Events:
In the first three quarters of 2019, the company achieved operating income of 656 million yuan, down 11.32% from the same period last year; net profit belonging to shareholders of listed companies was 32.7066 million yuan, down 26.24% from the same period last year, and basic earnings per share was 0.0388 yuan, down 26.24% from the same period last year.
Main points of investment:
Sports real estate business and event revenue confirmed to have declined, the fourth quarter is relatively sound in the first three quarters of the company's performance decline is mainly due to the sports real estate business and event business recognized revenue decreased compared with the same period last year. During the reporting period, the company's main sports real estate project, Ningbo Zhongtian SPORT City, officially opened in June, resulting in a decline in sports real estate business revenue compared with the same period last year. At the same time, the Beijing Marathon, which accounts for a relatively high proportion of income, started on November 3, which was delayed from September 16 last year, resulting in a year-on-year decline in revenue in the first three quarters of this year. Therefore, on the whole, there should be a relative growth in the company's revenue in the fourth quarter, and the holding of Beima will maintain a relatively stable level of annual performance.
The key point in the future is that the reorganization continues to move forward.
At present, the biggest focus of the company is to continue to promote the acquisition of shares in four companies in the field of sports lottery service, sports standard service and certification testing. We believe that on the one hand, the company's move will improve the company's business territory and achieve the company's strategic goal as a benchmark company in the domestic sports industry; on the other hand, it also shows the determination and confidence of the management of the company to start a business. It is the core logic that we are optimistic about the company's medium-and long-term development, and if the acquisition is completed, it will further smooth the stability of the company's performance.
Investment rating and profit forecast
We believe that the company's resource advantages in sports event operation, market development, sports complex development and operation are in a continuous release cycle, and benefit from the intensive holding of competitions in the next three years in the medium term to obtain performance support. We continue to give the company an investment rating of "overweight". It is estimated that the company's EPS will be 0.14,0.20 and 0.26 yuan per share respectively from 2019 to 2021.
Risk hint
Industrial policy risks, business development is not up to expectations, major changes have taken place in operation, and the real estate industry remains in the doldrums.
