Results in the first three quarters of 2018 were lower than expected.
Dashi Intelligence announced its results for the third quarter of 2018: the operating income in the first three quarters was 1.79 billion yuan, down 0.6% from the same period last year; the net profit from home was 160 million yuan, down 24.9% from the same period last year, corresponding to EPS 0.08 yuan; of which the income in the third quarter was 740 million yuan, up 15.8% from the same period last year; the net profit from home was 59.172 million yuan, down 43.0% from the same period last year The performance was lower than we expected due to the pressure of gross profit margin, the increase in bad debts and the loss of one-time investment. The company expects the 2018 full-year net profit to be 2.4-360 million yuan, a year-on-year growth rate of-25-15%.
In the third quarter of 2018, the company's gross profit margin decreased by 6.6ppt to 30.2% compared with the same period last year; the rate of management expenses increased by 1.4 ppt; the asset impairment loss increased by 13.79 million yuan compared with the same period last year, mainly due to the increase in the amount of bad debts due to the increase in receivables; the investment income decreased by 18.48 million yuan compared with the same period last year, mainly due to the loss of 18.23 million yuan from the disposal of Dashi Lianxin; in the third quarter, the company's overall net profit rate was 8.0%, which decreased 8.2ppt.
In the first three quarters, the net operating cash outflow of the company increased by 260 million yuan to 360 million yuan compared with the same period last year, mainly due to the increase in receivables; the net cash outflow from investment increased by 530 million yuan to 560 million yuan compared with the same period last year, mainly due to the decrease in income from bank wealth management products and the increase in cash payments for the reconstruction and expansion project of Dashi Building.
Trend of development
The loss of one-time investment is a drag on 3Q's performance. In the third quarter, the company incurred an one-time investment loss of 18.23 million yuan due to the disposal of Dashi Lianxin. Excluding the one-time loss, the cumulative net profit in the first three quarters and the year-on-year growth rate of net profit in the third quarter increased by 8.8ppt, 17.6ppt to-16.1% and-25.5% respectively.
Asset securitization business contributes to the improvement of cash flow and net profit. At the same time, the company announced that it intends to carry out accounts receivable asset securitization business, with a financing scale of no more than 300 million yuan, accounting for 13.4% of the balance of accounts receivable at the end of the third quarter. The deal is expected to help the company invigorate its assets and is expected to improve profit growth by reducing the provision of bad debts while improving cash flow.
Profit forecast
Keep the net profit forecast of 2018Accord 19e homing home unchanged at RMB 32,000,000.
Valuation and suggestion
The company's current price corresponds to 21Universe 16 times 2018Universe 19e PUnix E. Maintain the "recommended" rating and the target price of 4.5 yuan, corresponding to 27 Universe, 20 times 2018 Universe 19e Pcyc E, which has 26% upside space compared to the current price.
Risk
Gross profit margin continues to be under pressure.
