From January to June 2011, the company achieved operating income of 461 million yuan, an increase of 17.37% over the same period last year. The net profit belonging to the owner of the parent company was 27.58 million yuan, an increase of 72.84% compared with the same period last year. The loss of asset impairment in the first half of the year was 1.55 million yuan, a decrease of 18.27 million yuan compared with the same period last year, and the impact on EPS was about 0.13 yuan. The reason for the large impairment loss of assets in the same period last year was the upgrading of some of the company's products.
Gross profit margin remained stable. With the completion of the company's technical transformation project and the expansion of production capacity, the company's cost control ability has also been improved. From January to June, the company's comprehensive gross profit margin was 28.60%, up 0.52 percentage points from the same period last year; in the second quarter, the company's comprehensive gross profit margin was 28.75%, down 0.03 percentage points from the same period last year, and up 0.25 percentage points from the previous quarter.
During the period, the expense rate increased more than the same period last year. The expense rate during the period from January to June was 18.52%, an increase of 2.36 percentage points over the same period last year. Among them, the management expense rate was 7.79%, up 1.70% from the same period last year; in the second quarter, the company's expense rate was 18.83%, up 3.09% from the same period last year, mainly because the management expense rate rose 4.38% to 9.98% from the same period last year.
Against the trend to increase income, the market share expanded significantly. The company's leading products are automotive diaphragm spring clutches, mainly for FAW Jiefang, Changan and other commercial vehicle manufacturers. FAW Group and its affiliated enterprises are the main source of the company's sales income, accounting for about 44%. In the first half of the year, China's automobile production and sales of 9.156 million and 9.3252 million vehicles, an increase of 2.48% and 3.35% over the same period last year, and the company's sales revenue grew against the trend, far exceeding the industry average. On the one hand, the company's original market share has expanded; on the other hand, the company opened up 14 new mainframe manufacturers in the first half of the year.
It is expected that with the recovery of car sales in the second half of the year, the company's performance is still likely to improve further.
Clutch production capacity improvement project continues to move forward. The company's current 2.5 million sets of clutch production capacity technical renovation project has been completed, the company plans to continue to implement the clutch capacity project, to increase the clutch production capacity to 3.6 million sets, focusing on enhancing the car clutch production capacity, and consolidate the competitive advantage of heavy vehicle clutch.
The increase in production capacity will help the company to further expand its market share and enhance its profitability, and we are optimistic about the company's competitive advantage and development prospects in the clutch market.
Profit forecast and rating. It is estimated that the EPS of the company from 2011 to 2013 will be 0.25,0.35,0.47 yuan respectively. Based on the closing price of 13.16 on August 16, the corresponding dynamic price-to-earnings ratio will be 55, 37 and 28 times respectively. Considering that the increase in production capacity will further improve the company's profitability and maintain the investment rating of "overweight".