Events:

The company announced that its revenue in the first three quarters was 872 million yuan, down 48.72% from the same period last year, and its net profit was 197 million yuan, up 125.52% from the same period last year. It deducted 190 million yuan from non-parent net profit, an increase of 152.53% over the same period last year, and basic earnings per share was 0.24 yuan, up 140% from the same period last year. At the same time, the company expects cumulative net profit from January to December 2016 to increase by about 150-200% compared with the same period last year.

Main points of investment:

The performance is in line with expectations and continues to benefit from the divestiture of the mineral business.

The three-quarter report is in line with our expectations: thanks to the divestiture of the mining business, the company achieved a net profit of 197 million yuan, an increase of 125.52% over the same period last year, deducting a non-return net profit of 190 million yuan, an increase of 152.53% over the same period last year, and basic earnings per share of 0.24 yuan, an increase of 140% over the same period last year. In addition, the company's ROE rebounded to 6.65% from-3.29% at the beginning of the year, while management expenses decreased by 63.25% compared with the same period last year. In terms of holding subsidiaries, driven by the real estate market, Nanning Jinqiao Commodity Co., Ltd. and Guangxi Wuzhou Real Estate Co., Ltd. achieved growth and reduced losses compared with the same period last year.

The main business of high speed is stable, and the trend of new business should be closely followed.

We expect that the company's highway toll revenue will be relatively stable in the future, and the service area business will become a new growth point; in addition, the company will combine its own advantages, lay out ASEAN trade in advance and continue to invest in Pingxiang logistics and trade sector. at present, the e-commerce plate has been initially built, and in the future, it may combine its own road network advantages and tap big data resources to provide more efficient logistics services.

Maintain the recommended rating

Considering the stability of the company's main business, the coordination between the logistics business and the main business, and will benefit from the growth of ASEAN trade for a long time, we maintain our previous "recommendation" rating for the company. It is estimated that the company's net profit for 16-18 is 274 million yuan, 356 million yuan and 373 million yuan respectively, EPS is 0.33,0.43 and 0.45 yuan respectively, and PE is 15.06,11.58 and 11.04 times respectively. Maintain the recommended rating.

Risk hint

The impact of economic downturn and high-speed rail diversion in Guangxi