The company issued a revised announcement of KuaiBao's 2016 results, showing a 28.69% year-on-year drop in net profit compared with the same period last year. On the evening of March 15, the company announced its 2016 results KuaiBao revised announcement: the company's annual net profit was adjusted to 43.71 million yuan from 65.38 million yuan disclosed in the February 28 announcement. The adjusted net profit decreased from 6.65% to 28.69%.

The Real Estate Regulation and Control Policy in the fourth quarter affects the performance of good Housing in Suzhou

Under the influence of the real estate regulation and control policy in the fourth quarter of 2016, the performance of Suzhou good House Information Technology Co., Ltd., which the company invested, failed to reach the promised level in 2016. The company's understanding of Suzhou good House's 2016 performance compensation income recognition policy is biased, and based on the principle of prudence, after communicating with the annual report auditor, the company adjusted the above deviation, resulting in the company's 2016 annual performance from increase to decline.

The growth rate of gold jewelry sales leads the growth rate of optional consumer goods, and is optimistic about the annual performance according to the statistics bureau's social consumer data, the retail sales of gold jewelry in January-February 2017 performed better among optional consumer goods, and we are optimistic about the performance of the gold jewelry industry in 2017. the reasons are: 1) the government's regulation and control of real estate prices has been strengthened, the erosive effect of real estate on residents' consumption power has weakened, and residents' actual disposable funds are expected to increase. 2) due to inflation and other reasons, more residents hope to preserve the value of their assets by buying gold, and the sales of gold bars in the gold jewelry industry are expected to increase.

Adjust the profit forecast, maintain the target price of 12.5 yuan for 6 months and increase the holding rating based on the existing 528 million shares of equity, we adjust the forecast for the company's EPS from 2016 to 2018 to 0.08 / 0.12 / 0.16 yuan (previously 0.12 / 0.14 / 0.17 yuan), maintain the target price of 12.5 yuan for the next six months, and maintain the overweight rating.

Risk Tips:

The macroeconomic growth rate is lower than expected, and the growth rate of consumer demand is lower than expected.