Main points of the report

Event description

Beixinluqiao released the company's annual report for 2015. during the reporting period, the operating income was 5.115 billion yuan, down 11.93% from the same period last year, and the gross profit margin was 11.03%, down 0.05% from the same period last year. The net profit attributed to the owner of the parent company was 34 million yuan, up 11.91% from the same period last year.

Among them, the operating income in the fourth quarter was 2.094 billion yuan, down 6.67% from the same period last year, the gross profit margin was 5.86%, down 3.57% from the same period last year, and the net profit attributed to the owner of the parent company was 10 million yuan, up 984.43% EPS0.02 yuan in the fourth quarter and EPS0.02 yuan in the third quarter.

Event comment

The decline in costs contributes to profits: due to the low economy of the industry, the revenue of the company's main engineering construction business fell 13.50% compared with 2014, dragging down the overall revenue by 11.93%, while fierce competition in the industry led to a slight decline in the company's gross profit margin. In terms of expenses, as the interest expense of the company's BT project surrogate funds was borne by the owner, the financial expenses for the reporting period decreased by 74 million yuan, and the superimposed investment income increased by 30 million yuan over last year, resulting in an 11.91% increase in net profit in the reporting period compared with the same period last year.

Gross profit margin fell 3.57% in the fourth quarter, a significant decline, while revenue also fell by 6.67%. However, due to the contribution of investment income and reduced financial expenses, the loss was reversed in the fourth quarter of 2015.

Subject to the downturn of road and bridge infrastructure: as the largest road and bridge construction enterprise in Xinjiang, the company has a strong competitive advantage in the northwest region. However, due to the lack of motivation for local governments to promote infrastructure investment projects under the pressure of capital and debt, the company's business volume has declined. At present, the infrastructure in western China is relatively backward, and the construction of roads and bridges has more room for growth. in the future, with the tilt of policies and funds in place, the performance of the company is expected to pick up. At the same time, the company has rich overseas engineering experience, with the gradual promotion of the national "Belt and Road Initiative" strategy, the company is expected to further expand overseas business.

Actively strengthen management and adjust structure: while strengthening internal management, the company strives to adjust its structure and optimize its resources. during the reporting period, the company gradually spun off the business of new building materials, glass and steel structure. at the same time, five new units were merged: among them, the equity acquisition of a construction company and a labor service company was completed, and the company's resources tended to be more concentrated to the main business.

It is estimated that the company's EPS in 2016 and 2017 will be 0.075 yuan and 0.09 yuan respectively, corresponding to PE112 and 91.