Summary of the report:
Operating income increased by 30.70% over the same period last year, and gross profit margin increased by 0.21 percentage points. In 2016, the operating income reached 1.15 billion yuan, an increase of 30.70% over the same period last year, and the net profit returned to the home was 16.1933 million yuan, down 30.82% from the same period last year. There was a net operating cash outflow of 1.6358 million yuan, which was better than that of 7629.06 in the previous period. The comprehensive gross profit margin was 13.29%, an increase of 0.21 percentage points over the same period last year. In terms of period expenses, the sales expenses were 47.9614 million yuan, down 11.25% from the same period last year, the management expenses were 74.5157 million yuan, up 98.25% from the same period last year, and the financial expenses were 9.7521 million yuan. The overall increase in expenses during the period was 43.14%.
The main business has shifted from home appliance retail to mobile communications, ploughing the Shandong area. During the reporting period, the company's main business income came from home appliance retail business and mobile communications business. At the end of the reporting period, the company had a total of six chain stores, all located in Shandong Province (which ceased operation on January 10, 2017); at the same time, it acquired Zhejiang Dejing Electronics and officially entered the mobile communication equipment manufacturing industry. In terms of main business revenue, home appliances / mobile communications are 7460.343 million yuan respectively, and the gross profit margin is 7.94% and 11.61% respectively. From a regional point of view, Shandong (home appliances only) / domestic / foreign revenue is RMB 2900.53 million respectively, and the gross profit margin is 7.94% 12.32% 7.70% respectively.
Judge the hour and size up the situation and abandon the traditional business to solve the problem of competition in the same industry. "online + offline" mode has become the new normal of home appliance retail industry. The company's original home appliance business, the market scope is relatively narrow, the business scale is low, the establishment of an independent online sales platform is impractical, online and offline under the pressure of dual competition is difficult to break through. In addition, there is also the problem of competition with Gome for many years. Therefore, the company decided to terminate the original home appliance retail business and transfer the relevant assets in early 2017. Cut in with "security intelligence", the gorgeous transformation to mobile communication. During the reporting period, the company wholly acquired Dejing Electronics and set up two commercial companies, Shanghai Aiyouwei and Beijing Lianmeizhike, to form a complete industrial chain of R & D, production and sales. At the same time, in response to the increasingly strong security demands of users, the company has decided to build Gome-branded mobile phones with "security intelligence" as the core, and gradually form the development layout of "secure mobile phones-smart hardware-smart life-intelligent ecology".
Profit forecast and valuation: from 2017 to 2019, the EPS is expected to be 0.26,0.42,0.62 yuan per share respectively, and the corresponding PE is 71.89x, 44.39x and 29.93x respectively.
Risk hint: policy fluctuation risk; management adjustment risk; industry competition risk