Net profit decreased by 4.8%, compensation payment dragged down performance
The company's revenue in the first half of the year was 233 million yuan, an increase of 13.59% over the same period last year, mainly due to the combination of Jingneng Natural Gas and Luojiang Natural Gas. The net profit of shareholders belonging to listed companies was 6.57 million yuan, down 4.82% from the same period last year. The compensation expenditure incurred by the company in terminating the commercial retail business was 1.8 million yuan. After deducting non-recurrent factors, the company's non-net profit increased by 15.64% compared with the same period last year.
Stop commercial retail and concentrate on the development of natural gas business
From the perspective of business, the company's commercial retail revenue reached 140 million yuan, an increase of 3.14% over the same period last year, and the gross profit margin decreased by 2 percentage points; affected by the increase in the scope of the merger, the gas business realized revenue of 72 million yuan, a substantial increase of 56.00% over the same period last year, and the gross profit margin was basically the same. The proportion of the company's commercial retail business has dropped to 63%. With the termination of the commercial retail business, the company's main business will be transformed into urban gas business.
The Shanghai Jiading project is progressing steadily and is expected to replicate in IDC, hospitals and other fields.
After the reduction of natural gas prices, distributed natural gas is already economical. With the loose online / grid-connected policy, it begins to expand in data centers, hotels, hospitals, airports and other fields. This year, next year may be the year when orders are quickly released for distributed natural gas projects. The company acquired the IDC leading halo new network distributed natural gas project in Jiading, Shanghai. The bidding for civil engineering and equipment related to the project has been completed and is expected to be put into operation in early 2017. The replication of the project is strong, and the company is expected to achieve order replication in IDC, hospitals and other fields.
Distributed natural gas is the target of high quality, and the participation of major shareholders will show confidence.
It is estimated that the EPS in 2016-18 is 0.08,0.22,0.35 yuan respectively. The increasing controlling proportion of major shareholders provides space for follow-up capital operation, employee shareholding locks the core interests of management, and the company has small market capitalization, low asset-liability ratio and large performance flexibility (15-year net profit on gas assets is about 56.42 million yuan). It is the target of high quality and high elasticity of distributed natural gas. It is expected that distributed natural gas projects will continue to replicate, giving a "buy" rating.
Risk hint
The cost of the divestiture of commercial retail business is higher than expected, and the promotion of distributed projects is not as expected.
