Summary of results in the first quarter of 2011: operating income was 146 million yuan, up 136.67% over the same period last year; operating profit was 38.57 million yuan, up 2.66% over the same period last year; net profit belonging to the parent company was 13.04 million yuan, up 121.36% from the same period last year; and earnings per share was 0.04 yuan.
The substantial increase in performance is mainly due to the carry-over of real estate projects. The company's main business includes real estate development, lamp market leasing and commodity sales, mainly in Zhejiang, Sichuan and overseas. The substantial increase in the company's performance during the reporting period was mainly due to the sales carry-over of its subsidiaries' real estate projects.
The company's Wenling "time Garden" project has achieved a sales rate and capital recovery rate of 100% in 2010, and was completed and delivered in the first quarter of 2011. The project is relatively remote and the average price is not high, resulting in a year-on-year drop in gross profit margin of about 2 percentage points in the first quarter. At present, the company's real estate project is only the remaining Jinhua "Hanyuefu" project, the real estate is located in Jinhua urban area, covering an area of 60 mu, with a total construction area of more than 70,000 square meters, estimated according to the current average price of 4000 yuan per square meter of commercial housing around the company. it is expected to bring 280 million yuan to the company's income, the project is still in the early stage of the project, is expected to start pre-sale next year.
There is room for improvement in financial leverage. In the first quarter, the company received 78.24 million yuan in cash for selling goods and providing services, down 38.54% from the same period last year, and the net cash flow for operating was-35.45 million yuan, compared with 35.13 million yuan for the same period last year. This is mainly due to the fact that the company no longer has any real estate projects available for sale and requires a large amount of capital for projects under construction. By the end of the first quarter, the balance of cash and equivalents of the company was 223 million yuan, there were no short-term liabilities, and the accounts received in advance was 434 million yuan, which fully covered the company's business plan of 430 million in 2011. after deducting the amount received in advance, the real debt ratio is only 6.15%. The company intends to increase financial leverage in the future to develop the trade circulation industry and the reconstruction of the existing lighting market.
Pay attention to the opportunities brought by the integration of Wenzhou state-owned enterprises. In December 2010, the state-owned property rights of Zhejiang Oriental Group, the company's controlling shareholder, were transferred to Wenzhou Modern Service Investment Group Co., Ltd., the company said that in the future, it will take the modern service industry as the direction and continue to adhere to the "Trident" management strategy, that is, to develop the trade circulation industry as the leading, real estate and capital operation as the two wings, leading the main industry, and promoting the two wings.
Profit forecast and investment rating. Without considering the asset injection, we expect the company's EPS from 2011 to 2012 to be 0.21 yuan and 0.24 yuan. Based on yesterday's closing price of 7.76 yuan, the dynamic price-to-earnings ratio is 37 times and 32 times, which does not have the valuation advantage, considering that the current Wenzhou Hyundai Group