From January to September 2009, the company achieved operating income of 360 million yuan, down 32.8% from the same period last year; operating loss of 55.72 million yuan, operating profit of 15.13 million yuan for the same period last year; net loss of 45.4 million yuan, net profit of 12.45 million yuan for the same period last year; and basic earnings per share of-0.11 yuan.

3Q's operating income was 146 million yuan, year-on-year / month-on-month growth-11.2% ticker 26.9% TX 3Q operating loss 17.74 million yuan, second quarter operating loss 28.47 million yuan, compared with 6.68 million yuan in the same period last year; 3Q net loss of 11.55 million yuan, second quarter net loss of 24.92 million yuan, net loss of 7.02 million yuan in the same period last year.

There are no obvious signs of improvement in the company's operation. The company is mainly engaged in the production and sales of thin film capacitors and related materials. Since the beginning of this year, due to the impact of the global macroeconomic downturn, the market demand for the company's leading products has decreased, and the sales price has also dropped, so revenue and profits have dropped sharply. From a quarterly point of view, the company's operating improvement in the third quarter is not obvious, revenue increased month-on-month, but gross profit margin increased 5.06 percentage points month-on-month to 6.38%, still at an all-time low. Since the beginning of this year, the level of the company's gross profit margin has fluctuated greatly. We suspect that it is mainly due to the fact that the sales prices of products are difficult to improve while the prices of raw materials fluctuate during the reporting period due to the sluggish downstream demand. It is expected that the company's revenue and gross profit margin will continue to rebound in the fourth quarter and will be profitable in the single quarter.

The ability of cost control needs to be improved. In the long run, the gross profit margin of a single product of components shows a downward trend, so the key point of profit lies in the upgrading of product structure and the control of expenses during the period. However, in recent years, the company's period expense rate is high (16.4%, 18.4% and 17.8% respectively in the past three years), which seriously weakens the company's profitability. In the first three quarters, the company's period expense rate was 18.3%, which is basically the same as that of the same period last year. We believe that with the expansion of production and marketing scale in the fourth quarter, the company's period expense rate may decline, but the annual expense rate will remain high. It is difficult to achieve the target set by the board of directors at the beginning of the year to control the period expense rate below 14.5%.

Be bearish on the long-term development of the company. The company's metallized film, capacitors and other leading products production capacity and market share are in the forefront of the country, the industry position is more prominent. However, for a long time, it has been difficult for the company to turn industry leadership and revenue growth into profit growth. We don't think the long-term development prospect of the company is optimistic.

It is estimated that the company's earnings per share from 2009 to 2011 are-0.09 yuan, 0.02 yuan and 0.02 yuan respectively. No matter in the short term or long term, the company has no obvious investment opportunities and maintains its "neutral" investment rating.