2015 performance was lower than expected
In 2015, the company achieved operating income of 6.174 billion yuan, YoY+26.87%, vested net profit of 637 million yuan, YoY+48.33%, and EPS of 0.31 yuan, which was lower than expected. It is proposed to pay a cash dividend of 2 yuan (including tax) for every 10 shares.
The income of pharmaceutical business is 1.94 billion yuan, of which Huabang Pharmaceutical's income is 950 million yuan and net profit is 170 million yuan, while Parkson Pharmaceutical's income is 760 million yuan and net profit is 220 million yuan.
Agrochemical business is affected by the downturn of the global pesticide market, with an income of 4.08 billion yuan, YoY+9.21%.
Trend of development
Pharmaceutical business continues to promote the strategy of "Great China Medical Alliance" and gradually realize "medicine".
Dual-engine drive with "medical". In 2015, through the acquisition of Chongqing Zhien Hospital, German Rheinland Hospital, Hebei Life Origin Company and Swiss Biopharmaceutical Group, and invested in the establishment of Huabang Huiyue Investment Co., Ltd., Huabang Medical Co., Ltd., Huabang Medical and Beauty Technology Co., Ltd., it has carried on the layout in the fields of rehabilitation medicine, stem cell, anti-tumor treatment, Internet medical platform, medical cosmetology and so on. In the future, the company will continue to integrate high-quality medical resources at home and abroad through acquisition and self-construction, dig deep into the regional medical market, and create a medical system covering the whole country.
Redistribution of agrochemical business resources. Beijing Yingtai will buy a 100 per cent stake in Shandong Fuer for 1.195 billion yuan, valuing 15 years' net profit at 14 times. The company transferred a 20.2% stake in Kaisheng Xincai to 14 investors at a price of 132 million yuan, corresponding to a 15-year net profit valuation of 15 times. Kaisheng new material is proposed to be restructured to set up a joint stock limited company and listed on the new third board.
Profit forecast
Due to the decline in the global agrochemical market, the 2016 EPS forecast was lowered by 22% to 0.37 yuan, and the 2017 EPS forecast was given 0.43 yuan.
Valuation and suggestion
The current share price is 26 times / 22 times corresponding to 15max 16-year Pamp E. Due to the downward movement of the valuation center, the target price was reduced by 27% to 12 yuan, corresponding to 32 times Pmax E in 16 years. Maintain "recommendation"
Rating.
Risk.
The progress of project implementation and merger and acquisition are lower than expected.