In the first three quarters of 2016, the company turned from losses to profits compared with the same period last year, realizing a net profit of 2.105 million yuan (a loss of 9.6721 million yuan in the same period last year), of which the net profit in the third quarter was 5.8129 million yuan. The improvement of the company's performance is mainly due to the reduction of the product price line in the ceramic tile engineering market, which extends to the middle market with larger capacity, resulting in an increase in ceramic tile revenue in the main business compared with the same period last year. At the same time, the company's annual net profit is expected to be between 1000 and 25 million yuan, a year-on-year change of-30% and 70%.
The company insists on the continuous operation of the main business of ceramic tiles and actively expands its business in the field of health. In the process of transformation, the company adheres to the main ceramic tile business, which serves as the basis for the company's stable operation and the source of stable cash flow; at the same time, the company actively carries out mergers and acquisitions and cooperation in the field of large health. jointly promote the layout of the large health industry with various strategic partners. At present, the company has signed a "Strategic Cooperation Framework Agreement" with Tianji Biotechnology Company to jointly develop the domestic high-end oral health care market; to promote the construction of Shanghai Yuexin International Medical Center in an orderly manner, which is expected to start trial operation by the end of 2016; and to set up a partnership with Jiage and Benyu Investment, which intends to raise no more than 10 billion yuan to promote the transformation of the large health industry. Yuexin Health subscribed 300 million yuan out of the 1 billion yuan in the first phase. At the same time, the company has methodically carried out pre-investment preparations in the United States, Shanghai, Xuzhou and Guangzhou.
Profit forecast and investment suggestions: the company's main ceramic tile business grew steadily during the reporting period, which has become a strong backing for the transformation of the company's large health industry. With the gradual promotion of the company's layout in the large health industry, it is expected to achieve dual-main business operation in the future. It is estimated that from 2016 to 2018, the EPS of the company will be 0.02 yuan respectively, maintaining the "overweight" rating.
Risk hint: the big health business is not as good as expected.