Events:
The company released its three-quarter report on October 27th that its operating income in the first three quarters was 2.056 billion yuan, an increase of 11.84% over the same period last year. The net profit attributed to the owner of the parent company was 70.78 million yuan, down 7.03% from the same period last year. However, the company achieved a net profit of 32.31 million yuan in the third quarter, an increase of 14.32% over the same period last year, and 49.74% after deducting non-profit.
Main points:
1. The performance of the whole year is growing steadily, and the twin engines continue to work.
The company expects that the net profit belonging to shareholders of listed companies will increase by 18.22% to 35.11% in 2016, and the net profit belonging to shareholders of listed companies will vary between 14000 and 160 million yuan, which is slightly lower than our previous expectation. We expect that as the Baotou base has not fully reached the break-even point, Longmai Clean is due to the late confirmation of the performance due to the seasonal reasons of the project settlement. However, there is no doubt that the company's aluminum processing business is in a reversal period, with a reasonable layout and strong execution, and we still have strong confidence in the company's performance growth next year and the year after next.
two。 The transformation direction is clear and the layout is reasonable.
Since 2014, the company has formulated a clear direction for the transformation of great health, and frequently stepped in to find a suitable target. In 2014, it acquired Shanghai Langmai and Sichuan Chenxi and took a stake in Suzhou Youshi in the same year. These high-quality target choices show that the management of the company has a deep understanding of the big health field and high-quality implementation ability. The company announced on September 8, 2016 that trading was suspended on September 9 because it was planning to issue shares and pay cash to buy assets. The restructuring will further improve the layout of the company's big health area.
Conclusion:
Downgrade the company's 2016 earnings forecast and maintain a highly recommended rating. We estimate that the company's EPS from 2016 to 2018 will be 0.22 yuan (formerly 0.26) / 0.33 PE 0.42 yuan, corresponding to 47 times 2016. After the establishment of the "aluminum processing" + "big health" development strategy, the company has implemented a series of mergers and acquisitions and related business layout, reflecting a strong willingness to transform and execution. We are optimistic that the company will continue to deepen the business layout related to big health through extension and maintain a highly recommended rating in the future.