Peace viewpoint:
Benefiting from the merger of Shixuan Technology, the company's performance has improved significantly:
From January to September 2016, the company achieved an operating income of 231 million yuan, an increase of 57.34% over the same period last year, and a net profit of 56.83 million yuan, an increase of 80.33% over the same period last year. The main reason is that Shixuan Technology, a wholly-owned subsidiary, was newly merged during the reporting period, but not in the same period last year.
Epitaxial mergers and acquisitions, layout of medical and health business:
Since 2013, due to the layout of the medical and health field, the company has successively participated in holding Daqian Biology and Exxon Biology, and obtained 100% of Shixuan Technology shares in 2015 by issuing shares (the share price is 11.67 yuan per share) and paying cash. The three have a certain degree of cooperation. In 2015, the revenue of the medical and health business accounted for about 26%, and the gross profit margin was 61.45%. Considering the factor that Shixuan Technology was incorporated into the consolidated statement in 2016, the medical and health sector will become the main performance growth point of the company in the future.
In addition, in this acquisition of Shixuan Technology, Xu Fuxuan and Fuduo promised that the net profit from 2015 to 2017 would not be less than 46.875 million yuan, 58.594 million yuan and 73.242 million yuan, and made special regulations on the lock of consideration shares subscribed by the two people on a regular basis. It can be seen that the company's shareholders' confidence in the future development of Shixuan technology.
Evergrande Life's shareholding ratio is about 4.95, approaching the licensing line:
According to the company's quarterly report data, Evergrande Life Insurance Co., Ltd.-traditional combination An and Evergrande Life Insurance Co., Ltd.-Universal combination B respectively entered the list of the company's top 10 tradable shareholders, with a combined shareholding of 23.81 million shares, accounting for about 4.95% of the company's total share capital, approaching the licensing line.
Investment advice:
The company has formed a business structure for the simultaneous development of smart grid and health care, and its ability to resist market risks has been effectively improved, providing the company with a sound and reliable performance guarantee. We predict that the EPS in 2016, 2017 and 2018 will be 0.25,0.34,0.43 yuan respectively, and the corresponding PE will be 62.3,45.5,36.0 times respectively. At the same time, the company does not rule out further mergers and acquisitions in the field of health care in the future to maintain the "recommended" rating.
Risk Tips:
The risk of securities market fluctuation, the risk of power grid policy change, the risk of new industry integration, the policy risk of medical and health industry, and the risk that Shixuan science and technology performance commitment is not up to expectation.