Main viewpoints
1. The combination of Sichuan Oil Design and New Jinhua led to an increase in revenue, but the return of net profit declined. During the reporting period, the company's operating income increased by 50.04% compared with the same period last year. Mainly through the merger of Sichuan Oil Design and New Jinhua, the company improved the business plate of equipment manufacturing and engineering services, further extended the upper and lower reaches of the industrial chain, and expanded the business of high-end equipment manufacturing and engineering survey and design.
The main reason for the decline in net profit in the current period is the increase in asset impairment losses and the decrease in investment income. As the investment loss of the associated company was recognized in the current period, the investment income of the current period was-13.214 million yuan, down 1132.84% compared with 1.2794 million yuan in the same period last year. Due to the increase in accounts receivable in the current period and the corresponding increase in provision for bad debts, the impairment loss on assets in the current period reached 20.6992 million yuan, an increase of 54.74 percent over the same period last year.
The company's three fee rates have changed obviously, and the company is in good condition.
two。 Industry trough extension mergers and acquisitions, to create comprehensive energy companies in 2015 to actively implement the layout of collectivization development, integration of relevant business plates, through the merger and acquisition of Sichuan Oil Design and New Jinhua cut into the field of unconventional oil and gas engineering design and high-end equipment manufacturing, to create a number of large-scale business plates and the strategic layout of the whole industry chain. At the same time, the company has established a strategic policy of cultivating independent listing of various business sectors to form a multi-level and multi-platform rapid development strategy. In 2015, Ying Anxin and Omec were listed on the new third board. In January 2016, the company passed a "motion on the proposed restructuring of the company's holding subsidiary and listing on the new third board." the subsidiary Xi'an Aohua will be listed on the new third board this year. Multi-platform financing is conducive to the rapid development of the company.
3. Layout of the whole oil and gas industry chain, large companies with flexible performance when oil prices pick up, through continuous development and improvement and corresponding capital operation, have changed the company's industrial chain from underground to the ground, from software to hardware, from equipment to engineering, and from production to application. Rapid expansion from upstream to downstream, forming a relatively complete industrial chain of comprehensive energy service companies. At present, as the most perfect listed company in the layout of the domestic oil service industry chain, we think that the performance of the company is very flexible when the oil price rebounds.
4. Profit Forecast:
It is estimated that the company will achieve a net profit of 124 million, 150 million and 183 million, corresponding to EPS 0.17,0.21,0.26 yuan, and PE 55X, 45X, 37X in 16-18 years, which are cautiously recommended and rated.
5. Risk Tips:
New business expansion fell short of expectations, and oil prices remained low.