Events:
Hunan Development Chunhua Health Investment Co., Ltd., a subsidiary of the company, plans to build a health industrial park project in Changsha County, and signed a "Changsha County Investment Project contract" with the people's Government of Changsha County. The proposed Chunhua Health Industrial Park project is a service industry project. the proposed project includes rehabilitation hospital, pension community, health management center, health resort hotel, convalescent vacation base, university for the elderly, supermarket for the elderly, commercial district for the elderly, mountain sports park and related supporting and other multi-functional large-scale health-preserving and old-age tourism complex. The total investment of the project is about 4 billion yuan, and the investment intensity is not less than 3 million yuan per mu, of which the total investment in the first phase of the project is not less than 1 billion yuan.
Main points of investment:
Chunhua Health Industrial Park project signed a project contract to attract investment, the large health industry continues to promote. The Changsha county government listed the Chunhua Health Industrial Park project as a major investment attraction project for the modern service industry in Changsha County, and was responsible for listing this investment project into the key construction projects in Hunan Province. Enjoy all preferential policies on pension, medical and agricultural, leisure tourism and small town construction projects in the state, Hunan Province, Changsha City and Changsha County. We believe that the Chunhua Health Industrial Park project and the company's original rehabilitation business constitute a good synergy to help the company actively transform into great health. Xiangya Pok'ai Rehabilitation Hospital achieved a net profit of 16.21 million yuan in 2015, exceeding the net profit commitment of 16 million yuan.
The steady growth of the original power provides cash flow for business transformation. In 2015, Zhuzhou Aviation Power Branch, the holding company Bird's Nest and the participating python company had an installed capacity of 14,200,000 kilowatts and 60,000 kilowatts respectively, and the electricity prices of the three power stations were 0.366, 0.37 and 0.366 yuan per kilowatt-hour, respectively. There was no difference in installed capacity and electricity price between the previous year and the previous year. The electricity consumption of online access in 2015 was 816.7 million kilowatt hours, 56.564 million kilowatt hours and 298.7 million kilowatt hours respectively. The net cash flow of the company's operating activities in 2015 was 125 million yuan, contributing cash flow to the company's new business.
The company is expected to benefit from the acceleration of the reform of Hunan state-owned enterprises in the future. The controlling shareholder of the company is Hunan Development Asset Management Group Co., Ltd., and the actual controller is the Hunan Provincial people's Government. In May 2015, the name of the company's controlling shareholder changed from "Hunan Development Investment Group Co., Ltd." to "Hunan Development Asset Management Group Co., Ltd.". It is expected that the actual controller will integrate state-owned assets. We believe that the company, as the only listing platform of Hunan Development Asset Management Group Co., Ltd., is expected to benefit from the acceleration of the reform of Hunan state-owned enterprises.
Keep profit forecast and rating unchanged: the company is the only listing platform under Hunan Development Asset Management Group. Hydropower, the main business, has benefited from abundant water this year and is expected to contribute more cash flow to provide more support for the development of the second main business of health care and pension. It is estimated that the return net profit of the company will remain unchanged at 156 million yuan, 160 million yuan and 161 million yuan in 16-18 years, and the corresponding EPS will be 0.34 yuan per share, 0.34 yuan per share and 0.35 yuan per share, respectively, and the corresponding PE of the current stock price is 39 times, 39 times and 38 times respectively. Maintain a "buy" rating.