The decline in performance narrowed, looking forward to the inflection point of transformation and upgrading.
During the reporting period, the company achieved revenue of 11.012 billion yuan, YOY-23.8%; attributable to shareholders of listed companies-190 million yuan, net operating cash flow of YOY-203.3%; 2.58 billion yuan, the first time in four years from negative to positive; EPS was-0.08 yuan, the expense rate during the YOY-180%; period increased by 7.3%, and the net interest rate decreased by 5.9%. 2016Q1 revenue fell 9.28% from the same period last year, 10.8% from the previous month, and the net profit from the home was-160 million yuan, down 19.7% from the same period last year, with an increase of 33.6%. The company's performance is basically in line with expectations, the decline in revenue and net profit in the first quarter of 16 have narrowed, the company continues to upgrade its traditional business, and its performance is expected to stabilize and pick up.
The decline in investment is a drag on the traditional sector, and there are many points for industrial upgrading.
In the past 15 years, the total revenue of building materials commodities and commercial housing contributed 63.3%, which was basically the same as last year. Revenue YOY-30.1%/-12.7%, is mainly due to a decline of 11.1% in fixed asset investment and 28.5% in real estate development investment in Northeast China in the past 15 years, resulting in a weak downstream demand for cement, a decline in cement prices and cement sales, and a 9.9% decline in gross profit margins for building materials and commercial housing respectively. The decline in coal prices during the reporting period reduced the company's contribution to coal revenue by 7.5%. We judge that the company will further adjust the cement and coal business sectors in the future to achieve the adjustment of the high-debt asset structure of traditional industries. With ecology and new urbanization as the starting point, the real estate company began to pay attention to the layout of first-and second-tier cities, and the ecological health-preserving real estate is quite interesting.
Accelerate the business layout of the pharmaceutical sector and improve the new growth point of performance
The company's pharmaceutical industry is the main bright spot for future performance, with 15-year YOY+39.2%, revenue contribution up 5.9% year-on-year, and gross profit margin up 6.0%. The company recently announced that it plans to add 730 million shares and raise 3.435 billion funds for the construction of pharmaceutical industry supporting facilities, general medicine, health products, biological vaccines and other projects, as well as high-tech R & D projects. The plan shows that the company intends to rely on the Pharmaceutical Industry Park, increase research and development, achieve breakthroughs in anti-cancer traditional Chinese medicine and biological vaccines, and create a new profit growth point of "health services and health products". And committed to the establishment of a "physical store + network sales + free medicine delivery + wholesale" new business model.
The layout of "Medical Care + Internet Media + Finance" is worth paying attention to.
In 15 years, the company plans to invest 53.3 million yuan and seven other companies to set up Jilin Internet Media Co., Ltd., mainly engaged in e-commerce, new media services, etc., actively carry out transformation work; 15 years of medical and financial sectors have achieved certain investment income, with the entry of Internet media, the future layout of "medical treatment + Internet media + finance" will be more worthy of attention.
Look forward to the performance inflection point and maintain the "overweight" rating.
It is estimated that the company's EPS for 2016-2018 will be 0.08-0.09-0.10 yuan. Based on the company's industry status and expected growth, the company will maintain its "overweight" rating.
Risk tips: changes in the macroeconomic environment; intensified market competition; the transformation is not up to expectations.
