Main points of investment
The company's monthly operating income from January to June 2017 was 90.0244 million yuan, down 51.81% from the same period last year; the net profit was 16.3596 million yuan, down 44.28% from the same period last year. The main reason is that the slow implementation progress of the general contracting project of the PMB project of Zhejiang Hengyi Group led to a significant decrease in the total contract income in this period compared with the same period last year. (1) from the perspective of business, the revenue of the company's engineering general contracting business in the first half of the year was 59.4194 million yuan, down 60.99% from the same period last year; and the revenue from the engineering design business was 20.3573 million yuan, an increase of 1.43% over the same period last year. (2) from a quarterly point of view, the company's Q1 and Q2 achieved operating income of 44.2543 million yuan and 45.7701 million yuan respectively, down 46.55% and 55.93% respectively compared with the same period last year.
The company achieved a comprehensive gross profit margin of 27.76% in the first half of 2017, an increase of 3.95% over the same period last year. According to the sub-business structure, the gross profit margin of the company's project general contracting business in the first half of the year was 17.57%, down 3.75% from the same period last year; and the gross profit margin of the engineering design business was 50.49%, an increase of 9.77% over the same period last year.
The company achieved a net profit rate of 18.17% in the first half of 2017, down 1.65% from the same period last year. The increase in gross profit margin and the decline in net profit margin were mainly due to the sharp increase in the rate of sales expenses and management expenses. The proportion of expenses during the first half of the year was 17.16%, up 8.92% from 8.24% in the same period last year.
The company's asset impairment loss accounted for-0.05% in the first half of 2017, down 1.35% from the same period last year. It is mainly due to the sharp decline in the loss of bad debts withdrawn by the company in the current period compared with the same period last year. The net operating cash flow per share was 0.12 yuan, an increase of 1.44 yuan over the same period last year, which was an improvement over the same period last year, mainly due to a substantial increase in the cash-to-income ratio.
Profit forecast and rating: the company's EPS from 2017 to 2019 is expected to be 0.50,0.56,0.58 yuan respectively, and the corresponding PE is 45.0,40.3,39.2 times, maintaining the company's "neutral" rating.
Risk hint: the risk that the macroeconomic situation affects the construction demand of downstream industries, the promotion of key projects falls short of expectations, and the business performance fluctuates greatly.