In the first three quarters, the company achieved revenue of 8.764 billion yuan, a decrease of 23.63%, a net profit of 51 million yuan, and a decrease of 68.16% and 0.02 yuan. Considering the substantial delay in the start of the Northeast 2015 infrastructure investment project, we lowered the EPS in 2015-16 to 0.04,0.15 yuan (- 0.11,0.08 yuan). According to the comparable company valuation, we maintained the target price of 12.16 yuan and maintained the "overweight" rating.
The sharp decline in infrastructure and real estate in Northeast China is a drag on performance: affected by the delay in the start of the project, the completion of fixed asset investment in Northeast China fell by 9.43% in the first three quarters compared with the same period last year, and the area of new real estate construction dropped by 24.33% compared with the same period last year. As a result, cement demand fell 21.33% in the first three quarters compared with the same period last year, setting a record. At the same time, shrinking sales led to a significant decline in prices. In the first three quarters, the average price of cement in Northeast China fell 72 yuan / ton compared with the same period last year. Reached 321 yuan / ton, affected by the company's cement plate business losses dragged down the overall performance.
Capital structure "deleveraging" progress: the company completed a fixed increase in May, and now the company has 8.9 billion yuan in cash on hand. We judge that the traditional business sectors such as cement and coal may be further adjusted in the future to achieve the adjustment of the asset structure with high debt burden accumulated by traditional industries, while the amount of cash on hand is expected to further increase and achieve strong support for the transformation.
Involved in Internet media, layout "Medicine and Health + Sports Media + Finance": on October 30, the company plans to invest 53.3 million yuan to set up Jilin Internet Media Co., Ltd., mainly engaged in e-commerce and new media services, taking the first step in the layout of transformation. We believe that the company will carry out layout mergers and acquisitions along the three directions of "Medicine and Health + Sports Media + Finance", and the future development is worth looking forward to.
Risk tips: macroeconomic risks, rising prices of raw materials.
