Main points of investment
Event: the company released its 2016 annual report. During the reporting period, the company achieved revenue of 1.352 billion yuan, an increase of 61.01% over the same period last year. The net profit belonging to the shareholders of the parent company was 84.95 million yuan, up 13.19% from the same period last year. The net profit after deduction was-21.4158 million yuan, and the impairment loss of assets for the whole year was 92 million yuan.
Hengtai Aipu: strategic positioning integrated energy service provider. The company has developed from an oil and gas exploration and development software technology company in 2011 to a high-tech, collectivized integrated energy service provider. The company's performance in 2016 is dominated by investment benefits, and the main business trend is upward in 2017.
Hengtai Aipu: the design of New Jinhua and Sichuan Oil in 2016 meets the performance commitment. Xinjinhua and Sichuan Oil Design achieved net profits of 87.5 million yuan and 28.46 million yuan for the whole year of 2016, meeting the performance commitment standard.
The company acquired New Jinhua and Sichuan Oil Design in 2016. Among them, the promised net profit of Xinjinhua in 2015-2017 is not less than 70.8 million yuan, 80 million yuan and 88.5 million yuan respectively. Sichuan Oil Design promises to achieve net profit of not less than 23.65 million yuan, 28.4 million yuan, 32.65 million yuan and 37.55 million yuan respectively from 2015 to 2018.
Hengtai Aipu: the layout of the five major business sectors is basically in place, and the company's five major business sectors include GambiG, engineering technology, core precision instrument and high-end equipment manufacturing, cloud computing and big data, and new business development.
(1) GambiG business segment: the company is the leader in oil and gas exploration and development software technical services in China. (2) Engineering and technology business plate: West Oil United Company made a breakthrough in geothermal development. (3) the core precision instrument and high-end equipment manufacturing business plate: Xinjinhua has great potential for development. (4) Cloud computing, big data business plate: development industry and non-industry VR/AR technology. (5) New business development section: the development of environmental protection engineering and financial business.
China Petroleum & Chemical Corp Hebei Province hand in hand: Xiongan New area will vigorously promote Geothermal Energy after the establishment of Hebei Xiongan New area, China Petroleum & Chemical Corp Group, China's largest geothermal energy development enterprise, said on April 7 that as early as 2009, the company began to develop and utilize geothermal clean and renewable energy in Xiongxian County, which has formed a "Xiongxian model" and is ready to vigorously promote it in the future. China Petroleum & Chemical Corp plans to build 20 more smoke-free cities during the 13th five-year Plan period.
Hengtai Epp: expanding the "non-oil" business sector, geothermal resources development is expected to become a new growth point. Xiyou, a wholly-owned subsidiary, jointly opened up the general contract service business of new resource drilling and completion projects in 2014, and signed an EPC service contract for the geothermal drilling and completion technical service project of Posco, South Korea, with a contract value of 31.9 million US dollars.
On December 31, 2016, the Korean geothermal energy development project was successfully completed, which marked the joint entry of Xiyou into high-end dry and hot rock engineering operations in the geothermal industry, especially in the geothermal industry, and the EPC general contract business of traditional geothermal development projects, creating a historic leap in the "non-oil" strategy of Hengtai Epp Group.
Hengtai Aipu: subsidiaries Zhongying Anxin and Chengdu European and American Ke have been listed on the new third board; equity transfer gains from investment in 2016, the company's wholly-owned subsidiary Boda Ruiheng transferred 17 million shares of Zhongying Anxin at a price of 255 million yuan. The cost of holding Zhongying Anxin is about 7.30 yuan per share.
Taking into account the performance commitment of Xin Jinhua and Sichuan Oil Design, as well as the transfer of shares in Zhongying Anxin, the performance from 2017 to 2019 is expected to be 2.48,2.85 and 324 million yuan, with an EPS of 0.35 and 0.40 PE, which is times higher than that of 27-24-21. Through the acquisition and layout of the oil service industry chain during the trough of the industry, subsidiaries Zhongying Anxin and Chengdu Omec have been listed on the new third board, benefiting from the rebound in oil prices and geothermal theme investment in the future.
Risk tips: crude oil prices have fallen sharply, domestic geothermal development is lower than expected, and post-acquisition integration is lower than expected.
