Events:
On October 27, 600358.CH/ United (CNY 10.72, unrated) released its quarterly report of 2016. In the first three quarters of 2016, the company achieved operating income of 58.88 million yuan, an increase of 5.46% over the same period last year. The net profit loss of its parent company was 51.76 million yuan, down 349.57% from the same period last year. The net profit after deducting it was 51.32 million yuan, down 18.15% from the same period last year. Basic earnings per share was-0.1120 yuan per share, down 333.33% from the same period last year. In the third quarter, the company realized operating income of 15.68 million yuan, an increase of 48.03% over the same period last year, a net profit loss of 18.89 million yuan, an increase of 1.56%, and a net profit loss of 18.83 million yuan, down 9.80% from the same period last year.
Comments:
1. The main business continued to be in the doldrums in the third quarter, and continued losses forced the company to transform. In the third quarter, the company's main business still lost money. Although its operating income increased by 48.03%, its net profit was still negative. As Tangshan Company disposed of its stake in Nanjing Yishang Tianyuan in the same period last year, it earned an investment income of 79.0119 million yuan, resulting in a sharp decline in net profit in the first three quarters. Overall, the company's current main business profitability is weak, there is an urgent need to find new profit points.
2. Plan to acquire Internet advertising companies to enhance the company's sustainable profitability. In July this year, the company issued a major asset restructuring plan, which intends to buy 100% equity in the new line by issuing shares and paying cash, and raise matching funds of no more than 193 million yuan, with the equity priced at 400 million yuan. The new line sees the main business as the Internet advertising business aimed at game manufacturers, with revenue of 43.3 million yuan and net profit of 7.78 million yuan in 2015. The other party promised that the net profit of the new line from 2016 to 2018 would not be less than 36 million yuan, 47 million yuan and 61 million yuan. At present, the program is in the process of feedback to the CSRC.
3. Investment suggestions: the main business of the company's hot spring hotel remains in the doldrums and is in urgent need of transformation. It is planned to acquire Internet advertising companies in the near future, and invest in equity projects through industrial M & A funds to comprehensively transform to the outdoor sports and entertainment industry.
The company's current market value of 5.4 billion yuan, considering the acquisition of the new line after the total market value of 5.8 billion, it is recommended to continue to pay attention.
