In 2011, the company achieved operating income of 10.326 billion yuan, up 6.96% from the same period last year; operating profit of 371 million yuan, down 46.72% from the same period last year; net profit belonging to the owner of the parent company was 390 million yuan, down 40.11% from the same period last year; and basic earnings per share was 0.24 yuan. Without profit distribution, the company intends to increase its share capital by provident fund by 5 shares for every 10 shares.
New orders for products vary, and revenue will grow steadily in 2012. In 2011, under the influence of the domestic and international economic environment, the company grew by 6.96%, while revenue growth declined. Among them: the income of mining coking equipment, crane equipment, train axles and wheelsets, gear transmission machinery, coal chemical equipment, oil film bearings and other products have all increased to varying degrees, the income increased by 13.44%, 9.13%, 12.26%, 12.52%, 9.17% and 34.77% respectively, while the business income of rolling and forging equipment, castings and forgings decreased by 19% and 12% respectively under the influence of the prosperity of the iron and steel industry.
The company's order situation in 2011 is good and bad, with 14.431 billion yuan of new orders for the whole year.
Excavators, large presses, new energy, axle products have maintained stability and growth, crane orders have stabilized, while steel rolling, oil film bearings, castings and forgings and other product orders are still poor. Judging from the current order situation, we do not expect the company's revenue growth rate to pick up significantly in 2012, and operating revenue will maintain a relatively steady growth trend.
The gross profit margin fell, the expense rate rose, and the company's performance declined. In recent years, in order to seek diversified development, military industry, iron and steel, coal, electric power, petrochemical and other industries have entered the equipment manufacturing industry one after another. the market competition is becoming increasingly fierce and the price of the company's products is declining. Coupled with the rise in raw material prices and other factors, the company's gross profit margin declined. In 2011, the company's gross profit margin was 13.33%, down 2.07 percentage points. At the same time, the expense rate during the period increased by 1.6 percentage points to 8.52%. The decline in gross profit margin and the increase in expense rate have led to a decline in the company's performance, with operating profit falling 46.72% in 2011 compared with the same period last year.
The construction of the project is carried out step by step. The first phase of the company's port-adjacent heavy equipment development base construction project has been completed, and the equipment has been shipped and installed one after another. The current investment progress of the project is 58%, which is slower than the expected production in 2011. The main workshop of the new high-speed train axle localization project is closed, and the equipment begins to be shipped and installed one after another. Self-funded project major technical equipment large-scale casting and forging domestic development and technical transformation project, the workshop has been closed, 80t electric furnace and 120t refining furnace have been installed, the mechanical body of 125MN press has been put in place, and the main body of the joint pumping station and substation project has been completed. The commissioning of the project will bring huge performance growth space for the company.
Breakthroughs have been made in the development of new product markets. During the reporting period, the company fulfilled orders for 75m3 excavators, 6.25m tamping coke ovens, 150MN double-acting aluminum extruders, 750t and 1200t all-road cranes, 3.6MW wind power accelerators and other new products. On the basis of the existing business structure, the company deepens its business transformation and further expands into the fields of coal chemical industry, mining machinery, construction machinery and wind power.
Breakthroughs in export orders, the establishment of subsidiaries in India, overseas markets want to make efforts. In 2011, the company achieved export income of 783 million yuan, an increase of 47.88% over the same period last year.
In 2011, the company achieved an export order of 1.809 billion yuan, of which: 500 million yuan for axle products; 4 35m3 excavators were well received by users in Russia; 4.3m coke ovens were exported to Iran for the first time; 85MN aluminum extruders were exported to the United States for the first time; and foundry cranes were exported to Australia for the first time. In addition, the company has set up a wholly-owned subsidiary in India to open up the Indian market and speed up the internationalization of the company.
Profit forecast and rating. We expect the company's earnings per share from 2012 to 2014 to be 0.27,0.35 and 0.47 yuan respectively, with a corresponding dynamic price-to-earnings ratio of 20 times, 15 times and 11 times respectively according to the latest closing price of 5.35. We maintain the company's "overweight" investment rating.
Risk tips: the risk of macroeconomic fluctuations, the risk of decline in the competitiveness of the company's products.