For the whole of 2011, the company achieved operating income of 2.016 billion yuan, down 1.11% from the same period last year; operating profit of 21.88 million yuan, down 65.41% from the same period last year; net profit belonging to the owner of the parent company was 12.47 million yuan, down 77.49% from the same period last year; and basic earnings per share was 0.0117 yuan. In 2011, the company does not plan to increase its share capital through profit distribution and provident fund.
The main business is under pressure, and the income has decreased slightly. The company is mainly engaged in the production, marketing and trade of paper bag paper, natural pulp board, paperboard and corrugated paper products, paper products, optoelectronic products, pharmaceutical products, forest products and so on. The company has a paper and paperboard production capacity of 500000 tons, pulp production capacity of 96000 tons, the product "Qingshan brand" paper bag paper is in a leading position in the domestic industry, the market share is about 42.5%, and the market share of natural wood pulp is about 10%. The market share of paperboard and corrugated paper is about 0.1%. During the reporting period, the company was affected by many adverse factors, such as the financial crisis, the European debt crisis and the increasingly fierce market competition. in order to deal with it actively, the company made great efforts to do a good job in the production and operation of the core business of paper bag paper. at the same time, we should adopt the strategy of adjusting, controlling and suppressing production for the products with low profit or loss. Although the income from "paper, cardboard and paper products", "pulp and by-products" and "pharmaceutical products" increased by 0.89%, 18.55% and 17.91% respectively, the overall income still decreased slightly compared with the same period last year.
During the period, the expense rate rises faster than the gross profit margin, and the normal profit base is not there. During the reporting period, the company's fine production management effectively ensured the improvement of the comprehensive gross profit margin of the product, which increased by 1.71 percentage points to 11.6% compared with 2010, but at the same time, due to the increase in advertising investment, debt restructuring, borrowing scale and cost, the expense rate during the company period simultaneously increased by 3.48 percentage points to 12.21%. The expense rate level has exceeded the gross profit margin, and the company's profit cannot be formed normally.
Investment income avoids full-year losses. During the reporting period, the company made a total investment income of 44.49 million yuan from the sale of available-for-sale financial assets, which has become an important factor to avoid annual performance losses, which is similar to the situation in 2010, which further reveals the current plight of the main business.
Fujian pulping and papermaking leader, based on the main pulp and paper industry in the future, give full play to the advantages of long fiber pulping and promote the high-end development of packaging paper. As a key pulping and papermaking enterprise in Fujian Province, with the development and reform of the domestic pulp and paper industry, the company is facing a critical period of transformation and upgrading. Combined with its own advantages and disadvantages, on the one hand, the company is working hard to promote the stable production of new pulp projects and achieve new profit growth points. The project has been put into trial production during the reporting period, and the pulp products have basically reached the quality level of imported pulp. On the other hand, it will promote the high-end development of packaging paper products, comprehensively complete a series of technical reforms such as high-strength Kraft carton paperboard machine and high-consistency grinding, and actively develop chemical, food and other potential packaging market areas.
Profit forecast and investment rating. It is estimated that the company's earnings per share from 2012 to 2013 are 0.02yuan and 0.01yuan respectively. According to yesterday's closing price, the corresponding dynamic price-to-earnings ratio is 209x and 295x respectively, maintaining the company's "neutral" investment rating.
Risk hint. 1) the risk of price fluctuation of waste paper raw materials; 2) the risk that the profitability of pulp is lower than expected. 3) the risk of exceeding expectations in the market competition of containerboard and corrugated paper.
