From January to September 2009, the company achieved operating income of 1.53 billion yuan, a decrease of 19.58% compared with the same period last year; operating profit loss of 9.41 million yuan, a decrease of 1.96%; net profit belonging to the owner of the parent company was 2.42 million yuan, down 61.31% from the same period last year; and basic earnings per share was 0.01%.
In the third quarter, the company achieved an operating income of 592 million yuan, a decrease of 1.33% over the same period last year; an operating loss of 2.54 million yuan, a decrease of 83.46%; and a net profit of 80,000 yuan belonging to the owner of the parent company, a decrease of 101.53% over the same period last year.
Low profitability and improper cost control are the main causes of persistent losses. The company's main home textile industry, low profitability makes the performance in the edge of small profits, in recent years began to set foot in the real estate and new materials industry, but due to low management efficiency, failed to achieve the overall performance. The continuous losses in the past two years are due to the failure to effectively strengthen internal management during the crisis and the failure to effectively control expenses in the event of a decline in income.
The gross margin increased in the first three quarters, but the expense rate increased. The increase of 1.44 percentage points in the comprehensive gross profit margin was mainly due to the reduction in the cost of upstream raw materials, but the expense rate increased by 3.57 percentage points, of which the management expense rate, the sales expense rate and the financial expense rate increased by 1.67%, 1.51% and 0.39% respectively. As a result, profitability continued to remain unimproved, while losses decreased slightly, due to increased investment income.
During the reporting period, the company gained more from its involvement in the securities market, and its investment income increased by 29.53 million yuan over the same period last year, which slowed down the loss accordingly. The final realization of the profit is due to the profit of the parent company and the loss of the subsidiary.
The third quarter was relatively stable. The situation in the third quarter is similar to that in the first half of the year, with an increase in gross profit margin but an increase in expense rate. As most of the investment income was realized in the third quarter (accounting for 60% of the first three quarters), the loss per quarter decreased significantly.
There is no growth point in the future. We believe that it is difficult for the company to improve its performance in the short term.
The original home textile industry is restricted by the low profit level, and it is difficult to have a substantial development in the later stage. In terms of real estate and new materials, it is very difficult to completely improve the management efficiency in a short period of time. The company does not have many interesting points in the future and will hover at the break-even point for a period of time.
Profit forecast and rating. It is estimated that the earnings per share from 2009 to 2010 will be 0.01,0.01yuan, the current stock price is 5.28yuan, and the dynamic PE is 528,528,528 times, maintaining the "neutral" rating.
Risk hint. The increase in raw material costs will be a decline in gross profit margin.
