Summary of the report:
Operating income fell 2.92% year-on-year, while operating cash flow increased by 72.72% year-on-year. In 2016, the operating income was 1.071 billion yuan, down 2.92% from the same period last year, and the net profit was 92.438 million yuan, down 34.27% from the same period last year. The net inflow of operating cash flow was 143 million yuan, an increase of 72.72% over the same period last year. The comprehensive gross profit margin was 26.21%, down 1.63 percentage points from the same period last year. In terms of period expenses, the sales expenses were 67.8263 million yuan, up 12.65% from the same period last year; the administrative expenses were 92.442 million yuan, down 17.88% from the same period last year; and the financial expenses were 3.5161 million yuan, down 21.25% from the same period last year.
The main business covers retail and tourism services, ploughing Hangzhou area. During the reporting period, the company continued to engage in department store retailing. At present, it owns a store in Hangzhou Department Store, which is the main source of income and profit for the company. In addition, the company also manages Hangzhou Hotel and Hangzhou Collectibles Market independently. In terms of main business revenue, the commodity retail / tourism services are 10.03 million yuan respectively, and the gross profit margin is 22.19% and 85.42% respectively.
The main business is steady and steady, and continue to improve service management. In the retail industry, the company has always maintained good communication with Zhejiang Yintai Department Store Co., Ltd., to ensure that Hangzhou Department Store realizes experience upgrading and function optimization by constantly adjusting its business model and layout. In terms of tourism services, Hangzhou Hotel revolves around the principle of people-oriented and customer-oriented management, pursues the specialization and personalization of service management, and advocates a harmonious atmosphere of guest relations.
Explore the big health industry and actively strive for transformation. During the reporting period, the company actively looked for projects with large health, large-scale consumer industries, high profits and long business cycle, and used part of the retained undistributed profits for industrial investment. By the end of the reporting period, the preparatory work of the international health and medical management center with 20% shareholding of the company has been carried out in an orderly manner, all shareholder contributions have been put in place, and the preparatory work has been basically completed. On March 23, 2016, the company invested HK $10,000 to set up a wholly-owned subsidiary "Baida Health Investment Co., Ltd." in the Hong Kong Special Administrative region. As of the date of disclosure of the report, it had not actually invested and operated.
Profit forecast and valuation: from 2017 to 2019, the EPS is expected to be 0.26,0.28,0.31 yuan per share respectively, and the corresponding PE is 47.97x, 45.11x and 41.14x respectively.
Risk hint: the risk of slowing down the growth of consumption; the risk of industrial transformation; the risk of industry competition