Two investment project has a slight positive effect

Company's main business steady growth, in line with expectations: sell piano company, a total of 129000 last year, up 11.6% from a year earlier oakley m frame, the Caesar fort series of high-grade piano sales rose 43%, three series mid-range piano increases by 15%, the grand piano up 8% from a year earlier. Overall, the piano business growth in line with expectations. In addition, focus on developing the north beijing-zhuhai, digital piano brand market growth is good, 1.03 and 09400, respectively, year-on-year growth of 37% and 82%. Sales cost control to net profit growth, unsustainable: is expected in 2012, the company's main business gross profit margin was 31.8%, down 0.7%, including piano gross margin was 31.9%, down 0.3%; Digital piano and accessories of the gross profit margin was 22.3%, down 32%, because the gross profit margin on a digital piano is expected to decline, the second is the gross profit margin is lower than the digital piano accessories, lower the overall gross margin. Net profit growth faster than income because of the company strictly control the cost of promotion and exhibition cause a decrease in sales rate, and improving financial cost. Considering the long-term development, we think the company continue to control costs is unlikely. Two investment project has a slight positive effect on earnings is expected: guangzhou pearl river piano group co., LTD. Will be in the piano music products customization business, develops the hotel club and other special channels, extending to piped music folk music, and other fields; And digital instrument industry base will produce digital 114000 aircraft. We think piano customization accept surface is relatively narrow. Digital instrument better prospects, but marginal growth forecast weaker, if according to the unit price RMB 2000 / table, net interest rate 10%, postpartum thickening net profit about 10% full. Profit adjustment and investment advice We slightly adjusted earnings forecast: 2013-2015 is expected revenue for 15.7, 18.3, and 2.11 billion yuan, an increase of 18.9%, 16.4% and 15.4%. EPS was 0.475, 0.580, and 0.705 yuan. Net profit rose 24%, 22% and 22%. Present price corresponds to 31.2 x 13 eps, considering the digital piano business growth potential, to maintain "neutral" rating.

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