Events:
The company issued an announcement on the plan of the chairman, general manager and other directors to increase their holdings of the company's shares in the next three months, with a cumulative amount of not less than 1000 yuan per person.
Comments:
There has been another increase in executive holdings, demonstrating confidence in the future development of the company:
The company issued an announcement to increase its holdings by Mr. Zheng Zhaowei, chairman of the company, Mr. Li Ronghua, general manager, Mr. Zhang Lei, vice chairman, and Mr. Xu Haiqin, director of the company. it is planned to increase the cumulative amount of the company's shares in the next 3 months from the date of this announcement to no less than RMB 1000 million per person. This increase demonstrates the senior executives' confidence in the company's future development prospects and their recognition of the company's investment value, and aims to promote the sustained, stable and healthy development of the company, and effectively safeguard the interests of minority shareholders and the stability of the capital market.
The proposed issuance of medium-term notes will result in a marginal improvement in the financing environment:
With the landing of the new rules and regulations on capital management (draft for soliciting opinions) since July, the standing Committee of the State Council and the meeting of the Politburo of the CPC Central Committee have successively released the marginal easing signal of policy on infrastructure and local government financing. The company announced on August 21 that it intends to issue medium-term bills of no more than 500 million yuan, which will further broaden the company's financing channels, optimize the financing structure, reduce financing costs, and enhance the flexibility of fund management. to ensure the demand for liquidity caused by the growing scale of production and operation, the proposal of the company to issue medium-term bills also shows the practical improvement of the financing environment of landscape engineering listed companies.
With the coordination of garden and automobile business, the performance is expected to maintain high growth:
On the one hand, the company is actively involved in ecological garden business and ecological environmental protection business, and is committed to becoming the leading comprehensive developer of the whole industrial chain of "seedling-design-construction-operation". On the other hand, as the leader of the domestic non-tire rubber products subdivision industry, the market share increases steadily, laying a solid foundation for performance growth. In the first half of this year, the company's revenue from real estate gardens and municipal gardens was 3.07 yuan and 682 million yuan respectively, an increase of 15.50% and 24.21% respectively over the same period last year, while the operating income of hose products and rubber damping products was 2.44 yuan and 411 million yuan respectively, up 8.78% and 22.38% respectively over the same period last year. At the same time, in the first half of this year, Saishi Garden, a wholly-owned subsidiary of the company's garden sector, has signed unfinished orders of 6.408 billion yuan, including 6.32 billion yuan for engineering orders, 88 million yuan for design orders, and 2.626 billion yuan in revenue corresponding to last year's garden sector. the guarantee ratio of order income is more than 2 times.
Financial forecasts and valuations:
It is estimated that the company's net profit from 2018 to 2020 will be 8.79 million yuan for return to its mother, an increase of 44.3 percent, 39.9 percent, and 34.8 percent over the same period last year, corresponding to an EPS of 0.61, 0.85 and 1.14 yuan. The current share price corresponds to 11.4 PE 8.2 Universe 6.1 times from 2018 to 2020, maintaining a "highly recommended" rating.
Risk tips: PPP business model risk, extension is not up to expectations, payback risk and so on.