Brief comment on performance
In 2016, the company realized operating income, operating profit and net profit belonging to shareholders of listed companies of 1.554 billion yuan, 108 million yuan and 123 million yuan respectively, an increase of 74.28%, 140.56% and 173.83% respectively over the same period last year. EPS0.36 yuan per share was fully diluted, which is in line with our expectations. The net cash flow of operating activities was 229 million yuan, higher than the net profit of the same period. On a quarterly basis, the year-on-year growth rate of Q1/Q2/Q3/Q4 revenue and net profit of the company are 138.93%, 304.89%, 168.27%, 15.49% and-1823.15%, 584.09%, 35.47% and 191.33% respectively. In 2016, the company does not allocate or transfer. In the first quarter of 2017, the company's main revenue was 192 million yuan, down 2.66% from the same period last year, and the net profit attributed to shareholders of listed companies was 17.5045 million yuan, down 2.90% from the same period last year.
Business analysis
The income has greatly increased and the profitability has been enhanced. In 2016, the company's revenue increased significantly (+ 74.28%), and the gross profit margin fell slightly to 22.04% (- 1.89pct.). During this period, the expense rate is reduced by 2.01pct. The rate of sales expenses and the rate of management expenses are increased by 1.78pct. And 3.70pct. the increase in the two expenses is mainly due to the increase in the financial expense rate due to the incorporation of Mori Yuan Furniture's annual data. 2.82pct. Thanks to the substantial growth in revenue and profits of Senyuan Furniture, the company's return net profit margin increased by 2.88pct. the overall profitability has been improved.
The volume and price of wood business fell, and the rise in plate prices led to the growth of business income. In 2016, affected by the recession in the overall timber industry, the company's timber sales volume was 69200 cubic meters, down 12.41% from the same period last year, achieving sales revenue of 52.3363 million yuan, superimposed by price decline factors, and revenue fell 19.29% compared with the same period last year. Although the company's plate sales fell by 8.85 pct, due to the rise in domestic plate prices in the third and fourth quarters of 16 years, the company's average plate price increased by 25.82% compared with 15 years, prompting the plate business revenue to increase by 15.07%.
The performance of Senyuan Furniture is over-commitment, which thickens the overall performance of the company. In 2016, the company's furniture revenue increased by 133.44%, and the sales revenue reached 1.109 billion yuan, of which hotel furniture income was 950 million yuan, hardcover furniture income was 160 million yuan, and the overall net profit was 272 million yuan, exceeding the previous performance commitment of 245 million yuan. The company's overall revenue and performance increased by 74.28% and 173.83%. Senyuan Furniture is a well-known domestic hotel furniture manufacturer, and the replacement trend of middle and high-end hotel furniture is coming gradually in the next few years. We are optimistic that Sen Yuan Furniture will continue to benefit from furniture sales in this replacement tide. On the other hand, with the help of the original marketing team of Senyuan Furniture, the company has launched the high-end whole-house customized brand "Mengma MOMA". With the sustained economic growth and the determination of an increase in middle-and high-income people, the company's high-end customized business has the driving force for growth.
Risk factors.
Macroeconomic fluctuation risk; raw material price fluctuation risk; exchange rate risk.
Profit forecast and investment suggestion
The company, formerly a forest board integration enterprise, has been transformed into the field of hotel and high-end private home custom furniture. After the completion of the Dongguan base, furniture production capacity is about to be released, and the performance has shown a momentum of rapid growth. We predict that the company's EPS for 2017-2019 will be 0.42 EPS 0.57 shock 0.75 yuan per share, (three-year CAGR 27.8%), corresponding to PE in 29-21-16, maintaining the "overweight" rating.