Three quarters report data.
From January to September 2010, the company achieved operating income of 900 million yuan, up 3.33% from the same period last year. The net profit belonging to the owner of the parent company was 87.6 million, down 36.61% from the same period last year, and earnings per share was 0.096 yuan. In the third quarter, the company achieved operating income of 320 million yuan, an increase of 24.53% over the same period last year, and the net profit belonging to the owner of the parent company was 18.37 million yuan, down 46.86% from the same period last year. Realize earnings per share of 0.019 yuan. The company's main income comes from urea sales.
The rebound in urea prices led to a rise in sales revenue.
The company's operating income grew significantly in the third quarter, rising 21.80% month-on-month, mainly due to the recent rise in urea prices. The impact of natural disasters in the first half of this year delayed the start of the fertilizer market, making urea prices hit a low point after a brief rise in the first half of this year. Since August, the rising grain prices have stimulated the demand for agricultural fertilizer, while the continuous rise in international urea prices has led to a significant increase in domestic urea exports. in addition, the rise in domestic natural gas prices has increased the cost of urea by nearly 200 yuan. Under the influence of demand, export and cost, the price of urea began to rise after August, 120 yuan higher than that in July.
Natural gas prices rise to compress urea gross profit margin.
Since the company's natural gas price and pipeline transportation costs have increased by 0.31 yuan per cubic meter since June 1, the unit cost of urea is expected to increase by 200 yuan, while the average urea price in the third quarter is only about 50 yuan higher than that of the same period last year. As a result, the urea gross profit margin decreased significantly in the third quarter. We expect that with the off-season reserves and dealer stock after October, urea prices will remain high driven by demand and costs, and the company's urea gross profit margin will pick up to a certain extent.
Coal chemical project put into production to improve the company's long-term profitability.
Tianfu coal chemical project and fully funded red chemical project, which are 51% controlled by the company, are expected to be put into production by the end of the year and early next year, respectively. The above two projects are located in Guizhou, which is rich in coal resources, and the production of coal can be guaranteed. At the same time, because Guizhou is rich in coal resources and the price is 200 yuan lower than the national average, the company's product production cost advantage is obvious. Significantly enhance the company's profitability. With the successive commissioning of these two projects, the company's monopoly position in Guizhou will be further strengthened and the product industry chain will be extended, while reducing the operational risks caused by unstable natural gas supply.
Assumptions and profit forecasts.
Under the premise that the company's Tianfu coal chemical project is successfully put into production at the end of this year, we estimate that the company's EPS in 2010 and 2011 will be 0.13 yuan and 0.30 yuan respectively, with a corresponding PE of 50.8 yuan and 22.0 yuan, respectively.
