The company reported that the operating income in the first three quarters was 86.84 million yuan, an increase of 169.65% over the same period last year, the net profit of the mother was-31.21 million yuan, and the loss increased by-44.64%. Among them, the operating income of the third quarter was 44.12 million yuan, an increase of 190.05% over the same period last year, and the net profit of the mother was-7.63 million yuan, down 5682.41% from the same period last year.
The core point.
The revenue growth is mainly due to the rapid growth of the technical consulting and planning services business and the merger of subsidiaries: according to the company's report, the technical consulting and planning services business is growing rapidly. at the same time, Central Century (100% equity), clear Control Human settlement (17.9% equity) and Alipay (18.93% equity) have brought the growth of income. The resulting substantial increase in operating costs, administrative expenses and sales expenses led to a year-on-year increase in losses in the first three quarters.
Sponge city PPP project continues to land, additional issuance to alleviate financial pressure: the company has won the bid Qian'an sponge city construction PPP project (total investment 1.12 billion yuan) and Suining sponge city construction PPP project (total investment 1 billion yuan), continue to expand its advantages in the field of sponge city construction At the same time, the company's non-public stock offering plan (the total amount of funds to be raised is not more than 4.856 billion yuan) is in continuous progress. after the completion of the offering, Huarongtai, the controlling shareholder, will hold more than 30% of its shares. At the same time, raising funds will effectively alleviate the financial pressure on the company at the operational level.
Financial forecasts and investment advice.
We maintain that the company's net profit from 2016 to 2018 is 0.36,2.85 and 472 million yuan respectively, regardless of the EPS of 0.04,0.28,0.47 yuan respectively. If we consider this additional offering, the EPS will be diluted, but the potential profit growth of the company's fund-raising projects in the future is large, and the performance is expected to improve significantly. The comparable company is currently valued at 34 times in 17 years. Considering the scarcity and growth potential of the company in the field of sponge urban planning and construction, the company is given a 20% premium, that is, 40 times PE in 2017, maintaining the target price of 11.2 yuan and maintaining the "overweight" rating.
Risk hint.
There is uncertainty in the bidding of PPP project, the number and speed of landing orders will significantly affect the performance in 2017-2018, and the funds raised by non-public offerings may be uncertain.
Affected by the macroeconomic situation, the government's ability to pay and other factors, the construction progress and payment of the sponge city project may be lower than expected.