Items:
The company released its third-quarter report: revenue in the first three quarters was 1.514 billion yuan, up 10.73% over the same period last year; net profit from home was 145 million yuan, up 11.18% from the same period last year; and net profit from non-return was 140 million yuan, up 7.11% from the same period last year. EPS is 0.22 yuan.
Q3 achieved revenue of 498 million yuan in a single quarter, an increase of-3.66% over the same period last year, a net profit of 49.52 million yuan, an increase of 5.27%, and a non-return net profit of 48.41 million yuan, an increase of 2.36% over the same period last year. The EPS is 0.07 yuan.
Peace viewpoint:
Third-quarter performance fluctuations, high annual growth is determined: due to the uncertainty of the company's project schedule, revenue recognition may have seasonal fluctuations. The company's Q3 realized revenue of 498 million yuan, down 3.66% from the same period last year, resulting in a decline in performance growth in the first three quarters compared with the first half of the year. However, considering that the company's Q4 homing net profit last year was-16.1 million yuan, this year will usher in high growth for certainty. The company expects to achieve a full-year net profit of 160 million-194 million yuan, an increase of 40% over the same period last year.
There are plenty of orders on hand, and the future performance is guaranteed: the company continues to expand its medical service resources through PPP and buyer's credit. As of September 30, 2017, the company has 18 orders on hand, totaling 6.472 billion yuan. At the same time, the relocation project of 250 million yuan of traditional Chinese medicine hospital in Meixian County has won the bid, the projects of Yinjiang, Suiyang, Xiayi and Jiaxiang are actively following up, and the two big orders of Lanzhou New area and Shangqiu City are discussing the details of cooperation. At present, the amount of the project in each stage of the agreement, winning the bid and the contract is as high as 13.722 billion yuan, which does not include the PPP project. The company's future performance growth is strong.
The non-public offering is just around the corner, and the medical service platform has taken shape: the company received approval for the non-public offering on July 20, 2017, and the non-public offering is just around the corner. This additional offering intends to raise no more than 840 million yuan for the hospital operation department, ICU product industrialization project and increase the overall hospital construction business funds, which will further promote the development of the company's medical construction core business; the company has acquired shares in Jinzhou Medical, Poulder and Taiwan Kangyuan, and the product line has been continuously enriched. At the same time, in order to implement the PPP hospital investment project, subsidiary Shangrong invested 26.8 million yuan and 167 million yuan respectively to set up Minsheng Shangrong Fund and Beiyin Shangrong Fund. At present, the company's medical service platform has been initially completed, and we are optimistic about the coordinated development of the various businesses under the company.
Maintain the "recommended" rating: we are optimistic about the future performance growth supported by a large number of medical construction orders and the coordination of various businesses on the medical service platform. According to the company's annual results forecast, we will adjust the company's EPS from 0.20,0.23,0.28 yuan to 0.26,0.30,0.37 yuan in 2017-2019, maintaining the "recommended" rating.
Risk hint: the progress of medical construction projects is not as expected, and the epitaxial mergers and acquisitions are not as expected.
