Adopt differentiation competition strategy to seek new profit points such as greenhouse landscape
The greenhouse landscape project is a boutique theme exhibition activity that integrates sightseeing, catering, shopping and popular science education. this business starts relatively late in China and has great potential for future development; compared with the cost of less than 1000 yuan per square meter for real estate and municipal government, the greenhouse landscape cost is 7000-8000 yuan per square meter, and there is a large profit space. Through a series of well-known projects, such as the Beijing Expo kaleidoscope project greenhouse landscape project, Xuzhou Botanical Garden greenhouse Ecology and Nature Pavilion and other well-known projects, the company adopts differential competition strategy to pay close attention to this emerging business of the garden industry through a series of well-known projects, such as Beijing Expo kaleidoscope project, greenhouse Ecology and Nature Pavilion of Xuzhou Botanical Garden, accumulate core technology and enhance construction capacity, in order to form technical barriers, occupy and consolidate this market segment.
Strategic inclination to forest +, project landing operation or increase revenue
In recent years, with the increase of the policy, the forest rehabilitation business has developed rapidly, and the scale is expected to exceed 1.3 trillion in 2019.
The company ploughs the garden industry, has rich experience in forest development, greenhouse construction, botanical garden and wetland park design, the transformation forest rehabilitation project has the technical foundation, and the company's financial condition is excellent, and the project landing is guaranteed. At present, Fujian Yongtai and Sichuan Xingwen projects are progressing smoothly, and the 2C-end operation model will bring continuous cash flow to the company in the future; and in the project, the company cooperates with educational institutions and giant panda breeding centers to combine forest rehabilitation and forest education, be creative, and may benefit from future revenue.
Revenue two-wheel drive, Beijing area makes great contribution to revenue, and the project returns well.
The company focuses on municipal greening and real estate landscape, and has formed a whole industry chain business model of integrated management of scientific and technological research and development, seedling planting and maintenance, landscape design and engineering construction. From a regional point of view, the company's revenue in North China was the highest in 2018, reaching 142 million yuan, accounting for 40.16% of the revenue in the same period. North China's revenue mainly comes from the business in Beijing, such as the third section of the public greening project of Beijing Expo Park, the greenhouse landscape project of Beijing Expo kaleidoscope project, and so on.
The asset-liability ratio is relatively low in the industry, and it will be young in 2019.
The company is actively developing new cooperative banks, and the asset-liability ratio fell to 42.66% in 2018, down 0.9 percentage points from the same period last year, which is at a low level in the industry. 2019Q1's asset-liability ratio has dropped by 0.02% again, and the company's successful asset-liability ratio will drop to 33.04%. There is room for leverage in the future, and the ability to expand will be further strengthened, which is conducive to the company's operation and strategic transformation. In addition, compared with companies in the same industry, the company has no pressure on bond repayment in 2019. Due to the large asset losses in 2018, the company's net profit fell sharply by 106.97%, but at the same time, the company needs to reduce or even turn back the asset impairment loss in the future, it can be seen that the company will be young in 2019, and the net interest rate is expected to increase.
Investment suggestion
The company has relatively high order income and good revenue support in the future; on the basis of two-wheel drive of municipal and real estate gardens, the company continues to develop businesses such as greenhouse landscape and forest rehabilitation; and the asset-liability ratio is low in companies in the same industry. less financial pressure, is expected to take the lead out of the haze of the industry. To sum up, we predict that the EPS from 2019 to 2021 will be 0.20,0.24,0.30 yuan per share. The corresponding PE is 21,17,14 times respectively, giving the company an "overweight" rating, with a target price of 6.40 yuan.
Risk tips: increased inter-industry competition, industry payback risk, project promotion is not as expected, asset impairment risk, profitability improvement is not as expected