Main points of investment
In the first three quarters of 2017, the company achieved operating income of 535 million yuan, an increase of 13.11% over the same period last year, of which Q3 realized revenue of 249 million yuan, an increase of 33.04% over the same period last year. Q1, Q2 and Q3 realized operating income of 205 million yuan, 181 million yuan and 149 million yuan respectively, up 332.78%,-42.31% and 33.38% respectively over the same period last year. The decline in Q2 income was mainly due to the high base in the same period last year; the parent company and subsidiary companies achieved income of 470 million yuan and 65 million yuan respectively, an increase of 5.38% and 140.74% respectively, and the income of subsidiaries increased explosively.
The company achieved a comprehensive gross profit margin of 30.25% in the first three quarters of 2017, an increase of 2.84% over the same period last year. Q1, Q2 and Q3 gross profit margin increased by 12.22%, 5.10% and-0.90% respectively compared with the same period last year, while Q1 gross profit margin increased significantly, while Q3 gross profit margin decreased. The parent company's gross profit margin increased by 29.05%, an increase of nearly 2.70% over the same period last year. The subsidiary's comprehensive gross profit margin was 40.00%, which was 8.15% lower than that of the same period last year (48.15%).
The company achieved a net interest rate of 9.28% in the first three quarters of 2017, up 2.8% from the same period last year. The net interest rates of Q1, Q2 and Q3 increased by 84.10%,-9.99% and 2.67% respectively compared with the same period last year, mainly due to a 3.2% year-on-year decline in asset impairment losses in the current quarter. The net profit of homing was 50 million yuan, an increase of 62.00% over the same period last year. Q2's net profit dropped sharply, and the sharp increase in Q3 was mainly due to a low base in the same period last year.
The proportion of expenses during the first three quarters of the company was 16.56%, an increase of 0.34% over the same period last year. In the first three quarters, the rate of management expenses increased by 1.81% compared with the same period last year, mainly due to an increase of 35.69% in managers' salaries, 0.05% in sales expenses, and 1.52% in financial expenses compared with the same period last year. This is mainly due to the increase in interest income caused by a sharp increase in hand cash.
The proportion of the company's asset impairment loss in the first three quarters of 2017 was 1.51%, a decrease of 1.48% compared with the same period last year, mainly due to the decrease in asset impairment loss due to the decrease in accounts receivable; the net operating cash flow per share was-1.17 yuan, a decrease of 1.47 yuan per share compared with the same period last year, mainly due to the increase in procurement payments to suppliers.
Earnings forecast and rating: the company's EPS from 2017 to 2019 is expected to be 0.96,1.35,1.78 yuan respectively, and the corresponding PE is 32.9,23.4,17.7 times.
Risk tips: macroeconomic downturn, new business expansion is not up to expectations, PPP orders are not as expected.
