The income in 2016 was 2.314 billion yuan, + 22.61% compared with the same period last year, and the net profit was 16.3161 million yuan,-89.06% year on year.
Black Sesame released its annual report and quarterly report on April 18, 2017. the company achieved an income of 2.314 billion yuan in 2016, an increase of 22.61% over the same period last year, a net profit of 16.3161 million yuan, a decrease of 89.06% over the same period last year, and a net profit of 27.9859 million yuan, down 81.91% from the same period last year. Lower than we expected.
17Q1 achieved revenue of 469 million yuan, an increase of 7.13% over the same period last year, a net profit of 23.4676 million yuan, an increase of 4.98% over the same period last year, and a non-return net profit of 21.6258 million yuan, an increase of 36.65% over the same period last year.
Revenue side: the logistics industry is the most important force driving the company's 16-year revenue growth.
The income of the black sesame food industry in 2016 was 1.478 billion yuan, an increase of 7.42% over the same period last year, while the income of the logistics industry was 809 million yuan, an increase of 63.32% over the same period last year, which is the most important force driving the company's revenue growth. Guangxi Rongzhou Logistics Industry Park, which was successfully acquired in May 2015, contributed most of the income increment of the logistics industry. In 2016, the annual income contribution of the logistics industry park was 277 million yuan, accounting for 34% of the logistics industry income, and the net profit contribution was 29.0217 million yuan.
Profit side: a decline in net profit due to a decline in gross profit margin, asset impairment losses and rising financial expenses
The sharp decline in net profit was mainly due to a decline in gross margin from less-than-expected customized products, year-on-year increase in asset impairment losses and significant increases in financial expenses. Company 15Q4 synchronized Zhejiang Satellite TV's "Journey to the West" column customized commemorative edition products in 16Q4 and inventory pressure, the company put resources to digest the inventory, resulting in a substantial decline in gross profit margin from 30.57% in 3 quarterly reports to 23.33% in annual reports, with an impact range of 75 million yuan; secondly, asset impairment losses increased significantly compared with the same period last year, with an impact range of 56 million yuan Thirdly, due to the substantial increase in raw material collection, storage and sales in the selenium-rich food sector over the past 16 years, the increased demand for liquidity has led to an increase in bank loans, with an impact range of 35 million yuan.
Purchase 100% stake in Lido by issuing shares and paying cash for assets
Black Sesame announced on March 25, 2017 that the company intends to purchase 100% of Lido shares by issuing shares and paying cash to purchase assets. Lido shares have been listed and publicly transferred in the national share transfer system for small and medium-sized enterprises. The securities code is 833690, and the total shares as of the date of signing the agreement is 79.94 million shares, of which Guangxi Black five Food Group, the controlling shareholder of Black Sesame, holds 19.23% of the shares. Is the second shareholder of Lido. Mr. Liu Shihong holds a 41.47% stake in Lido and is the controlling shareholder of Lido. The evaluation base date for this transaction is December 31, 2016, with terms of performance compensation and performance rewards attached to the transaction.
After 17 years, the main business is back on track, and the acquisition of Lido increases the flexibility and maintains the "buy" rating.
We believe that the one-off negative impact of the depressed sales of customized products on the company will gradually fade, and the main food industry will return to normal in 2017. At the same time, the acquisition of Liduoduo is expected to bring channel coordination and greater flexibility to the company's performance. Ignoring mergers and acquisitions for the time being and maintaining the previous profit forecast, it is estimated that the income of black sesame from 2017 to 2019 will reach 2.931 billion yuan, 3.43 billion yuan and 3.864 billion yuan respectively, and the EPS will reach 0.32 yuan, 0.38 yuan and 0.41 yuan respectively.
Risk tips: the promotion of new products is not as expected; food safety issues; the acquisition of 100% stake in Lido is not as expected.