Event
Third quarter 2016 report. In the first three quarters, the company achieved operating income of 431 million yuan, down 16.35% from the same period last year. Net profit belonging to shareholders of listed companies was 69.3658 million yuan, up 137.94% from the same period last year, and earnings per share was 0.23 yuan, up 64.29% from the same period last year.
Comment
With the acquisition of Bohan Weiye, the performance has grown rapidly: the core business has developed steadily and revenue has declined compared with the same period last year, mainly because in November 2015, the company sold an 85% stake in Shenzhen Demarco Intelligent Machinery Co., Ltd., the company's performance is no longer included in the scope of the merger, and the revenue of the holding subsidiary Huafei supply chain has also been greatly reduced. The company's net profit in the third quarter was about 36.59 million yuan, an increase of 127.5% over the same period last year. Bo Han Weiye made a significant contribution to profits, with a net profit of about 32.6 million yuan in the first half of the year. The related business of software development and engineering projects was mainly concluded in the second half of the year, and will also make a positive contribution. In the first three quarters, financial expenses decreased by 10.64 million yuan compared with the same period last year, mainly due to a decrease in short-term borrowing, while investment income increased by about 10 million yuan due to the transfer of part of the equity holding in Pengding Chuangying.
In-depth development of the Internet of things industry, BohanWeiye plans to acquire 51% equity in Hongtu in cash: a wholly-owned subsidiary, BohanWeiye, provides integrated operation services of the Internet of things for customers in logistics, express delivery and other areas. Bo Han Weiye plans to buy a 51 per cent stake in Liaoning Hongtu Chuangzhang for 336.6 million yuan, which is about 10 times the PE in 2016. Hongtu Chuangzhang is a professional surveying and mapping geographic information technology enterprise, which will help the company develop in the direction of Internet of things, smart city and smart management, and at the same time improve its profitability. the promised net profit after tax for 2016-2018 is not less than 60 million yuan, 72 million yuan and 86.4 million yuan respectively.
Increase the layout of third-party logistics and invest in the construction of Dongguan Huapengfei Intelligent Logistics Park: around "Great Logistics"
According to the development strategy, the company will increase the capital of Dongguan Huapengfei with its own capital of 145 million yuan to promote the construction project of Dongguan Huapengfei Intelligent Logistics Park, with a total land area of about 37000 square meters. it will enhance the company's comprehensive strength and influence of integrated logistics services in South China.
Investment suggestion
Around the "big logistics" strategy, the company's traditional main business has developed steadily, promoting the construction of Dongguan Huapengfei Intelligent Logistics Park, and Bo Han Weiye plans to acquire a 51% stake in Hongtu in cash. It is estimated that the EPS from 2016 to 2018 will be 0.54,0.65,0.76 yuan.
Risk.
Market demand is declining, the progress of new industry expansion is lower than expected, integration is not up to expectations, and so on.