Event description
Pubang Garden released its mid-2016 report, with revenue of 1.098 billion yuan, down 4.14% from the same period last year, gross profit of 21.08%, down 3.93% from the same period last year, and net profit of 73 million yuan, down 48.41% from the same period last year.
Among them, the company's revenue in the second quarter was 664 million yuan, down 10.33% from the same period last year, the gross profit was 21.04%, down 5.12% from the same period last year, and the attributable net profit was 64 million yuan, down 43.95% from the same period last year.
Event comment
During the period, the cost increased, and the cash flow situation improved significantly: the company's revenue decreased in the first half of the year due to the low real estate boom and Rain Water flooding. In addition, the company's expenses increased significantly during the period, of which management expenses increased by 18.56% compared with the same period last year. This is mainly due to the increase in depreciation and amortization while increasing R & D investment and financial expenses by 133.33%, mainly due to the decrease in interest payments during the current period. The decline in performance and the rise in fees led to a 48.41% drop in net profit in the first half compared with the same period a year earlier. The net outflow of operating cash flow decreased by 53.96%, mainly due to the company's efforts to recover project funds and strengthen cash flow management since the beginning of this year.
The scale of the main garden business is stable, and profit margins have narrowed: in the first half of this year, economic structural problems are still prominent, overcapacity contradictions continue to accumulate, the total number of new orders signed by the company has shrunk, and the gross profit margin of some newly signed orders has dropped slightly. The company's landscape engineering accounts for 84.86% of the total revenue, and the main business accounts for a concentrated proportion, which makes it more difficult to reduce the cost. In the first half of this year, the revenue of the garden industry reached 932 million, down 10.78% from the same period last year. The gross margin of the main business fell 33.67% from the same period last year, and the gross profit margin dropped to 17.63% from 23.71% in the middle of last year, a decrease of 6.08%.
The environmental protection field will give full play to the comprehensive advantages of the platform: in 2015, the company acquired Shenzhen Blue Environmental Protection to enter the solid waste treatment business of the environmental protection industry, with a performance commitment of 32 million yuan in that year and a net profit of 27.77 million yuan, with a 16-18-year performance commitment of 4640 yuan, 6728 yuan and 90.28 million yuan. The environmental protection industry will make full use of the channel and financial advantages of the company's garden industry to give full play to the synergy effect and provide a new driving force for the company's future performance growth.
The Internet financial platform helps the company's resource integration: the company has invested 10 million yuan in 15 years to set up a wholly-owned subsidiary, Pubang Financial Control, which helps to make use of the credit data accumulated by the company's long-term cooperation with upstream and downstream enterprises in the industry. select high-quality and stable loan projects, achieve efficient docking between offline projects and online investment, so as to achieve resource integration and synergy.
It is estimated that the company's EPS in 2016 and 2017 will be 0.12 yuan and 0.13 yuan respectively, and the corresponding PE will be 63 and 58 times respectively.