Peeling off chemical assets, the transformation is firm. The company recently announced that it would transfer its 100% stake in Shandong Lianxinda supply chain Management Co., Ltd. to the company's former directors, non-related persons Wei Zhongchuan and Zhang Yuguo at a transfer price of 78.2 million. The main assets of the subsidiary include the related assets of the company's polyurethane insulation board business. Due to the impact of the current macroeconomic environment and the recession in the real estate industry, downstream demand is low, plate production this year is less than last year, and the utilization rate of the production line is not high. The company's divestiture of the asset will focus more on the Internet marketing industry, showing the firm determination of the company's transformation.
The performance in the year of 16 is excellent. The company recently issued an annual performance forecast, which is expected to achieve a net profit of RMB211-220 million for shareholders of listed companies in 2016, an increase of 585% and 614% over the same period last year. Considering that the company is still losing money in its original main chemical industry, the performance of the three Internet marketing companies acquired by the company, Shanghai Xinhe, Shanghai Ji Chuang and Shanghai Lindong, has fulfilled its performance commitments for this year and is expected to exceed its quota. We believe that since the company's 15-year transformation, the acquired company has completed its performance commitments for two consecutive years, which shows the company's strong control over the quality of the project and its ability to integrate after the acquisition.
Active expansion, extension can be expected. The company put forward the development direction of big data and IP content. We believe that these areas are of high concern in the capital market at present, and with the rich experience and strong operational ability in the advertising industry, the company's involvement in these areas is no longer conceptual hype, but closely around creating incremental value for advertisers to achieve profitability. We believe that with the deepening of the company's integration, the company is expected to expand into newer areas and realize its performance in the future.
Profit forecast: we expect the company to maintain a "recommended" rating for 16-18 EPS 0.37 yuan 0.59 and 0.68 yuan, corresponding to 65 times, 41 times and 36 times PE.