Main points of the report
Event description
According to the mid-2016 report released by Beautiful Ecology, the operating income during the reporting period reached 561 million yuan, up 38.12% from the same period last year, with a gross profit margin of 27.94%, an increase of 13.47% over the same period last year, and a net profit of 26 million yuan, up 1519.15% from the same period last year.
According to this calculation, the company achieved revenue of 440 million yuan in the second quarter, up 73.68% from the same period last year, gross profit 28.24%, 14.50% higher than the same period last year, and net profit attributable to 59 million yuan, up 1455.51% EPS0.07 yuan from the same period last year.
Event comment
Revenue gross profit margin increased, performance met expectations: the company acquired 100% stake in Octopus Garden in 2015, which greatly affected the company during the reporting period: operating income increased by 38.12%; gross profit margin increased by 13.47%; three expenses increased by 88 million yuan; accounts receivable increased, and the provision for bad debts increased, resulting in an increase in asset impairment loss of 5 million yuan. At the same time, affected by the increase in business reform, business tax and additional tax are reduced by 9 million yuan. In addition, the return on the company's BT project financing business increased during the reporting period, and the investment income also increased by 17 million yuan, resulting in a final net profit of 26 million yuan. Coupled with a small base, the net profit soared 1455.51% from the same period last year, achieving the expected growth rate of at least 1249.69%.
Quarter by quarter, revenue and gross profit margin increased by 73.68% and 14.50% respectively in the second quarter than in the first quarter, resulting in a net profit of 59 million yuan, an increase of 1455.51%.
Expand the PPP model business to ensure the continuous growth of orders: the company signed a new PPP project during the reporting period, with a total investment of 300 million yuan. With the popularization of PPP model in the field of landscape engineering, we believe that the company has a strong ability to take orders and keep growing orders by virtue of its advantages in technology, quality control, business development and financing ability.
Transformation in the field of landscaping, the performance of sustained growth can be expected: the company began to transform the field of landscaping in 2013, and acquired Octopus Gardens wholly in 2015. Octopus Garden has many business qualifications, such as first-class urban landscaping and Grade B landscape engineering design, with business scope all over Jiangsu, Beijing and other places. This acquisition will greatly enhance the competitiveness of the company after the transformation. During the reporting period, Octopus Garden has signed two cooperation framework agreements, with a total investment of about 1.91 billion yuan, which is 8.3 times of the operating income in 2015, laying a good foundation for performance growth.
It is estimated that the company's EPS in 2016 and 2017 will be 0.20 yuan and 0.27 yuan respectively, and the corresponding PE will be 40 times and 29 times respectively, with a "buy" rating.