Main points of investment
The real estate development business is nearing completion. The company's real estate development business is located in Chengdu. At present, the company has only two projects. The projects are all located in Xipu Town, Pixian County, which belongs to the location closest to the central urban area in the suburbs of Chengdu.
The asset structure is good and there is plenty of cash on hand. The company has no interest-bearing liabilities on its books, but the annual report on cash and short-term wealth management products totaled more than 1.1 billion yuan in 2015, with a sufficient margin of safety. The company's annual report in 2015 is 485 million yuan in cash and holds a total of 652 million yuan in various capital preservation and robust financial products. The company has a good asset structure, with an asset-liability ratio of only 26.35% in the first quarter of 2016 and 20.38% excluding accounts received in advance.
The R & D and manufacturing business of special FRP products for rail transit has developed rapidly with great potential. The company invested 98 million yuan to acquire a 49% stake in Qingdao Kangping Railway FRP Co., Ltd. Qingdao Kangping Railway FRP Co., Ltd. is a company specializing in the production of EMU trains and urban rail transit vehicles related products company. In 2015, the company realized a total investment income of 15.2035 million yuan from Qingdao Kangping Company.
The medical service business has entered the actual operation and made rapid progress. The company's medical investment platform is Beijing Changshenggu Hospital Management Co., Ltd., and its subordinate medical clinic business has entered the stage of actual operation. Beijing Youmai Medical Clinic under Changsheng Valley is currently a unique clinic in Beijing, which is practiced almost entirely by experts from Peking Union Medical College Hospital, providing high-quality medical services to patients.
The motivation is fully in place, covering most middle and high-level employees. The company launched the stock option and restricted stock incentive plan in February 2016. At present, it has encouraged 61 people and granted a total of 1067 million rights and interests. Among them, the company plans to grant 3.5 million stock options (completed registration) to 59 incentive objects and 7.17 million restricted shares to 17 incentive objects. The unlocking condition is that the non-return net profit deducted in 2016 and 2017 is not less than 5791.88 yuan and 64.1424 million yuan respectively. This incentive plan covers a wide range and fully motivates important backbones, which will effectively mobilize the enthusiasm of management and important backbones and effectively combine the interests of shareholders, companies and employees.
Investment advice: the company is a typical "small and beautiful" company with no interest-bearing liabilities on its books, but its annual report on cash and short-term wealth management products totaled more than 1.1 billion yuan, with an adequate margin of safety. At present, the company's initial investment areas include comprehensive real estate development, rail transit special fiberglass product research and development and manufacturing industry, medical services and other industries. We believe that the company has great potential for future development. From 2016 to 2018, the EPS is expected to be 0.25,0.29,0.35 yuan respectively, corresponding to 52.1,44.9 and 37.2 times of PE, respectively.
Risk tips: real estate project sales are lower than expected; the progress of transformation is lower than expected and so on.
