From January to June 2010, the company achieved an operating income of 211 million yuan, an increase of 32.06% over the same period last year; an operating profit of-17.5628 million yuan, a loss of 2.32 million yuan over the same period last year; a net profit of-18.927 million yuan belonging to the parent company, an increase of 7.2 million yuan over the same period last year; and earnings per share.
Overview of the company's fundamentals: the company's main business is real estate development and sales, soybean processing business and pharmaceutical business. The major shareholder of the company is Xinhu Group, which has a registered capital of 660 million yuan, the business scope is industrial investment and development, and is the actual controller of Xinhu Zhongbao, a listed company in Shanghai. Harbin Hi-Tech focuses on soybean deep processing business. Harbin Hi-Tech Soybean Food Co., Ltd. is a demonstration enterprise of the national soybean action plan. The company introduces 110 sets of advanced equipment and adopts many advanced technologies such as the production of more than 30 kinds of soybean protein isolate extraction technology and formula, oligosaccharide tertiary membrane separation technology and so on. The real estate business is another performance pillar of the company. The "New Lake Kangqiao" project, which was developed in 2008 in Daoli District, Harbin City, is the only project settled by the company in this period.
Soybean deep processing business is the key to turnaround losses. The soybean deep processing business operated by the subsidiary Harbin Hi-Tech Soybean Food Co., Ltd., realized soybean deep processing business income of 127 million yuan from January to June 2010, an increase of 70.92% over the same period last year. The subsidiary still lost 15.93 million yuan, due to the rising price of steam for production and the high price of raw materials in stock, which increased production costs. At the same time, the decline in foreign demand led to a decline in finished product prices and sales, resulting in losses. External demand recovered slowly in 2010, and although high-cost raw materials have been released to some extent, sales and prices have not yet recovered, so business operations still face difficulties. Judging from the data in the first half of the year, sales picked up somewhat. The company produced 3645 tons of isolated protein, sold 2791 tons, produced 1589 tons of tissue protein, and sold 1426 tons. Soybean deep processing business is the key to whether the company can reverse its losses in the future.
The real estate business income enters the settlement, the income increases. The "New Lake Kangqiao" project, which was developed in 2008 in Daoli District, Harbin City, is the main project sold by the company in 2009. The sales situation is good, and some sales have entered the settlement from January to June 2010.
In 2010-2011, in addition to the gradual recognition of the sales revenue of the "New Lake Kangqiao" project, the construction of the "New Lake Songhua River" project will begin in the second half of this year. At present, the company's real estate business will maintain a certain income, as the company's major shareholders decide to change the company's main direction, the real estate business will gradually shrink.
Profit forecast and rating: we forecast that the company's net profit attributable to the parent company in 2010-2012 is-17.66 million yuan,-3.52 million yuan and-4.08 million yuan respectively, and the corresponding EPS is-0.05,0.01 yuan and-0.01yuan respectively. The estimated loss cannot be calculated as PE. In 2010, the company's soybean deep processing business development task is arduous, the real estate business project reserve is insufficient, maintain the company's "neutral" investment rating.
