Revenue increased compared with the same period last year, while gross profit margin decreased slightly
The company achieved revenue of 2.437 billion in 16 years, an increase of 33.89%. In terms of business, revenue from public decoration was 1.359 billion, down 1.65% from the same period last year; revenue from residential decoration was 1.042 billion, up 152.52%, mainly due to the recovery of real estate sales over the past 16 years, and the company received decoration orders from major customers such as Evergrande Mingdu and Dalian Shicheng. In addition, starting from December 16, Xinyi Solar, a subsidiary whose main business is photovoltaic power station, will be included in the company's consolidated financial statements, so the photovoltaic business segment of the company's revenue will be significantly improved in the future. The company had revenue of 561 million in the first quarter of 17 years, up 8.38% from the same period last year.
We use the index of "gross profit margin-business tax and additional / sales income" to eliminate the change in accounting caliber brought about by "business reform and increase". Using this index, we calculated that the gross profit margin for 2016 was 11.04%, down 0.16 percentage points from last year. Among them, the gross profit margin of public decoration and residential decoration was 11.43% and 13.11% respectively, down 2.94% 0.96 percentage points respectively.
The rate of three expenses has decreased, and the net profit of returning to the mother has increased significantly.
The company's three-item expense rate in 16 years was 4.18%, which was 0.88 percentage points lower than that in 15 years. Among them, the sales expense rate and financial expense rate were 0.94% and 0.75% respectively, down 0.28% and 0.07% respectively, and the management expense rate was 2.49%, down 0.52% from 15 years. This is mainly due to the gradual improvement of the internal management level of the enterprise through the organizational adjustment of the procurement center and the comprehensive implementation of ERP project control and other measures, resulting in a decline in the elasticity of management expenses for business growth. In 16 years, the company calculated the loss of asset impairment by 85 million, accounting for 3.47% of revenue, an increase of 1.32 percentage points. The increase is mainly due to the increase in the loss of bad debts of enterprise accounts receivable. The 16-year net profit of the company was 95 million yuan, with an increase of 46.51%. The net profit of Q1 in 17 years was 32 million, an increase of 31.07%, and the growth rate slowed down. The forecast range of homecoming net profit in the first half of 17 years is 0.70 to 86 million, with an increase range of 30 to 60 per cent.
The decline in the payment-to-cash ratio exceeds the decline in the cash-to-cash ratio, and after the fixed increase to raise funds in place, the liquidity improved to enter the Internet home improvement to open up a new blue ocean, trial water photovoltaic power station new performance growth point emerging 16 years of the new company and home world to further promote the construction of home improvement platform, and put forward the "VR+BIM+ERP" management concept, and the use of "personalized home improvement full delivery" the third delivery model. The company is expected to form a new development path in Internet home decoration. In addition, the company gives priority to the distribution of photovoltaic power generation on the road of transformation, mainly entering the photovoltaic industry through investment and strategic cooperation, while obtaining investment income, it also lays the foundation for the development of intelligent building decoration business and photovoltaic building integration business in the future. Xinyi Solar, a major shareholding company related to photovoltaic construction integration business, had revenue of 71 million and net profit of 47 million in 16 years.
Investment suggestion
As one of the leaders in the decoration industry, the company actively develops a new blue ocean of Internet home decoration while consolidating its traditional business of home decoration and public decoration, and gives priority to the distribution of photovoltaic power generation on the road of business transformation. while benefiting from the development prospects of the photovoltaic industry in the future, it also lays the foundation for the company to develop intelligent building decoration and photovoltaic building integration business. For the first time, it is rated as "overweight". It is estimated that the EPS for 17-19 will be 0.96, respectively, and the EPS for 17-19 will be 0.96, respectively.
Risk hint: the prosperity growth of the photovoltaic industry is not up to expectations, and real estate investment has dropped sharply.