Summary:
Event: the company released its three-quarter report on October 30. In the first three quarters, the company achieved operating income of 46.126 billion yuan, an increase of 41.17% over the same period last year; the net profit belonging to shareholders of listed companies was 2.604 billion yuan, an increase of 14.71% over the same period last year, achieving EPS 1.04 yuan. Of this total, the operating income in the third quarter was 16.66 billion yuan, an increase of 80.53% over the same period last year; the net profit belonging to shareholders of listed companies was 758 million yuan, up 68.70% from the same period last year.
Comments: in the second quarter of this year, the company announced that it intends to invest 300 million yuan in its own capital to invest in Ruican, and indirectly participate in the targeted capital increase of Evergrande Real Estate, which is expected to obtain about 0.13% of the equity after Evergrande's share expansion. According to the information currently published by the market, you can get an annual investment return of more than 8%.
Evergrande is a well-known enterprise in China's real estate industry, the company has obvious advantages in the integrated ceiling industry, and the deep cooperation between the two sides will help to consolidate and develop the company's sales channels and improve product popularity.
In 2016, the company completed its initial public offering after listing, raising 336 million yuan and investing in the construction of new production capacity to meet the current large market demand. At present, the new production capacity has been gradually put into operation, which can increase the product output of the company by about 70%. We expect that with the gradual release of new capacity, it will bring significant growth to the company's sales performance.
Profit forecast: we forecast that the EPS of the company from 2017 to 2019 will be 1.94,2.58 and 3.73 yuan respectively, and the corresponding dynamic price-to-earnings ratio will be 30.4,22.8 and 15.8 times respectively.
Risk tips: 1) market risk; 2) policy risk.
