Description of the event
In the first half of 2016, Zhunyou Co., Ltd. achieved operating income of 996.24,500 yuan, down 25.03% year on year, gross margin fell 17.11 percentage points to -0.84% year on year, net profit loss attributable to the parent company was 46.2687 million yuan, down 271.07% year on year, EPS was -0.19 yuan, and -0.05 yuan for the same period last year.
Incident reviews
The continued decline in oil prices has led to a decline in the company's revenue. The company's revenue fell 25.03% in the first half of 2016, mainly due to continued low international crude oil prices, a sharp decrease in the company's workload, and a drop in service prices.
Gross margin declined and financial expenses rose sharply, resulting in a serious loss in the company's net profit. The company's net profit loss in the first half of 2016 was 46.2687 million yuan, down 271.07% year on year. The main reasons were: 1) the decline in the company's gross margin led to a year-on-year decrease of 22.4561 million yuan; 2) an increase in exchange losses on mergers and acquisitions loans and an increase in the number of interest periods, which led to an increase of 9.3652 million yuan in financial expenses.
Acquire Zhongke Fuchuang and actively seek transformation. The company's traditional main business is to provide oil and gas extraction enterprises with technical services such as dynamic monitoring of oil fields, construction installation, and transportation services. However, as international oil prices continue to fall and economic recovery is weak, the company's main customers have cut the scale of investment in oil and gas exploration and development, causing both the company's workload and service prices to fall, and performance continues to decline.
Therefore, in order to cope with the impact of continuing lower oil prices, the company is actively promoting business transformation. Zhongke Fuchuang, which was acquired this time, is mainly engaged in integrated services for express logistics terminals. The express delivery market where it is located has an average compound annual growth rate of more than 50%. The market prospects are broad, which is conducive to improving the company's performance.
Zhongke Fuchuang has great potential for development, and the increase in profits is considerable. Zhongke Fuchuang currently specializes in express logistics terminal intelligent integrated services and intelligent distribution system overall solution services. The smart courier cabinet market, where it is located, is expected to exceed 10 billion yuan in market space in the next five years, and there is great potential for market development.
Compared with other smart courier cabinet operators, Zhongkefu achieved profits ahead of schedule in the current stage. In the first quarter of 2016, it achieved revenue of 23.1037 million yuan and attributable net profit of 8.413,200 yuan. With the completion of the acquisition, the company's profitability will be greatly enhanced (Zhunyou Co., Ltd. achieved revenue of 99.6425 million yuan in the first half of 2016, and attributable net profit - 46.2687 million yuan). The controlling shareholder of Zhongke Fuchuang promised to achieve net profits of no less than 140 million yuan, 265 million yuan, and 365 million yuan respectively in 2016-2018, which will greatly increase the company's safety margin.
Maintain the “increase in holdings” rating. The company is currently revising the contents of the restructuring plan in accordance with the latest requirements of the Securities Regulatory Commission and is in the suspension stage. If we consider completing the acquisition of Zhongke Fuchuang, we expect the company's EPS in 2016-2018 to be 0.14 yuan, 0.46 yuan, and 0.72 yuan, respectively. The corresponding PE will be 156 times, 47 times, and 30 times, respectively, maintaining the “increase in holdings” rating.