The performance remains profitable and the investment income contributes to the core profit.
On January 25, the company issued a performance forecast for 2016, saying that it will achieve a net profit of 90-13 million yuan for the whole year, a year-on-year change of-20% to 20% EPS0.034-0.055 yuan. The company will remain profitable during the reporting period, mainly due to an increase in investment income over the same period last year and a decrease in compensation for demolition income over the same period last year.
The existing business is gradually improving and actively exploring a new mode of management and control.
At present, the company's business includes travel agencies and hotels. In terms of hotels, the operation of New Guanghua Hotel and Northwest Hotel has improved and is expected to break even for the whole year; as for travel agencies, the company is actively exploring a new mode of travel agency management and control in 2016. in cooperation with donkey mother, it is expected to introduce donkey mother's online and offline management experience into travel agencies to improve existing growth bottlenecks.
Actively layout leisure tourism and extend the company's industrial chain.
During the reporting period, the OUTLETS project of 68000 square meters of commerce + real estate + tourism complex capped, is currently in the stage of investment planning, is expected to recognize revenue in 2017, is expected to become the main driving force of future performance growth.
Extension expansion is still the main focus of the company.
Although the restructuring with Sanren Bank failed before, the extension expansion is still the company's long-term development strategy, and expectations still exist. We believe that the company is still in the process of exploring the next round of restructuring and does not rule out further expanding and strengthening by means of capital operation.
Maintain the "overweight" rating.
The company's existing business growth is weak, and the performance growth is mainly brought about by investment income. We believe that the company's frequent financial management and investment actions are to buy time for exploring new directions in the main business. At present, the market capitalization of the company is only 3.3 billion, and the expectation of extension expansion is still strong. We do not rule out further expanding and strengthening by means of capital operation, and the future transformation direction is still the focus of attention in the future. It is estimated that in 16-18, the EPS of the company will be 0. 05 to 0.07, and the corresponding PE will be 283x/129x/79x, maintaining the "overweight" rating.
Risk hint: transformation is not as expected and existing business improvement is not as expected