This report is read as follows:
The performance in 2016 was in line with market expectations, with a large increase in net profit. The construction of the "warehousing and Logistics Base" project has been accelerated, and the cocoon and silk industry chain has been further improved. Internet + supply chain finance is expected to become a new growth point. Increase the rating.
Main points of investment:
The performance is in line with market expectations and the overweight rating is maintained. In 16 years, the revenue was 2.25 billion yuan (+ 11.92%) and the net profit was 100 million yuan (+ 70.45%). The gross profit margin increased by 0.7% over 2015, and the net profit rate decreased by 1.5%, with a dividend of 1.5 yuan per 10 shares. 16Q4's home net profit increased by 8350% compared with the same period last year. The performance is in line with market expectations, slightly lower than we had expected. Still optimistic about the improvement of the gross profit margin of silk exports and the performance growth brought by the supply chain finance business, but due to the lower-than-expected progress of the increase, the company has lowered its EPS to 0.23 yuan (- 0.05yuan) in 2018, and is expected to have an EPS of 0.29pm in 2017-19, maintaining the target price of 11.58yuan and increasing its holding rating.
The construction of the "warehousing and Logistics Base" project has been accelerated, and the cocoon and silk industry chain has been further improved. Through the new large-scale warehousing and logistics base, the company extends the cocoon and silk supply chain management business to the upstream raw material base, strengthens the company's control of cocoon and silk raw materials, and promotes the company's industry status. In order to promote the market development of cocoon and silk raw materials and front-end industrial chain, enhance the automation and intelligence level of intermediate manufacturing, and realize the upgrading of online and offline stores of terminal clothing brands, the company is expected to build a leading company of cocoon and silk industry chain.
Internet + supply chain finance is expected to open up a new growth point for the company. The company has a leading Internet thinking, its Golden Silkworm Network is the most influential Internet information platform in the cocoon and silk industry, with both bulk transactions and industry portal functions. During the reporting period, the company passed the qualification examination and approval of ICBC's "core enterprise of cocoon and silk supply chain financing" and cooperated with the bank to develop a tripartite closed-loop cocoon and silk supply chain financing business model, which laid the foundation for the company to extend the development of cocoon and silk supply chain management services. Internet + 's new model of supply chain finance is expected to become the next growth point.
Risk hint: supply chain financial business risk control is difficult; the progress of the new project is not as expected.