Events. The company publishes its semi-annual report for 2015. During the reporting period, the company realized operating income of 505 million yuan, an increase of 30.6% over the same period last year; net profit belonging to shareholders of listed companies was 30.9 million yuan, an increase of 2.72% over the same period last year; and basic earnings per share was 0.04 yuan.
In the first half of 2015, the company's new agricultural business increased the company's revenue by 30.6%, while the decrease in non-operating income narrowed the growth of the company's net profit to 2.7%. In the first half of the year, the forest enterprises under the company actively strive for various financial and tax subsidies; the production and sales of concrete enterprises are booming, and the number of orders increases steadily; the first phase of Zhongfu Strait Building Materials City is under final construction and has started a pre-sale; the civil construction part of the Jinjingwan sewage treatment plant (phase I) project has been completed and is now in the stage of equipment installation. In the first half of the year, the company added new agricultural material trade and circulation business, which mainly sold tobacco and chemical fertilizer to local tobacco companies. during the reporting period, the sales revenue of this business was 160.6306 million yuan, accounting for 32.37% of the main business income. In the first half of the year, the company's Zhongfu pawn revenue was 1.4641 million yuan, down 65.15% from the same period last year. In the first half of the year, the company's landed projects in Pingtan were carried out in an orderly manner, among which the company won the bid for two sewage treatment BOT projects, Jinjingwan and the eastern reclaimed water plant, and signed a new cooperation framework agreement with the management committee, which will participate in the development of Pingtan tourism, logistics and e-commerce projects in the future.
In January 2015, the company obtained two commercial plots in Pingtan Comprehensive Experimental Zone. In April 2015, the company signed a framework agreement with Yixiang Communications on the establishment of a high-tech company to build Pingtan offshore data center and optical fiber network project. In April 2015, the company reached a cooperation intention with Taiwan Zhongzhen on the operation and construction of Fuzhou Sanjiangkou Hospital (tentative name) in Mawei Free Trade Zone. In June 2015, four subsidiaries of the hospital project raised by the company were registered and established. In June 2015, the company signed the "Scientific Research Cooperation Framework Agreement between Colleges and Enterprises" on the scientific research project "breeding and industrialization of Taxus chinensis var. mairei germplasm".
Investment advice: increase the amount of funds raised to promote the transformation of the company's business strategy and maintain the "overweight" rating. The completion of the additional investment project will improve the company's tourism development and medical service capacity, and lay the foundation for the company's strategic transformation. The company has formed a development pattern of "forest-board integration". At present, it has a forest area of 1 million mu, an annual output of 15 million pine seedlings and an annual fiberboard production capacity of 450000 cubic meters. The company's projects in Pingtan are promoted in an orderly manner, and the benefits are initially reflected. Among them, Zhongfu Building Materials City in the second half of the year pre-sale; concrete project has been put into production and sale; Pingtan Zhonghui small loan company has shown benefits; the company won the bid for Jinjingwan, eastern sewage treatment plant BT project. It is estimated that the company's EPS in 2015 and 2015 will be 0.27 yuan and 0.55 yuan respectively. As of August 31, the company closed at 15.15 yuan, with a corresponding dynamic price-to-earnings ratio of 56.1 times and 27.5 times respectively. Considering that the company's performance in 2016 will not be released, and considering that the company is a listed company registered and directly benefiting from Pingtan Experimental Zone, with reference to the 2016 average PE valuation of the direct beneficiary target of Shanghai Free Trade Zone, we can know that the company has a reasonable valuation of 19.25 yuan and maintains the "overweight" rating.
Risk hint: the industry faces two major risks: interest rate hike and policy regulation.