Main points of the report
Event description
The annual operating income of the company was 268 million yuan, a sharp increase of 171.17% over the same period last year, with a net profit of 100 million yuan and a loss of 335 million yuan last year. The net profit margin was 14.29% EPS 0.09 yuan. Each share increased by 10 shares.
Event comment
The main business performance is beautiful, and the investment income promotes the net profit to rise. As for the main business in 2015, revenue increased by 171% compared with the same period last year, mainly due to the substantial increase in the opening rate of the company's core commercial real estate project, the Royal Court Plaza, to 95% and the increase in rental and management fee income during the reporting period. At the same time, under the combined influence of the decline in the company's sales and financial expenses and the 81 million yuan gain from the sale of BCCHK forestry shares, the company's net profit substantially reversed losses compared with the same period last year.
The fixed increase will improve the capital structure and help the transformation. In 2015, the company raised 3 billion yuan, 1 billion of which was used to acquire 100% equity in Huangting Culture, and the rest was used to repay debts and replenish cash, reducing the company's financial leverage and improving its debt structure. By the end of the reporting period, the company's asset-liability ratio was 37%, net debt ratio was 13%, and the financial structure was good; the ratio of monetary funds to (short-term loans + long-term liabilities due within one year) was 3.05, with sufficient monetary funds and little pressure on the company to repay its debts. It provides a fertile financial soil and anti-risk ability for the transformation of the company.
Divest the forest business and operate with a "light" attitude. In 2015, the company completed the divestiture of its traditional forest business, focusing on the operation of commercial real estate, especially its core quality project, Huangting International Shopping Mall, which has a total construction area of 138,000 square meters, located in the CBD center of Shenzhen City, and is a new commercial landmark in Shenzhen. At the same time, in order to build a high-end shopping center, the company and Wangfujing Management Company jointly set up a joint venture shopping center management company to expand with real estate operation and management services as the core, transform into light-asset operators, and have broad prospects for future development.
Buy concentric funds and look into the distance of "real estate". During the reporting period, the company invested 283 million yuan to complete the 17% equity acquisition of the "Shenzhen Micro re-loan Central Bank"-concentric fund. "E Road Peer" under the concentric fund is a P2P network loan platform with state-owned background. as the largest shareholder, the company indirectly obtained a small re-loan business license, providing a financial platform for the company to build a real estate service provider. At the same time, the company has also set up companies such as the Royal Court M & A Fund to build an investment platform for real estate service providers. The development of the company's future real estate service providers is worth looking forward to.
Investment rating: the EPS in 2016 and 2017 is expected to be 0.15 and 0.23 yuan per share, respectively, and the corresponding share price PE is 199,134 times, giving a "buy" rating for the first time.
Risk hint: the progress of transformation lags behind, and the rental rate of commercial real estate is not up to expectations.
