Main points of investment
The company released the third-quarter report of 2017: the company's operating income in the first three quarters of 2017 was 540 million yuan, an increase of 48.39% over the same period last year; the net profit attributed to shareholders of listed companies was 75.3633 million yuan, an increase of 66.58% over the same period last year, corresponding to EPS0.6893 yuan. In the third quarter, the operating income was 185 million yuan, an increase of 47.67% over the same period last year, and the net profit attributed to shareholders of listed companies was 21.7987 million yuan, an increase of 45.16% over the same period last year.
The growth rate of reported revenue will be maintained in the third quarter, and the high growth rate for the whole year is expected. The market share of custom furniture in China's furniture industry is about 20%, while the market share of developed countries has exceeded 60%. The market size of China's custom furniture industry in 2016 is about 70 billion yuan, and the growth rate of the custom furniture industry is expected to maintain more than 20% in the next four years. The company conforms to the new demand of furniture enterprises for flexible production of whole-house customized furniture, and the developed automatic production line is deeply recognized by the market. The huge demand makes the company's revenue grow rapidly and steadily. In the third quarter of 2017, the company achieved operating income of 185 million yuan, an increase of 47.67% over the same period last year, which is basically in line with the growth rate of the first half of the year.
The proposed stock is to pay cash to acquire the only network and build a data collection center. The company plans to issue shares to buy 100% equity of the only network held by Pingnan Weichuang and only one Investment, with a transaction consideration of 737 million yuan, of which 637 million yuan is paid for the issued shares, 31.87 yuan per share, and 100 million yuan in cash. And raise no more than 120 million yuan from no more than 10 objects, and constitute a major asset restructuring and related party transactions. With IDC as the core business of the only network, through this acquisition, the company will have the ability to build a data center, develop intelligent mechanical products through the layout of C2M channel cloud platform, and promote the company's business to extend into cloud computing, Internet of things, big data and other strategic emerging industries.
Profit forecast and rating: the company constantly adjusts its product structure, launches multi-model machining centers for customized furniture, and plans to acquire a unique network and layout C2M channel cloud platform to enhance its advantage in the field of intelligent manufacturing. It is estimated that the company's EPS will be 0.88 / 1.23 / 1.66 yuan respectively from 2017 to 2019, and the corresponding share price PE will be 48x/ 34x/ 25 x, maintaining the "overweight" rating.
Risk tips: new product market expansion is not as expected; the risk of real estate regulation and control.