subsidiary of the subsidiary of raw materials to complete the shareholding system, the benefits of science and technology held by the benefits of electronic 12.87% of the shares transferred to the benefits of electronic management and its core employees of the partnership, to promote staff and The interests of the company convergence, is expected to promote the benefits of electronic return to the growth track. Shengyi Electronics Dongcheng factory to communications network needs high-level, high-density, high-speed board as the core products, while covering the communications terminal consumer electronics products required high-end HDI and ELIC products. Since the production, the benefits of electronic production, profits continue to improve. On April 17, Shengyi Electronic Board of Directors examined and approved the Company's second phase expansion project, plans to achieve the total capacity of 1 million feet per month in the fourth quarter of 2017, and introduced the new shareholder "Guohong Investment" by way of capital increase and expansion To raise funds for the second phase of expansion projects. Shengyi Electronics also recently in the dividend, reflected in the parent company report to pay dividends of 2.77 million, calculated by the total amount of electronic dividends reached 18.53 million, accounting for Shengyi Electronics last year net profit of 39.4%, also Show that the benefits of electronic operation is good, verify our previous analysis.
4, to maintain a strong recommendation rating, the current dynamic price-earnings ratio has been close to 15 times the proposed bargain intervention.
Maintain "strong recommendation - A" investment rating. As the domestic CCL leader, the depth of the current round of copper, CCL industrial chain up cycle, 17Q1 performance than expected, off-season profitability is not easy to upgrade again, we judge the company is expected to exceed the industry performance, the second half will enter the season, Annual high growth can be expected. The company also has long-term car, high-frequency communications and BT board and other new substrate growth momentum, the company management operations are also continuous improvement, from the subsidiary company benefits electronic operation is evident. The recent sharp rebound in the company's stock price, over-reaction of the industry off-season some negative news, the current company's dynamic price-earnings ratio has been close to 15 times the proposed bargain intervention. Maintain a strong recommendation rating and target price of 18 yuan. We forecast 17/18/19 net profit of 11.17 / 12.89 / 14.61 billion, corresponding to PE is 15.3 / 13.4 / 11.8 times, to maintain a strong recommendation rating and target price of 18 yuan.
Risk factors: the industry boom than expected, price sustainability is not enough, new business development lower than expected.