Shunfa Hengye released its quarterly report for 2016, with operating revenue of 430 million, down 56.6% from the same period last year, and net profit attributable to the parent company of 50 million, down 71.0% from the same period last year.
Profit margin improved steadily: since the first quarter of 2016 was not a centralized carry-over cycle, the delivery carryover decreased, the corresponding recognized revenue decreased, and the company could carry forward abundant resources in 16 years. At the end of the first quarter, the company had 5.2 billion accounts received in advance, an increase of 30% over the end of 15 years. Overall, we believe that the company's performance in 2016 is more flexible. According to our tracking, the company achieved sales of about 1 billion in the first quarter of 2016, and the Mizai Meicheng project is expected to continue to launch in the second quarter. according to our estimates, the company's stock + new goods value is expected to exceed 10 billion in 2016. sales for the whole year are expected to continue to grow steadily compared with 2015.
Further optimization of the financing structure: although the company did not acquire land in the first quarter, its finance further improved, with a net debt ratio of 10.2%, down 24 percentage points from the end of 2015, while short-term debt pressure also significantly improved. the net cash flow generated by the company's operating activities in the first quarter of 2016 increased significantly compared with the same period in 2015 due to the increase in sales rebates in the current period. On this basis, the company further optimized the financing structure and cost, respectively launched 1.2 billion medium-term notes and 1.2 billion corporate bonds, both of which have been approved, and the successful note has been issued. In addition, the company launched refinancing in 2014, which has been approved by the CSRC. Since the listing of the company, the capital chain is not abundant, and with the start of this refinancing, the company will also usher in the improvement of capital, laying the financial foundation for future international expansion and possible new business model.
Embrace the "Ju Neng City" and actively "go out": the company's future development ideas are gradually clear: 1, actively participate in the construction of the major shareholder Ju Neng City. In the next 10 years, Wanxiang Group will invest 200 billion yuan to build a Wanxiang innovative energy gathering city, which will include new energy components, batteries, passenger cars and other industries. As the core real estate platform of Wanxiang Group, it will play a core role in the development, construction and future operation of Ju Neng City. 2, actively promote the cooperation of American real estate business platform. Wanxiang USA has rich experience in investing in the United States, and the cooperation with the major shareholder American platform will help to increase investment in overseas real estate, which is expected to form a new growth point and realize the linkage between domestic and foreign markets.
Profit forecast and investment rating: we expect the company's EPS in 16-17 to be 0.32 yuan and 0.40 yuan respectively, maintaining the "overweight" rating.