In the first quarter of 2012, the company realized operating income of 316 million yuan, down 29.64% from the same period last year; operating profit was 26.63 million yuan, down 301.37% from the same period last year; and the net profit of owners belonging to the parent company was 28.02 million yuan, down 396.36% from the same period last year. Achieve basic earnings per share-0.0264 yuan.
Single-quarter income is the lowest since the second quarter of 2009, with gross profit margin rising year-on-year and month-on-month.
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. During the reporting period, the business volume of the company's pulp board, paperboard products, wind oil essence, optoelectronic products and export processing trade decreased compared with the same period last year, resulting in a decrease in operating income of 316 million yuan, a year-on-year decrease of nearly 30%, and a month-on-month decrease of 35.69%, the lowest quarterly income since the second quarter of 2009. In terms of product profitability, the comprehensive gross profit margin of the company's products in the current period reached 14.1%, up 1.6% from the same period last year and 5.0% from the previous month. The company has previously indicated that it will adopt the strategy of adjusting, controlling and suppressing production for products with low profits or losses. Judging from the changes in revenue and gross profit margin in the current period, the business strategy is still being implemented and has achieved results.
Expenses do not decrease with income, resulting in losses. During the reporting period, the company's sales expenses did not decrease due to the decrease in the business volume of related products, but increased by 0.73% compared with the same period last year; the administrative expenses increased by 8.68% compared with the same period last year. Due to the increase in the scale of corporate bank borrowing and the increase in interest rates, the financial expenses nearly doubled, and the total expenses for the three periods reached 69.08 million yuan, an increase of 22.64% over the same period last year. Due to the decline in income, the expense rate for the current period has reached 21.9%, far exceeding the gross profit margin by 7.8%, which is the root cause of the loss. Looking forward to the second quarter, based on the judgment of the current international and domestic economic situation and the market forecast of the company's leading products, the company expects that the cumulative net profit of the semi-annual report in 2012 may decline significantly compared with the same period last year.
The future has two variables: "pulp" and "high-end wrapping paper". As a key pulping and papermaking enterprise in Fujian Province, the development and reform of the domestic pulp and paper industry forces the company to face a critical period of transformation and upgrading. The company's new pulp project has been put into trial production. At present, the product has basically reached the quality level of imported pulp, which can be used as a variable of performance, but the profit prospect is highly dependent on cotton price. At the same time, the company will promote the high-end development of packaging paper products, comprehensively complete a series of technical reforms such as high-strength Kraft carton paper machine and high-consistency grinding, and actively develop chemical, food and other potential packaging market areas, which can be used as another variable of performance. however, there are still many links such as product research and development and market development that need to be tackled.
Profit forecast and investment rating. Taking into account the company's operating losses and the uncertainty of the overall economic recovery in the paper industry, the company maintains its "neutral" investment rating and does not give a profit forecast for the time being. the company's stock closed at 3.67 yuan on the previous trading day.
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.
