Main points of investment
The company's 2017H1 realized operating income of 203.2092 million yuan, an increase of 12.41% over the same period last year; the net profit belonging to shareholders of listed companies was 25.5807 million yuan, up 5.76% from the same period last year. The revenue of municipal public garden business and real estate landscape business reached 104.5103 million yuan and 98.6989 million yuan respectively, up 35.18% and 4.60% respectively over the same period last year; Q1 and Q2 revenue increased by 27.85% and 7.27% respectively over the same period last year, and the growth rate slowed down in the second quarter.
The company's 2017H1 achieved a comprehensive gross profit margin of 26.52%, down 1.12% from the same period last year. Due to the intensified competition in the garden industry, the gross profit margin of municipal garden projects and real estate garden projects declined to a certain extent; the net profit margin decreased by 12.59%, which decreased by 0.79% compared with the same period last year; the proportion of expenses during the period was 10.09%, slightly lower than the 10.70% in the same period last year. Itemized, the proportion of management expenses and financial expenses in the first half of the year decreased by 0.12% and 0.49% respectively compared with the same period last year.
The proportion of asset impairment loss was 1.53%, an increase of 0.05% over the same period last year, mainly due to an increase in the loss of bad debts withdrawn by the company in the current period compared with the same period last year. The net operating cash flow per share was 0.37 yuan, an increase of 0.02 yuan over the same period last year, which was basically the same as the same period last year. The company's cash-to-cash ratio and cash-to-cash ratio in the first half of the year were 74.88% and 62.54% respectively, down 9.70% and 9.55% respectively from the same period last year.
Profit forecast and rating: the company's EPS from 2017 to 2019 is expected to be 0.33,0.36,0.39 yuan respectively, and the corresponding PE is 52.3,48.2 and 44.2 times, maintaining the company's "neutral" rating.
Risk hints: real estate regulation risk, accounts receivable repayment risk, newly signed order not up to the expected risk