Curtain rail foundation, the PV help the performance outbreak

Event Description:
A certain company  have released 2015 annual report, during the report period, they have achieve operating income of 2.55 billion yuan, an increase of 31.58%, gross margin of 14.86%, down of 3.07%,to achieve attributable equity holders net profit of 107 million yuan. An increase of 10.59%, EPS0.14 yuan. Among them, the fourth quarter operating income are 708 million yuan, an increase of 15.02%, gross margin 11.45%, down of 6.99%, to achieve attributable equity holders net profit of 36 million yuan, down of 5.26%, EPS 0.05yuan in the fourth quarter. EPS 0.03yuan in the third quarter.Event Reviews
Main substantial growth in profit contribution: benefit from the curtain wall business, shielding revenue growth, revenue grew of 31.58%. Profitability, due to PSD market pressures, keen competition, gross margins declined, the company PSD business accounted for a large lifting, resulting the reduced overall gross profit margin of 3.07%. in the financial aspect, the expenses for this period are increased by 67 million, due to the increased advertising and promotional expenses, the sales costs are increased by 31 million, at the same time, because the average loan amount increased, financial expenses increased by 22 million, last year, the Superimposed asset impairment losses increase over 023 million, and impact the profit, at last leading the final net profit of 107 million yuan, an increase of 10.59%.

  Curtain main business to create a new heights: Companies targeting high-end curtain wall market and actively adopt different marketing strategies to response the call of the national energy saving, develop the energy-saving curtain wall, build a great brand image, those ways has been the main guarantee of performance. During the reporting period, the sales revenue for curtain business are 2.1 billion, an increase of 27.81%, year-end backlog of 2.28 billion, it has laid a good foundation for this year's operations. The steady development of cross-rail construction: as a leading enterprise, during the reporting period, the reserve orders are 660 million, it has laid a foundation for the sustained and rapid development of this year. Meanwhile, they have taking the fast way to develop the overseas markets, it is expected to achieve leapfrogging development.
  To help accelerate the development of new energy: their off grid solar system project have signed a purchase and sales contract with China Southern Power Grid. Successfully generate and bring benefit. Currently they have approved the issuance of 470 million for the construction of photovoltaic power plant project, it is expected to become a new profit growth point.  A certain company  will usher the harvest period: A certain company  started to sale in January, it’s the time that Shenzhen commercial real estate recovery. The project will significantly enhance the company’s assets, replenishment, and bring substantial rental income and stable cash flow, and provide strong financial support for PV projects.
  It is expected the company’s EPS in 2016 and 2017 are 0.96yuan and 1.36yuan, the corresponding PE of 17.12 times, based on the company earnings persistence, business and future prospects of Class B shares, to reward a “overweight” rating.