Main points of investment

Event: the company released 2015 results KuaiBao, the preliminary accounting of the company's 2015 revenue of 642 million yuan, an increase of 34.84% over the same period last year; net profit of 125 million yuan, down 16.64%; and basic earnings per share of 0.65 yuan.

Comments:

The main business has been actively upgraded, and revenue has maintained rapid growth. The company initially accounted for 642 million yuan in revenue in 2015, an increase of 34.84% over the same period last year, mainly because the company actively seized the market opportunity and strengthened its marketing efforts in 2015. In 2015, the company launched joint venture stations such as Changchun, Shenyang, Kunming and Zhengzhou, and opened franchise stations in 22 cities. In addition, the company unified its real estate platform "365 Real Estate Home Network" and "365 Taofang" as "365 Taofang" in 2015, which is consistent with the APP brand "365 Taofang". The company has effectively enhanced the user experience and coverage through brand adjustment and urban site expansion, and maintained the continuous growth of the main business income.

Profits fell slightly, mainly due to the drag on new business. The company initially calculated that the net profit of returning to the mother in 2015 was 125 million yuan, down 16.64% from the same period last year. Mainly due to the expansion of the company's offline marketing services, the corresponding costs have increased; at the same time, the company decoration, finance and other new business is still in the expansion period, pre-personnel, research and development, promotion and other investment is larger. In addition, the expense provision of the company's employee stock ownership plan also has a certain adverse impact on the company's performance. The company has actively laid out the real estate post-service market, and has tried in decoration, finance and other fields. although it is a drag on performance in the short term, the new business will bring new impetus to the company's sustainable development in the long run.

Investment suggestion: the company's preliminary accounting performance is in line with expectations, and we are optimistic about the in-depth layout of 365th net in the real estate post-service market and the company's long-term development prospects. In 2016-2017, the EPS is expected to be 1.0,1.50 yuan, and the corresponding PE is 29.4 and 19.6 times, respectively, maintaining the "overweight" rating.

Risk hint: the real estate industry transaction rebounded less than expected