Main points of the report
The event description company released its three quarterly reports for 2016.
Event comment
Rapid growth in performance, the main steady photovoltaic business. Ruihe shares achieved an operating income of 1.584 billion yuan in the first three quarters of 2016, an increase of 28.08 percent over the same period last year, and a net profit of 75 million yuan belonging to shareholders, an increase of 41.43 percent and 0.52 yuan over the same period last year. The change of the company's profit is mainly due to the steady growth of the company and the greater contribution to the growth of the photovoltaic industry. It is expected that this year's net profit will increase by 30% Murray 60% compared with the same period last year, and the fourth quarter net profit will increase by-22.72% Murray 145.63% over the same period last year. EPS0.58--0.72 for the whole year.
Profitability declined and cash flow improved slightly compared with the same period last year. In the first three quarters of 2016, the company's gross profit margin was 13.69%, down 0.60% from the same period last year; the net profit rate was 4.75%, up 0.45% from the same period last year; and the expense rate during the period was 4.78%, down 0.58% from the same period last year. The financial expenses increased the fastest, with an increase of 7 million yuan over the same period last year, mainly due to the increase in interest expenses on short-term loans of the company during the reporting period. Operating cash flow-21 million yuan, an increase of 97 million yuan over-118 million yuan in the same period last year, mainly due to the reduction of the company's current project expenditure.
Last year, Q4, Q1, Q2 and Q3 realized operating income of 5.83,5.18,5.07 and 559 million yuan respectively, up 29.34%, 27.35%, 23.57% and 33.21% respectively over the same period last year. The net profit attributable to shareholders of listed companies was 0.12,0.25,0.29 and 21 million yuan, up 18.26%, 33.74%, 48.60% and 41.46% respectively over the same period last year. The company's revenue is increasing year by year, and the revenue in the fourth quarter is more due to the characteristics of the industry.
The main business is steady development, and the old reform business can be expected in the future. As one of the leaders in the decoration industry, the company maintained steady growth in the first three quarters of the industry. The company's public clothes and customized hardcover are the basic industry, and there have been a lot of decoration orders this year. The company announced a total of 681 million major orders this year. In February, it received a total of 165 million decoration contracts with Jiangsu Theater, Washington Real Estate, Dalian Shicheng and Evergrande. In May, we received 516 million decoration contracts signed with Wuxi Industrial and Construction Center, Shenzhen Ningjia Real Estate, Huatze Investment and Xiangyang Industries. Orders on hand play a role in ensuring future performance. In the future, the company will continue to benefit from the promotion of the government's inventory policy and hardcover commercial housing policy, and the company, as one of the industry leaders, will continue to enjoy policy dividends. In addition, the company actively creates a customized home decoration platform to provide customers with one-stop Internet decoration services, and the pre-fixed additional funds will help accelerate the development of the company's Internet decoration business.
The company actively creates the construction concept of green environmental protection, energy saving and low carbon in the old reform business, and the old reform business will continue to benefit from a large number of old reform needs in Shenzhen in the future. Ruihe, a landmark building of the company, has been completed, which reflects the strength of the company's old reform and shapes the company's successful cases of old reform projects, which is conducive to undertaking a large number of old reform orders in the future. Through the steady expansion of the main business of public wear and customized hardcover and the promotion and supplement of the incremental old city transformation project business, the company gradually stabilizes the company's industry position.
Fixed increase in place, photovoltaic projects will bring stable benefits. The company cooperates with Xinyi to cut into the photovoltaic field to obtain incremental engineering business and stable investment income. With the landing of the company in the first half of the year, raising 850 million yuan to invest in Jinzhai County Baitazhai Xinyi 100MWp photovoltaic grid-connected power station project, photovoltaic building integrated R & D center project and other projects, will further strengthen the layout of photovoltaic business. In addition, the company has increased its investment in Credit Suisse Energy to invest in photovoltaic power generation projects. at present, part of the photovoltaic power station has been connected to the grid. The increase of 19 million yuan in investment income in this period compared with the previous period is mainly contributed by Liu'an Xinyi Solar. In the future, the company will continue to promote the integration of photovoltaic construction and build a photovoltaic industry chain with photovoltaic power generation as the pillar industry and photovoltaic building installation and construction as the auxiliary industry. Cultivate new profit growth points.
Investment suggestion: the forecast company's EPS 0.65 EPS in 2016-2018 is 0.87 Plus 1.2 yuan, corresponding to the PE in 2016-2018 is twice as much as 75-56-41, giving an overweight rating.
Risk tips: economic fluctuation risk, new business development risk and so on.