Main points of investment:
1. Event
In its annual results report released on April 30, 000638.SZ said it had a net loss of 35.3938 million yuan in 2015, compared with a profit of 3.0254 million yuan in the same period last year. Operating income was 239 million yuan, an increase of 23.99 percent over the same period last year, and a basic loss per share of 0.1144 yuan, compared with a profit of 0.0098 yuan in the same period last year.
At the same time, the first quarter report of 2016 was released, during the reporting period, the company achieved operating income of 54.9503 million yuan, an increase of 62.27% over the same period last year; operating profit of 8.9099 million yuan, compared with-6.218 million yuan in the same period last year; and net profit belonging to the owner of the parent company was 8.9999 million yuan, an increase of 274.15%. The gross profit margin was 16.21%, compared with negative in the same period last year.
two。 Our analysis and judgment
(1) with the transformation of the traditional main business, the company's development is facing an inflection point.
According to the 2015 annual report, the main business was affected by rising business costs, resulting in an increase in operating income but a decrease in profits. The company's main business cost is mainly composed of the cost of wood sales, of which: the plate cost is 109620211.68 yuan, accounting for 44.35% of the total cost, a decrease of 34.58% over the previous year; the log cost is 127583820.04 yuan, accounting for 51.61% of the total cost, an increase of 657.58% over the previous year.
According to the first quarter of 2016 report, the company's revenue level is stable, and the profit level is much higher than the revenue level. During the reporting period, the company achieved an operating income of 54.9503 million yuan, an increase of 62.27% over the same period last year; an operating profit of 8.9099 million yuan, compared with-6.218 million yuan in the same period last year; and a gross profit margin of 16.21%, which was negative in the same period last year. The increase in profit has greatly exceeded that of income.
The substantial increase in the company's profit level mainly comes from the sale of 51% of the shares in Hainan Longjian Industrial Co., Ltd., and the investment income within the scope of the merger is about 22.5 million yuan. The 26th meeting of the Seventh Board of Directors was held on December 29, 2015, and the motion on the sale of 51% equity in Hainan Longjian Industrial Co., Ltd. was examined and approved. The company transferred 51% of the shares held in Hainan Longjian to Zhejiang Merchants, and determined that the amount of the agreement involved in the equity transfer was RMB 53 million. By the end of this report, the transaction on the sale of 51% of the shares of Hainan Longjian Industrial Co., Ltd. has been completed.
(2) deepen the layout of "Internet + Medical Care" and seize the key links of the industrial chain.
In order to promote the development of medical and health business under Internet + model, the company plans to build a medical plate layout with "hospital-drugstore-family-rehabilitation-oral cavity" as the core through multiple layouts. In November 2015, the company signed the Strategic Cooperation Framework Agreement with the Sichuan Provincial Health and Family Planning Commission, which officially opened the prelude for the company to enter Internet + 's medical service field. Wanfang Development will be the investor and operator of "intelligent medical care" in Sichuan Province, with the support of new information technology, with the goal of building an intelligent hospital for the benefit of the people, and actively begin to improve the medical treatment environment. In line with the cooperative purpose of "government leadership, enterprise participation, resource optimization and forming joint force", with Sichuan Province as the core, the national layout of the medical and health industry information construction of the new road.
The company's trading will be suspended from January 5, 2016 due to the signing of an equity investment intention agreement with Chengdu Telecom NetEase, Inc Medical Technology Development Co., Ltd. ICT NetEase, Inc is a digital hospital information system based on electronic medical records and a regional health information management platform based on health records, which helps the company to strengthen the layout of intelligent medical field. This restructuring is complicated and may place other medical-related assets, and may involve the issue of shares to purchase assets.
(3) to establish diversified financing channels to provide financial guarantee for business transformation.
In January 2016, Wanfang Xinrun signed a Partnership Agreement with CICC Qianhai Equity Investment Fund Management Co., Ltd., and the two sides jointly contributed 6 million yuan to set up Shenzhen Wanfang CICC Qianhai Investment Management Center. In February 2016, the company signed a "joint venture agreement" with Shanghai Yinpai Investment Management Center, Shanghai Caigu Investment Center, Beijing Tianhua Junze Capital Management Co., Ltd., and Beijing Daojixing Investment Consulting Co., Ltd. the parties will jointly contribute 60 million yuan to establish Wanfang Wealth Investment Management Co., Ltd.
The company is currently in a period of business transition, investment in new business or mergers and acquisitions need financial support. The above projects help to establish diversified financing channels and provide financial guarantee for the company's business transformation.
3. Profit forecast
Through the acquisition and integration of a number of mobile medical related enterprises, the integration of online and offline medical resources, the layout of smart medical business, and the establishment of multiple financing channels to provide financial guarantee for the company's business transformation, it is expected that the profitability will be further enhanced in the future. We estimate that the company's EPS for 16-17 years is 0.06 yuan and 0.09 yuan respectively.
4. Risk hint
(1) the performance of the integrated company is lower than expected; (2) the overall development of intelligent medical industry is not as expected; (3) market competition risk.
