Main viewpoints
1. Performance fluctuations. Non-recurring gains and losses have a great impact on the company's profits from 2013 to 2015.
The amount of non-recurrent profit and loss of the company from 2013 to 2015 is 80.66 million yuan, 89.86 million yuan and 36.38 million yuan respectively. The equity transfer of subsidiaries and government scientific research subsidies are the main sources of non-recurrent profits and losses over the years. The fluctuation of this part has a great impact on the overall profits of the company. The increase of net profit after deducting non-profit is relatively low. The company's overall gross profit margin was 37.6%, down about 4.25 percentage points from the same period last year.
two。 The equity incentive is terminated. Because the performance index of the company failed to meet the requirements of equity incentive assessment, the company terminated the equity incentive. However, we believe that ending the equity incentive does not mean ending the employee incentive. The company has achieved a breakthrough in winning the equity incentive under the existing system, and we also see that the company is constantly making new attempts on employee incentive. Therefore, we are not pessimistic about the termination of equity incentives caused by performance fluctuations.
3. The subsidiary company is developing rapidly. At present, the company has more than 100 holding subsidiaries, and the company is realizing the function of its own entrepreneurial platform. At the same time, following Darry Biology, a number of subsidiaries / Sun companies of the company have launched a three-board listing. These subsidiaries have a wide range of business, complement with the business of the parent company, and are forming an ecosystem, which will be the main development direction of the company in the future.
4. Profit forecast and investment rating. We are optimistic about the genetic testing industry cultivated by the company, as well as the medical services sector that is being actively laid out. At present, the company is changing from a technology platform company, to the layout of the whole industry chain of products and services, to the entrepreneurial platform of more than 100 holding subsidiaries today, the identity of Daan Gene has gradually changed to the role of a holding company, and she is building an ecosystem. The company's traditional gene diagnosis business still maintains a leading position in the industry, and the management has been actively exploring new possibilities in terms of system and mechanism, and achieved a breakthrough. Although the equity incentive is forced to be terminated due to the fluctuation of performance, the enthusiasm of the core staff of the company is still mobilized through the construction of the entrepreneurial platform.
In terms of earnings forecast, we adjust our forecast for the company's performance from 2016 to 2017. It is estimated that the EPS of the company from 2016 to 2017 will be 0.20 yuan and 0.26 yuan respectively, and the dynamic PE corresponding to the current stock price is 145x and 114x respectively. There may be some uncertain factors in the current process of changing the role and positioning of the company, and these factors may affect the expected rate of return of the company's stock price for a period of time in the future. We temporarily adjust the company's investment rating to "recommended". We are still full of confidence in the future development of the company, and will continue to closely follow the development of the company.