Main points of investment
Events:
1. Mianshi Investment predicts that the company's operating performance will turn from loss to profit from January to June 2016, and is expected to achieve a net profit of 1.30-162 million yuan and basic earnings per share of 0.44-0.54 yuan.
2. The Chinese name of the company has been changed from "Beijing Mianshi Investment Group Co., Ltd." to "Beijing Mianshi Investment Group Co., Ltd.", and the securities abbreviation has been changed from "Mianshi Co., Ltd." to "Mianshi Investment".
Comments:
The results turned from deficit to profit in the first half of the year. Mianshi Investment predicts that the company's operating results will turn from loss to profit from January to June 2016, and is expected to achieve a net profit of 1.30-162 million yuan and basic earnings per share of 0.44-0.54 yuan.
The change in the company's performance is mainly due to the profit achieved by the transfer of the shares held by the associate Lhasa Shenghao Investment Co., Ltd. in Guangzhou Huangpu Chemical Co., Ltd., and the company calculates its share according to the proportion of shareholding, resulting in an increase in profits. According to the median forecast, the company achieved a net profit of 146 million yuan in the first half of 2016, which has greatly exceeded the 23 million yuan level for the whole year of 2015.
The name change highlights the future development of the company. The abbreviation of the company's securities has been changed from "Mianshi shares" to "Mianshi Investment" and from "MAINSTREETS" to "Soft Rock" for short in English. The main purpose of this renaming is to better highlight the future development of the company's business, but also to make it easy for investors to understand and enhance the company's image.
Investment advice: the company is a typical "small and beautiful" company with no interest-bearing liabilities on its books, plenty of cash and a high margin of safety. At present, the equity incentive of the company has been awarded and completed, and the excitement is fully in place.
We believe that the company has broad prospects for future development. We raise the company's profit forecast and estimate that the EPS from 2016 to 2018 will be 0.79,0.29,0.35 yuan respectively, corresponding to PE 18.0,49.0 and 40.6 times respectively, maintaining the overweight rating.
Risk hint: the real estate market transaction rebounded less than expected.
