Main points of investment
Event: the company's revenue in the first half of 2016 was 397 million yuan, down 21.38% from the same period last year. The net profit returned to the mother was 19.92 million yuan, down 35.54% from the same period last year. The non-net profit was 12.21 million yuan, down 54.65% per share.
Comments:
The traditional forestry industry is relatively sound, and the transformation direction of tourism medical strategy is expanding rapidly. During the reporting period, the revenue of the company's forestry / forest products processing / pawn / concrete / trade circulation business decreased by 43.35% 6.13% and 22% respectively. In addition, the increase in tourism medical program expansion costs led to a sharp decline in the company's net profit. The company accelerates the layout and landing of related projects, medical aspects: the Aiwei outpatient department of Stomatology Hospital was established in January 2016, the business condition is good, the ear, nose and throat clinic is under preparation and is about to open, the rehabilitation hospital and beauty hospital will choose the opportunity to start, and the Fuzhou Sanjiangkou Hospital project and Fujian Yanfu Memorial Hospital project are being carried out according to plan. In the aspect of tourism: the fund-raising project Pingtan Haitian Fudi Beautiful Village and Tourism and Leisure Resort Comprehensive Development Project is under way, and the government is currently carrying out demolition work. In addition, the strategic cooperation framework agreement signed between the company and Pingtan Social undertakings Bureau is a framework agreement on the willingness of both sides to cooperate. It mainly involves investing in equestrian sports and related industrial projects such as Pingtan (International) Horse Culture Park, Asian (Pingtan) Equestrian Sports Center, Pingtan Horse Industry bonded Trading Center (cross-border e-commerce) and so on.
Profit forecast and investment rating: Pingtan has a triple policy of free trade zone, free port and maritime Silk Road, and a free trade zone (43 square kilometers in Pingtan area, whose strategic orientation is to focus on building a common home between the two sides of the strait and an international tourism island). Free port (which has many policy dividends in terms of taxation, trade preferences and personnel mobility, etc.) The Maritime Silk Road (Pingtan is expected to become the window of the new Maritime Silk Road), the State Council has agreed in principle that the "Pingtan International Tourism Island Construction Plan" is the landing of the strategic positioning of Pingtan Free Trade Zone. With reference to the experience of Hainan Island and the previous Pingtan is striving for the tax exemption policy for shopping on outlying islands, the outlying islands tax exemption is expected to be tried out in Pingtan. By virtue of the status of a listed company and the chairman of the board of directors with many years of political experience, he is expected to become a comprehensive developer of Pingtan Comprehensive Experimental Zone and participate in the construction of Pingtan International Tourism Island. In addition, the former Horse Racing Sports Competition Center is located in Pingtan to plan and develop equestrian sports. The company recently signed a Strategic Cooperation Framework Agreement with the Social undertakings Bureau of Pingtan Comprehensive Experimental area. The two sides will rely on the regional and policy advantages of Pingtan Comprehensive Experimental Zone, give full play to their own advantages, and deeply develop equestrian sports and related horse industries, and are expected to benefit from the development of horse industry and horse lottery in the future. It is estimated that the EPS will be 0.04 pounds and 0.11 yuan respectively in 16-18, maintaining the "holding increase" rating.
Risk hint: the overall development of Pingtan experimental area is not as expected, and the progress of the company's project is not as expected.