Newly signed orders increased significantly, and PPP became the main force of performance growth.
In 2016, the company announced that the total amount of newly signed contract orders was 15.586 billion yuan, an increase of 270.04% over the same period last year, of which PPP project orders totaled 14.871 billion yuan, accounting for 95.41% of the total newly signed contract orders.
Revenue has increased significantly, and gross profit margin has increased steadily.
In 16 years, the company achieved a total operating income of 2.192 billion yuan, an increase of 15.59% over 2015; in terms of industry, revenue from construction reached 2.161 billion yuan, an increase of 17.20% over the same period last year; and in terms of products, the business income of seawall construction was 1.582 billion yuan, an increase of 35.21% over the same period last year. In 2017, the company is committed to creating the three major plates of "investment, construction and cultural creation", making the first main business bigger and stronger, accelerating the development and layout of the second main industry, and further upgrading the transformation of the company.
We use the index of "gross profit margin-business tax and additional / sales income" to eliminate "revenue change".
With regard to the change in accounting caliber, it is calculated that the gross profit margin for 2016 is 12.39%, an increase of 0.06 percentage points over the same period last year, which remains basically unchanged.
During the period, the expense rate decreased slightly, and the net cash flow of operating activities
The expense rate during the period was 6.37%, a decrease of 1.76% compared with last year, of which the financial expense rate was 2.51%, a decrease of 1.03% over the same period last year, mainly due to the increase in interest income and the decrease in handling fees due to the gradual repayment of the company's BT project. The rate of management expenses was 3.86%, a decrease of 0.73% over the same period last year, mainly due to the fact that the company listed various taxes and fees separately from management fees to taxes and additional items after May 2016.
In 2016, the company's cash-to-income ratio was 0.53, down 5.05 percent from the same period last year; the cash-to-cash ratio was 0.51, down 9.43 percent from the same period last year; overall, the net cash flow generated by the company's operating activities in the same year was 34 million yuan, down 63.99 percent from the same year last year.
The potential of film, television and games is gradually showing, accelerating the layout of the secondary industry to help the growth of performance at the end of 2016, the company invested in the establishment of Beijing Orange Lexin Entertainment Media Company, which is expected to be released in 2017 to jointly invest in the film "Blood of the Machine". Rely on Lezhuo platform to enter mobile games In the same year, the company has participated in the production of well-known film and television special effects, such as "wreaking havoc in Heaven", "the Ancient City of Ghost blowing Lanterns", "the Story of Heaven" and other well-known film and television special effects. In 2017, the company participated in the Millennium Design, focusing on improving professional services in the key links of the industrialization of the entertainment industry, achieving differentiation competition, and the company's second main business profit contribution is expected to continue to increase in 2017.
Investment suggestion
The company ploughs the main business, the seawall project has outstanding advantages, and at the same time actively expand PPP to develop its performance; in 2017, the company successfully raised 2.47 billion yuan, which provided a guarantee for the company's acquisition. The current stock price is close to the company's IPO price and shareholder holding price, and there is a certain margin of safety. To sum up, the business performance of the company continues to improve, and we expect EPS to be 0.19,0.25,0.32 yuan per share in 2017-2019. The corresponding PE is 52,40,31 times. Cover for the first time, giving a "buy" rating to the company.
Risk hint: the promotion of the PPP project is not as expected; the second business is not as expected.