Event description
The company released its three quarterly results for 2016.
Event comment
Revenue and net profit increased steadily. In the first three quarters of 2016, the company achieved operating income of 1.497 billion yuan, an increase of 17.11 percent over the same period last year. Net profit belonging to shareholders of listed companies was 146 million yuan, an increase of 10.03 percent over the same period last year, and basic earnings per share was 0.08 yuan per share. The rapid growth of the company's pile foundation business and survey business promotes the company's operating income and net profit as a whole to maintain rapid growth. The company forecasts a 10% year-on-year increase in net profit for 2016, with a corresponding net profit of 2.5-295 million yuan.
Profitability declined slightly and expenses increased slightly during the period. The company's gross profit margin in the first three quarters of 2016 was 23.87%, down 4.2 pct from the same period last year; net profit was 9.65%, down 0.54pct from the same period last year. During the period, the expense rate was 12.92%, an increase of 1.12pct over the same period last year. The main reason for the increase in the expense rate during the period was the increase in management expenses, which increased by 1.07pct to 9.81% compared with the same period last year. The net operating cash flow was-212 million yuan, a decrease of 132 million yuan compared with-80 million yuan in the same period last year, mainly due to the expansion of operation scale and the increase of prepaid purchase payment.
The company's operating income of Q4 last year, Q1, Q2 and Q3 reached 6.52,4.31,4.93 and 573 million yuan respectively, up 23.25%, 19.39%, 4.01% and 29.05% respectively over the same period last year. The net profit attributable to shareholders of listed companies was 0.94,0.35,0.44 and 67 million yuan, up 74.07%, 9.38%, 2.33% and 15.52% respectively over the same period last year. Due to the seasonality of settlement, the company's fourth-quarter revenue and profits contribute more to the annual performance.
Continuously acquire high-quality targets, consolidate the main business, and expand the underground engineering business. The company announced on June 1 that it intends to issue 52.5 million shares at a price of 8.2 yuan per share, and the funds raised will be used to acquire 100% equity in Lixing project (300 million yuan), 100% equity in theme latitude (110 million yuan), and 49% equity in Zhejiang Zhongqing (70 million yuan). Lixing Engineering is mainly engaged in the design and manufacture of construction machinery and equipment, power and electrical automation equipment, which can assist the company's main business. The above acquisition is under way. In 2015, the company acquired 100% equity in Beijing Field Road, and obtained qualifications such as first-class general contracting for municipal public works, first-class professional contracting for airport road projects, second-level professional contracting for tunnel projects, and general contracting for housing construction projects. In November 2015, the company acquired the remaining 59.33% equity interest in Beijing Zhongyan, so as to enhance the company's comprehensive strength in project management and monitoring. In 2015, the company established Sinochem Geotechnical Design and Research Co., Ltd., to enhance its R & D and innovation capability; Jiazhiding Real Estate Co., Ltd. to enhance the company's regional market service capacity; through a series of acquisitions, the company expands from foundation business to comprehensive underground engineering development services.
Continue to go deep into the field of general aviation business and cultivate new profit growth points. The company announced on July 6 that it won the bid for the construction project of the second phase of the expansion of the airfield road and ancillary project (FXQ-CD-003) of Haikou Meilan International Airport, with a winning bid amount of 481 million yuan, accounting for 24.90% of the company's annual operating income in 2015, or having a positive impact on the company's performance. In May 2016, the company invested 500 million yuan to set up Quantai Navigation Co., Ltd., to enter the whole field of navigation business. The company's first navigation project, Anji General Aviation Airport, has been completed, and plans to apply for a civil airport license in 2016 to carry out navigation operation. In June 2015, the company signed the "Investment Framework Agreement on Yangzhou Gaoyou Huxi Navigation Industrial Base" with the people's Government of Gaoyou City, with an investment of about 320 million yuan. In January 2016, signed the "Huangshan General Aviation Industry Project Framework Agreement" with the Huangshan District people's Government, with an investment of about 390 million yuan. In February 2016, the Framework Agreement on Investment Project of Rudong Navigation Industrial Base was signed with the people's Government of Rudong County, with a provisional investment of 400 million yuan. During the 13th five-year Plan period, China is expected to build more than 500 navigable airports, the market is huge, the company may benefit greatly. The theme latitude that the company plans to acquire is mainly engaged in the planning and design of general aviation towns and theme industrial parks. The company acquired 51% stake in Zhejiang Zhongqing, Zhejiang Zhongqing Aviation Club focused on general aviation airport investment, construction and services. After the completion of this series of investments and acquisitions, the company has a more perfect layout in the navigation field, creating the whole industry chain service from navigable airports, general aviation towns, theme industrial parks to navigation investment and operation, and the company's business capacity in the field of navigation services has been greatly upgraded. navigation business is expected to become a new profit growth point in the future.
Lay out emerging industries and cultivate multi-dimensional development space. In 2014, the subsidiary invested to set up Kyushu DreamWorks International Culture Communication Co., Ltd., participating in filming TV dramas such as "two Flowers" and "Mu Yun Ji at Sea". The investment project IP has outstanding features and great potential for investment and operation. The company's wholly-owned subsidiary Sinochem Geotechnical Investment Management Co., Ltd. and ChelsioCommunicationsInc. (American Speed Technology Company) signed an agreement in the United States on April 27, 2015, Sinochem Geotechnical Investment contributed US $13 million in cash to subscribe for 12198841 preferred shares issued by Chelsio, accounting for 11.08% of the total shares after the issue, laying out the chip production and marketing business. The company currently holds a 51% stake in Speed Technology. The company participates in Renren Bank to intervene in the field of Internet finance and tries to invest in the equity of Internet financial enterprises.
Investment advice: forecast company 2016-2018 EPS0.16/0.21/0.28 yuan, corresponding to 2016-2018 PE is 51-40-29 times, given a "buy" rating.
Risk hints: macroeconomic fluctuation risk, M & A not up to expectations, business extension risk.