I. Overview of events

On March 11, Dalian Friendship released its 2015 annual report. During the reporting period, the company achieved operating income of 2.794 billion yuan, down 22.33% from the same period last year, and its net profit was-187 million yuan, down 431.31% from the same period last year.

II. Analysis and judgment

The three main businesses are in the doldrums, and the preparation for the decline in inventory prices has caused the company to lose about 200 million yuan.

In the past three years, the company's main business has been in the doldrums, and its profitability has continued to decline. Retail business has been hit by e-commerce, and revenue growth is basically zero. Revenue reached 1.659 billion yuan in 2015, up 1.11% from the same period last year. Due to the chaotic competition in the same industry and other reasons, the revenue of the hotel business has declined for three consecutive years. Revenue reached 181 million yuan in 2015, down 16.60% from the same period last year. The real estate project company set aside 260 million yuan for inventory price reduction provisions for Dalian Furama International Project, Shenyang Friendship Times Square project and Handan Friendship Times Square project, resulting in a sharp decline in the company's real estate business profits. In 2015, the company realized real estate revenue of 927 million yuan, down 45.67% from the same period last year, and realized profit of-95 million yuan, down 131.13% from the same period last year.

Fixed increase of 6.27 billion yuan, distribution of financial assets in the whole industry chain

The company plans to issue 660 million shares to acquire some or all of the shares of 8 companies owned by Wuhan Financial Holdings for 6.274 billion yuan, including four types of financial assets: guarantee, credit, credit and Internet finance. According to the performance commitment, the return net profit of 2016, 2017 and 2018 of the assets to be acquired will not be less than 638 million yuan, 753 million yuan and 862 million yuan respectively, and the company's profitability will be greatly improved. At present, the company's asset restructuring-related work is being carried out in an orderly manner.

Backed by Wuhan SASAC, the platform has obvious advantages.

After the completion of the asset reorganization, Wuhan Financial Control will become the actual controller of the company, and the final actual control will be Wuhan SASAC. In addition, Wuhan Financial Holdings has banks, trusts, funds and other financial assets, the company as the only listing platform of Wuhan Financial Holdings, there are assets injection expectations in the future.

Third, profit forecast and investment suggestions

Regardless of asset injection, affected by the prosperity of the industry, the company's performance growth in the next few years is weak. It is estimated that the net profit of 16-18 years is-24 million yuan, 12 million yuan and 4 million yuan respectively; considering asset injection, according to the performance commitment, it is conservatively estimated that the net profit of listed companies in 16-18 years is 614 million yuan, 765 million yuan and 866 million yuan respectively, and the current stock price corresponds to PE in 19-15-13. Coverage for the first time, giving the company a "highly recommended" rating.

IV. Risk hints

1, the asset reorganization is blocked; 2, the performance of the target company is not up to expectations; 3, the main business of the company has declined sharply