Event: announcement semi-annual report 2016, operating income of 165 million yuan (+ 21.48%), net profit of 97 million yuan (+ 44.59%), non-return net profit of 97 million yuan (+ 44.49%), basic earnings per share of 0.21 yuan.
Main points of investment
#? In the first half of the year, the safety production situation of the hydropower industry in the ma Division of sum was stable and the efficiency of power generation was good, which made an outstanding contribution to the performance growth of the company. During the reporting period, extreme weather occurred frequently in Hunan area, and the task of flood control and flood control was heavy. The company responded actively, formulated an emergency plan for flood control and flood control, collected hydrological information and data in time, and adopted measures such as releasing the reservoir ahead of time and tail-blocking dispatching, to ensure the stable situation of safe production. Zhuzhou Avionics Branch completed 501.16 million kilowatt-hours of electricity on the Internet; Bird's Nest completed 30.5622 million kilowatt-hours of electricity; and Python completed 188.07 million kilowatt-hours of electricity.
At the same time, the company deeply implements the business development strategy of "focusing on hydropower and health care for the aged, supplemented by equity investment business". While doing a good job in the basic business of hydropower, the company will make every effort to promote the development of the health care industry for the aged, and all the work has been carried out smoothly. During the reporting period, the company's rehabilitation and medical chain projects in the province successively landed, the market expansion outside the province made a breakthrough, the mode of combination of medicine, health and care was further promoted, and the company's competitiveness in the field of health care for the aged was further enhanced. it is conducive to the rapid development of the company's medical and pension business. The income of 2016H1 health business is 253300 yuan, but its proportion in the main business income is still low.
Profit forecast and investment suggestions: the company's performance improved significantly during the reporting period, mainly due to the good production efficiency of the main hydropower industry, while the company actively distributed the healthy old-age health industry, the transformation effect is beginning to show. In terms of health care for the elderly, on the one hand, the company continues to upgrade its business in the province, creating a combination of high-end medical and nursing projects, on the other hand, actively expand the market outside the province, and explore a new model of innovative combination of medicine, health and care. It is estimated that the company's EPS in 2016-2018 will be 0.30 EPS 0.34 RMB 0.38 yuan respectively, and the current share price will be rated as "overweight" corresponding to PE in 47-42-37.
Risk hint: the promotion of pension projects is not up to expectations.