Core ideas:

Equity acquisition contributes to performance growth

In 16 years, the company achieved operating income of 6.129 billion yuan, a decrease of 17.2% over the same period last year, and net profit of 322 million yuan, an increase of 51.3% over the same period last year, and earnings per share of 0.22 yuan. At present, the main business income and settlement gross profit margin have declined, while the decrease in the scale of taxes and fees, the reduction in the provision for asset impairment and the decline in the proportion of minority shareholders' equity are the reasons for the increase in net profit. In the past 16 years, the company has signed a contract sales of 4.385 billion yuan, an increase of 9.4% over the same period last year. Lanxun in Nanjing and Northwest Wang in Beijing are the main stock resources, with a total value of 28.7 billion yuan.

Focus on the business transformation of new energy + equity investment

Since 14 years, the company has actively explored new business development directions on the basis of the original business, and the existing project expansion is mainly focused on new energy and financial equity projects. Fujian Crown Castle International Corp Ruimin, a holding subsidiary of the company for 16 years, achieved sales of 864kWh. PACK automatic production line, cell pilot R & D line and cell production line are being stepped up and are expected to be fully put into production within 2017. In terms of electrolyte business, with the newly purchased production equipment fully put into use, the production scale of the products will be further expanded.

The level of leverage decreases, the scale of financing shrinks and the cost falls.

The leverage level of the company decreased further in the past 16 years. By the end of the reporting period, the scale of interest-bearing liabilities was 4.57 billion yuan, the cash in hand was 4.035 billion yuan, the net debt ratio was only 6.9%, and the average financing cost of the company also decreased, and the comprehensive cost was only 5.1%. The financing structure has been greatly optimized.

It is estimated that the EPS in 17-18 will be 0.24,0.27 yuan respectively, maintaining the "buy" rating.

The increase in the scale of corporate profits in the past 16 years is mainly due to the decline in the proportion of minority shareholders. In terms of business development, the company has sold some non-core transformation projects, consolidating the transformation direction with new energy business as the core. 17 years of attention to the company's lithium battery orders and electrolyte business development.

Risk hint

The sales of real estate business are affected by the market, and there is some uncertainty about the progress of new business projects.