Jiangxi Changyun achieved operating income of 714 million yuan in the first quarter of 2016, up 6.59 percent from the same period last year. The net profit belonging to shareholders of listed companies was 13.6193 million yuan, down 62.42% from the same period last year. Earnings per share were 0.06 yuan, down 60% from the same period last year.
Business analysis
The number of passengers decreased due to the impact of the railway, and the increase in unit cost sharing dragged down the net profit: the company's net profit dropped sharply in the first quarter, mainly due to the continuous reduction of highway passenger traffic due to the opening of the Xianjiang railway, the Shanghai-Kunming high-speed railway and the Beijing-Fuzhou high-speed railway in recent years. The decrease in the number of tourists in the first quarter reduced the current revenue by 52.45 million yuan, down about 10% by 15% compared with the same period last year. Although this issue newly merged Jingdezhen Hengda Logistics Co., Ltd., Resource bus Co., Ltd., etc., resulting in an increase in operating income compared with the same period, due to the high proportion of fixed costs in passenger transport business, the decline in passenger supply led to an increase in unit cost sharing, resulting in a substantial decline in net profit. At the same time, the cost of industrial chain integration generated by the new merger into the company increased by about 70 million, which is far greater than its profit contribution.
The sinking network responds to the impact of high-speed rail, expands tourism and logistics, and creates the trend of "three industries at the same time": in order to cope with the competition of high-speed rail, the company successively acquired urban public transport companies such as Huaneng Changyun in Dexing City in 2015, and actively laid out railway blind spot areas. the development of urban and rural passenger transport, rural passenger transport, tourism passenger transport, and high-speed rail formed a seamless relationship of competition and cooperation, turning threats into opportunities and developing new profit growth points. At the same time, the company is actively transforming and upgrading, cutting into the logistics and tourism industry which can be developed in coordination with the company's main business. In 2015, it acquired 55% of Jingdezhen Hengda Logistics Co., Ltd. and invested in the logistics center. At the same time, actively integrate passenger transport and tourism resources in Jiangxi Province to build a "big tourism" industry. In the future, we will actively explore the simultaneous development of road passenger transport, logistics and tourism, interconnection and common development.
The reform of state-owned enterprises is expected to start again, and 2016 will enter the year of implementation: the introduction of the guidance of the CPC Central Committee and the State Council on deepening the Reform of State-owned Enterprises in the second half of 2015, and the landing of the top-level plan for deepening the reform of state-owned enterprises. It shows that 2016 will be the year for the implementation of state-owned enterprise reform, and local reform will take in-depth actions. Jiangxi Changyun, which is controlled by Nanchang State-owned assets Supervision and Administration Commission and the only listing platform of Jiangxi Changyun Group, is expected to benefit from this round of state-owned enterprise reform, which will lead to the improvement of operating efficiency or profit growth.
Profit adjustment
We estimate that the EPS for 2016-18 is 0.38Universe 0.505Universe 0.686 yuan per share.
Investment suggestion
In the face of high-speed rail competition, the company refines the district and county-level network. At the same time, actively integrate the logistics and tourism industry to create the strategic planning of three industries at the same time, with good profitability and growth. Give a "buy" rating.
