Events:
From January to June 2016, Wass shares achieved operating income of 525 million yuan, down 17.49% from the same period last year. The net profit belonging to shareholders of listed companies was 46.0294 million yuan, up 28.96% from the same period last year. The net profit after deducting non-profit was-118 million yuan, slightly higher than that of-109 million yuan in the same period last year. Viewpoint:
The attributable net profit increased by 28.96%, and the property disposal contributed to the performance. In the first half of 2016, the company achieved operating income of 525.4619 million yuan, down 17.49% from the same period last year, mainly due to the sale of 51% equity in subsidiaries Hailong Xingda and Longtianlu. The attributable net profit was 46.0294 million yuan, an increase of 28.96% over the same period last year. The main reason is that the investment income from the sale of equity contributes a lot to the performance. However, during the period, the expense rate rose 12.07 percentage points year-on-year to 67.05%, and the gross profit margin fell 7.97 percentage points to 30.65% year-on-year. Of this total, operating income in the second quarter of 2016 was 253 million yuan, down 2.19 percent from the same period last year, significantly narrowing down; the attributable net profit was 26.7437 million yuan, an increase of 699400 yuan compared with the same period last year, reversing losses compared with the first quarter.
The operation of community shopping centers will be steadily promoted and the upgrading of business formats will be promoted. Community shopping centers focus on leisure, entertainment and cultural services, mainly for consumers within a radius of 3 kilometers, and most of the stores are fast consumer brands. As of the first half of 2016, the number of open shopping centers operated by the company has increased from 2 in 2008 to nearly 40, distributed in Beijing, Chengdu, Hefei, Nanjing, Dalian and other areas. obtain shopping center property resources through purchase, rental, entrusted management, etc. The company actively promotes the issue of shares to purchase assets and raise supporting funds, and intends to acquire the assets of shopping malls under construction in Shanxi and Qingdao, so as to further enhance the company's market share.
The light asset operation mode is neck and neck with equity investment. In November 2015, BHG Reit, the company's sponsor, was successfully listed on the Singapore Stock Market. In the first half of 2016, the company sold 51% of each of Longtianlu Investment, Xinglian Shunda and Hairong Xingda, and continued to actively promote the light asset operation strategy to improve operational efficiency by providing management services to securitized assets. The company plans to introduce the CITIC Industrial Fund at a price of 3.43 yuan per share at 860 million yuan. Upon completion, it will become the company's second largest shareholder (18.4%). It has already invested in ele.me, singing bar and other projects to invest abroad in Shenzhen Chi Shan, Longzu Tianli and Shanghai Rongyu. The realization of the company's REITs property assets will effectively dock with equity investment, on the one hand, realize light asset operation through entrusted management of REITs property assets to realize property value-added income and collect property management fees; on the other hand, rely on the resource advantages of CITIC Industrial Fund, obtain investment income with the help of high-quality equity investment projects, integrate high-quality property resources to achieve business synergy.
Conclusion:
Community shopping center conforms to the development trend of retail format, the company as the only A-share community shopping center operator, will continue to enjoy the format upgrading dividend. The company's development strategy is clear, with the continuous promotion of light asset operation strategy and the introduction of CITIC industrial fund, the company's performance can be reversed. It is estimated that the EPS of the company from 2016 to 2018 is 0.16,0.22,0.25,25.5,18.8,16.1 times of the corresponding PE, respectively, giving a "recommended" rating for the first time.
Risk Tips:
The macro-economy is in the doldrums, the equity investment is lower than expected, the fixed increase is not too late, etc.
