Events:
The company released its annual report that its annual operating income was 925 million yuan, an increase of 76.87 percent over the same period last year, while the net profit attributed to the owner of the parent company was 47.1212 million yuan, an increase of 14.30 percent over the same period last year.
Comments:
The company's profits mainly come from two aspects: 1) real estate housing development business. The company has developed and built four residential areas in Chongming New Town, Shanghai, with a sales area of 268000 square meters, and by the end of December 2016, commercial houses in three of these projects had been sold out. The company's real estate sales revenue in 2016 was 344 million, an increase of 236% over the same period last year. 2) A profit of 10.12 million yuan was obtained from the sale of assets in the Niuleng Port area.
Adjust the industrial structure and actively explore the transformation
The company's current main business is real estate development, but also involves communications engineering, trade, car rental and other a total of 11 sectors of business. In 2016, the company comprehensively cleaned up and integrated its subordinate enterprises and foreign shareholding enterprises, successively closed its subsidiaries engaged in advertising and financial consulting, and at the same time expanded the business of dental prevention office, air ticket agency and Shanghai tourism.
The company actively explored the road of transformation and development. The company set up Shanghai Yatong Tongjiang Equity Investment Fund Management Co., Ltd. in a joint venture with Shanghai Tongjiang Investment Co., Ltd., and successfully initiated the establishment of Ningbo Meishan Free Trade Port Tongyi Investment Management Partnership. Longjing Technology, Flavor Mushroom Square and many other target enterprises have been investigated and investigated. in the next step, the company will speed up the landing of fund-raising projects.
Relying on the State-owned assets Supervision and Administration Commission of Chongming Island, there is much room for imagination in the reform.
The company is the only state-controlled listed company in Chongming District, with a state-owned shareholding ratio of 32.5%. In terms of state-owned enterprise reform, 10 of the 13 enterprises under Chongming SASAC are involved in land and real estate-related business, forming a collaborative relationship with the company's business. At the same time, the development and construction plan of Chongming Island has been made clear, Yatong shares will have more cooperation opportunities to undertake construction projects, and there are broad prospects for development.
Be optimistic about the development potential of the company and give it a "buy" rating
The company is the only state-controlled listed company in Chongming, with extensive business coverage and rich land reserves. It is estimated that the company's EPS from 2017 to 2019 will be 0.16,0.19,0.23 yuan respectively, with a target price of 22 yuan, maintaining a "buy" rating.
Risk hint: the real estate boom is declining and the progress of state-owned enterprise reform is not as expected.