This report is read as follows:
Net interest rate significantly increased superimposed income growth led to high performance, the company actively promoted epitaxial mergers and acquisitions to enhance the capacity of upstream design and the whole industry chain, fully benefited from the accelerated release of domestic seawall construction market demand, the company's performance prospects are worth looking forward to.
Main points of investment:
Maintain and increase holdings. The income from January to September in 2017 is 1.666 billion (+ 25%) and the net profit is 63 million (+ 123%), which is in line with expectations. Considering the acquisition and thickening performance of Millennium Design next year, it is estimated that the 18-year EPS in 2017 will be 0.17 shock 0.36 yuan (formerly 0.17 shock 0.25 yuan), with a growth rate of 93pm 111%. Considering the company's high performance sustainability and the increase in the valuation of entertainment business, the target price will be maintained at 12.12 yuan (26% space), and the target price for 2017 18 will be 71Universe 34 times. Increase your holdings.
The increase in net interest rate has led to a substantial increase in performance, and cash flow has improved significantly and is expected to continue. 1) the company's net profit increased by 37 million compared with the same period last year, of which the revenue growth contributed 7 million and the net interest rate increased by 30 million; 2) the Q1~Q3 homed net profit-0.01G 0.24max 40m, the growth rate-133% Universe 149% Citrus 175% X 3) Gross profit margin 12.57% (+ 1.18pct), net profit rate 3.77% (+ 1.79pct), three-item fee rate 7.62% (+ 0.25pct) 4) the operating net cash flow is 9 million (+ 106.63%), we judge that it is mainly caused by the refund of the stock BT project; 5) the asset impairment loss is 5 million (- 28.6%), and accounts receivable accounts for 12.27% of the total assets (- 4.74pct).
Epitaxial mergers and acquisitions strengthen the capacity of the whole industry chain and fully benefit from the release of demand in the domestic seawall construction market, and the company's performance growth prospects are worth looking forward to. 1) on October 23, the company's purchase of additional assets was formally accepted by the CSRC. It is proposed to issue 102 million additional shares to Millennium Design shareholders at a price of 8.62 yuan per share and pay 548 million yuan in cash to acquire 88.23% of its shares, which will strengthen the company's upstream design capacity and order expansion ability. and thicken the performance (the bet performance in 2017-2019 is 0.96 plus 1.6 million). 2) the "National seawall Construction Plan" (issued by the National Development and Reform Commission and the Ministry of Water Resources in August 2017) proposes to strive for the length of the seawall to reach 15000 km in the next 10 years, and the rate of reaching the standard of the built seawall will be raised to 57.1%. The company will fully benefit; 3) the entertainment sector will gradually reflect profits, and the 5%-shareholding film "Blood of the Machine" will be released at the end of the year.
Catalyst: the smooth passing of the fixed increase event, the introduction of the national seawall construction increment policy and so on.
Risk tips: fixed increase is not as expected, project expansion and landing is not as expected, accounts receivable and so on.