According to the preliminary calculation of the company's financial department, it is expected that there will be a loss in the annual operating performance in 2015. the net profit attributed to the shareholders of the listed company is about-146.67 million yuan, and the net assets attributed to the shareholders of the listed company at the end of the period is about-27.02 million yuan. The fully diluted earnings per share is-0.50 yuan, which is lower than our expectation of-0.40 yuan. We lowered our target price to 19.30 yuan to maintain our buy rating.
Support the main points of rating
Due to the adverse effects of the sustained macro-economic downturn, sluggish household consumption, the impact of e-commerce and other new channels, coupled with the fierce competition in Shenyang retail market, the company's revenue growth rate dropped sharply, and the company lost about 146.67 million yuan in net profit in 2015. the company's retail business is facing greater difficulties, and the company has been restructured by assets in 2014. It sold its 99.94% stake in Liaoning Logistics Co., Ltd. and 100% stake in Shenyang Anli Real Estate Management Co., Ltd. to Shenzhen Maoye Shopping Mall Co., Ltd., which increased the company's profit by 306.97 million yuan in 2014. In early January 2016, the company acquired car-friendly networking and transformed the emerging business service industry. The company estimated a net profit of 118 million yuan in 2016, which will effectively reverse the company's persistent loss in performance. After the completion of the acquisition, the main business will change from the traditional commercial retail business to a new commercial service business that relies on vehicle mobile tools to provide institutional customers and end consumer services through the Internet function.
Main risks faced by rating
The performance of the new business is low.
Valuation
In the merger and acquisition of the car Internet company, the company has not made arrangements for the retail business, and does not rule out the possibility of purchasing retail-related assets of department stores in the next three years. In the future, the company's main business will change from traditional commercial retail business to a new commercial service business that relies on vehicle mobile tools to provide institutional customers and end consumer services through Internet functions. Assuming that the Rental car Network consolidates its statement in 2016 and the share capital issue is completed in 2016, we adjust our forecast for 2015 fully diluted earnings per share to-0.50 yuan (originally-0.40 yuan) and temporarily maintain the forecast for 2016-17 fully diluted earnings per share at 0.01 yuan and 0.252 yuan. After the release of the annual report, the target price will be lowered from 24.50 yuan to 19.30 yuan per share, maintaining the buying rating.