Core ideas:
The company publishes its annual report
The company publishes its annual report. In 2016, the operating income was 4.88 billion yuan, an increase of 28% over the same period last year. The net profit attributed to the shareholders of the parent company was 259 million yuan, an increase of 91% over the same period last year, and basic earnings per share was 0.38 yuan.
The company expects the net profit of shareholders belonging to the parent company in the first quarter of 2017 to be 4400-60 million yuan, an increase of 33% Mur82% over the same period last year, due to the increase in the market price of viscose staple fiber over the same period last year, the company further reduced the cost and expenditure, and enhanced the profitability of viscose staple fiber. The company's medical service business income growth, profit level is relatively stable.
Business analysis: the sales volume of viscose staple fiber increased, and the medical business grew steadily during the reporting period. In terms of chemical fiber business, the market price of viscose staple fiber rose steadily, rising from 13000 yuan / ton at the beginning of the year to 16500 yuan / ton at the end of the year. The company realized chemical fiber sales of 258000 tons, an increase of 25% over the same period last year, and the annual gross profit margin was stable compared with the same period last year. In terms of health care business, the income of pharmaceutical logistics was 960 million yuan, an increase of 8.9% over the same period last year; the income of medical services was 700 million yuan, an increase of 2.5% over the same period last year; and the income of health management was 5.24 million yuan. Expenses during the company period decreased due to a reduction in expenses such as shutdown losses and interest expenses.
Keep an eye on viscose staple fiber vibrating uplink throughout the year
The core reason for the upward price of viscose staple fiber is that the supply and demand pattern continues to improve and enter the business cycle.
In 2017, the industry put in less new production capacity, supply and demand continued to improve, high start-up, low inventory, tight supply has become the norm, optimistic about viscose staple fiber shock upward throughout the year.
Profit forecast and investment suggestion
Based on the assumption of optimistic judgment of viscose short-view demeanor, we expect the company's earnings per share from 2017 to 2019 to be 0.58,0.60,0.64 yuan respectively, and give a "buy" rating to the previous share price PE of 18 times, 18 times and 17 times respectively.
Risk hint
1, the downstream weaving demand is insufficient; 2, the cotton price falls; 3, the new production capacity is put into production quickly.