With the coordinated development of municipal and real estate gardens, the company's business undertaking capacity has been significantly enhanced after listing.
The company went public in September 16, and plans to expand into adjacent or similar areas of the garden industry with the help of capital markets on the basis of the coordinated development of municipal gardens and real estate gardens, such as ecological restoration, water environment governance and other major environmental protection, as well as large ecological areas. In terms of market development, the company is based on Central and East China, and actively expands to the northwest, southwest and Beijing-Tianjin-Hebei region. In addition, the company increases the development of PPP business. August 11 won the bid to build the third Bureau of Xi'an Huangpi Lake water system landscape greening construction subcontract project, winning the bid amount of 1.0625 billion, accounting for 279% of 16-year revenue. After the listing, the project undertaking capacity of the company has been significantly enhanced, the orders on hand are abundant, and the future performance is expected to be gradually released.
Municipal garden business has risen sharply and gross profit margin has declined.
In the first half of 17, the company had revenue of 203 million yuan, up 12.41 percent over the same period last year. Of this total, revenue from the real estate garden business was 99 million, down 4.60% from the same period last year, while revenue from the municipal garden business was 105 million, up 35.18% from the same period last year. The main reason is that the company takes the initiative to optimize the business structure and promote the undertaking of municipal garden business. We use the index of "gross profit margin-business tax and additional / sales income" to eliminate the change in accounting caliber brought about by "business change". Using this index, we calculate that the gross profit margin for 2016 is 26.22%, down 1.40 percentage points compared with last year. The main reason is that the gross profit margin of municipal garden business decreased by 2.52 percentage points.
During the period, the expense rate increased significantly, and the net profit returned to the mother declined.
The company's expense rate during the first half of 17 years was 10.09%, down 0.61 percentage points. Among them, the management expense rate was 10.78%, down 0.11%, and the financial expense rate was-0.69%, down 0.5%, mainly due to a substantial increase in interest income after 16 years of raising funds. The loss of asset impairment in the same period was 3.11 million, an increase of 430000 over the previous value. The company's net profit in the first half of 17 years was 26 million, an increase of 5.76%.
There is a big drop in cash payment, and the company has plenty of cash on hand.
In the first half of 17 years, the company's cash income was 0.7488, down 9.69 percent, and the payment-to-cash ratio was 0.7269, down 11.55 percent. The superimposed company obtained sufficient cash in the initial public offering. At present, the company has plenty of cash on hand, which strengthens the company's ability to advance capital in undertaking general contracting projects.
Investment suggestion
Based on the coordinated development of municipal and real estate gardens, the company plans to expand to adjacent or similar areas of the garden industry with the help of the capital market. After 16 years of listing, the company's ability to undertake projects and extension expansion has been significantly enhanced. At present, there are plenty of orders on hand, and the future performance is expected to be gradually released. For the first time, the company was given the rating of "increasing holdings". It is estimated that the EPS in 17-19 is 0.36,0.44,0.53 and PE is 48,39,32 times.
Risk Tip: the rebate of municipal projects is not up to expectations, and the growth rate of investment is accelerating down.