2016 revenue increased by more than 20% year-on-year, and accelerated in the fourth quarter. The company achieved operating revenue of 354 million yuan, 535 million yuan, 357 million yuan, and 788 million yuan in Q1, Q2, Q3, and Q4, respectively, a year-on-year increase of 15.40%, 6.30%, 6.74% and 45.57%, operating income increased significantly in the fourth quarter.
The robotics and logistics warehousing automation business resumed rapid growth, and the overall gross profit margin decreased slightly. In 2016, the company's industrial robots and logistics and warehousing automation business grew by 26.09% and 30.30% year-on-year, respectively, and their growth rates were approximately 17 and 35 percentage points higher than 2015 respectively. We believe that the recovery of downstream demand and the release of company production capacity are important reasons for the rapid growth of robotic and logistics warehousing automation business. The company's product gross profit margin was 31.7%, a decrease of 2.4 percentage points from 2015.
The scale effect highlights that the management fee rate has decreased significantly. In 2016, the company's sales expense ratio and administrative expense ratio were 2.3% and 13.7%, respectively, an increase of 0.5% and -0.2% respectively. In the fourth quarter of 2016, the company’s sales expense ratio and administrative expense ratio were 1.7% and 13.9%, respectively, which were respectively 0.1% and -7.9% higher than the same period of last year and decreased by 1.9% and 2.9 percentage points respectively. The sales expense rate remained stable as a whole, while the management expense rate benefited significantly from the scale effect.
Earnings Forecast and Rating: The company is a leading domestic industrial robot and intelligent equipment company. It is a benchmarking company in the industrial 4.0 field and will fully benefit from the rapid development of the industry. We expect the company's EPS to be 0.31 yuan from 2017 to 2019 respectively. 0.37 yuan, 0.44 yuan, giving "overweight" rating.
Risk warning: The competition in the robotics market has intensified; the development of the smart logistics market is not up to expectations.
Manual Motor Starter,Motor Starter,KNS12,China Motor Starter
Wenzhou Korlen Electric Appliances Co., Ltd. , https://www.zjaccontactor.com