The growth of traditional business is weak, the results of the three quarters have bottomed out, and the asset structure is excellent.
The company reported revenue of 119 million yuan (YOY-46.5%) and net profit of 1.13 million after deducting non-profit (YOY-82.61%). Although the growth of the company's traditional business is weak, the company's asset-liability ratio has declined year after year, and the three-quarter report shows that the company's asset-liability ratio is only 16.87%. The debt risk of the traditional business is low, and it leaves a large room for financial leverage for the new business.
Rely on large groups to make strategic transformation of listed companies.
Langsha Group, founded in 1995, has more than ten branches and five overseas trading companies, such as Langsha Knitting, Lan Feng socks, Hongguang Knitting, Liv Textile, Langsha Micro-loan Company, Langsha Real Estate, Anhang Photovoltaic, Lanye Optoelectronics and other overseas trading companies. Langsha has developed into a diversified industrial group integrating socks, clothing, home, finance and other industries, and is one of the largest brand manufacturers in the industry.
Joint venture with a professional third party to establish a subsidiary to transform the Internet culture industry.
For the strategic transformation, the company plans to invest 4 million in the field of Internet culture industry, accounting for 40% of the total investment with third-party professional institutions to set up a limited liability company. The name of the company is tentatively designated as Langsha Culture Co., Ltd. Registered capital is 10 million.
Profit forecast & investment advice. Profits in traditional businesses have bottomed out. The new company does not consider revenue and profit for the time being. Traditional business profits of 2015-2017 are negligible. As a result, the new business can be very flexible in terms of profit and valuation. Give an overweight rating.
Risk hint. Profits of traditional businesses have declined and new investment projects have fallen short of expectations.