Events:
According to the 2016 China report, the company's operating income in the first half of the year was 233 million yuan, an increase of 13.59 percent over the same period last year, while its net profit was 6.57 million yuan, down 4.82 percent from the same period last year.
Comments:
Complete termination of retail business and steady growth of net profit after deducting non-profit
The company announced the termination of its retail business in June and generated 1.82 million yuan in non-operating expenses such as merchant compensation in the first half of the year, resulting in a slight decline in net profit in the first half compared with last year. After deducting non-recurring profits and losses, the net profit returned to the mother was 7.88 million yuan, an increase of 15.64% over the same period last year. Due to the addition of Jingneng and Luojiang natural gas subsidiaries during the reporting period, operating revenue increased by 13.59%. Due to the decrease in deposits and the increase in interest expenses after new loans, financial expenses increased by about 3.8 million yuan, or 160.46%, over the same period last year.
Acquisition of Jingneng and Luojiang natural gas companies, comprehensive transformation of natural gas integrated service providers
In the first half of 16 years, the company completed the acquisition of two gas distribution companies, Jingneng and Luojiang, Deyang City, Sichuan Province, with 15-year net profits of 35.35 million yuan and 7.32 million yuan respectively. In addition to the gas distribution business, the company is also actively expanding the upstream and downstream industries of natural gas. In the past 15 years, Yamei Energy IPO, which invested in Hong Kong stocks, has explored the upstream exploration and development of natural gas, built a distributed energy project in Shanghai Jiading IDC Center to open up the downstream market of natural gas, and the company has been fully transformed into an integrated natural gas service provider.
Natural gas distribution is an important expansion area of the company.
The company is currently building the first distributed energy project to power and cool Sinnet's IDC center in Jiading, Shanghai, which is expected to be put into operation at the beginning of 17 years. The stable load and high matching degree of cooling and electricity in the IDC center make it one of the most suitable users to use distributed energy. With the continuous development of the distributed field, the company will also develop different modes of distributed projects in the future.
Profit forecast
It is estimated that the company's net profit in 2016-18 is 39 million, 87 million, 127 million, corresponding to PE is 111-50-34 times. The company has a small market capitalization and a high proportion of large shareholders, and employee shareholding is bound to the interests of management and is given a "highly recommended" rating.
Risk hint
With the macroeconomic downturn, the risk of gas distribution decline; the project construction and production schedule is not as expected; the development of distributed gas is not as expected.