In the first three quarters of 2009, the company achieved operating income of 4.549 billion yuan, down 14.84% from the same period last year; operating profit was-7.5 million yuan, down 200.56% from the same period last year; net profit belonging to the parent company was 14.57 million yuan, down 3.03% from the same period last year; and earnings per share was 0.06 yuan. Due to the weakness of the external demand market, export revenue declined from January to September 2009 compared with the same period last year.
It will pick up for the whole year, and the gross profit margin will increase in the first three quarters. The sharp decline in global demand caused by the world economic recession is expected to narrow the decline in the company's import and export business for the whole year as the deterioration of the world real economy is curbed and the national foreign trade support policy is further effective. In the first three quarters, the company's comprehensive gross profit margin was 5.47%, an increase of 0.14 percentage points over the same period last year.
The rate of sales expenses and management expenses increased, while the financial expenses decreased. The sales expenses incurred by the company during the reporting period were 86.27 million yuan, down 6.83% from the same period last year, and the sales expense rate was 1.9%, an increase of 0.16% over the same period last year. The management fee was 129.17 million yuan, an increase of 17.02% over the same period last year, and the management expense rate was 2.84%, an increase of 0.77% over the same period last year. The financial expenses were 61.54 million yuan, down 34.18% from the same period last year, and the financial expense rate was 1.35%, 0.4% lower than the same period last year. The reasons for the decline in financial expenses are: 1. The total amount of borrowing is lower than that of the same period in 2008; 2. The loan interest rate is lower than that of the same period in 2008.
Earnings the stock market improved and the fair value increased. Fair value change income increased by 152.54% due to the increase in the market value of stocks and funds invested by subsidiaries.
The non-operating income increased as a result of the demolition of the garment factory. The company realized non-operating income of 22.05 million yuan, an increase of 168.16% over the same period last year, due to the receipt of demolition money from Xiongzhou West Road Garment Factory, Liuhe District.
The performance of the participating companies has declined, and the investment income has declined. The investment income of joint ventures and joint ventures decreased by 74.19%, due to the lag in the recognition of sales revenue, and the investment income contributed by Longshi Real Estate, a participating company, decreased significantly in the first three quarters.
Earnings forecast and investment rating: the company is expected to earn 0.10 yuan per share and 0.08 yuan per share in 2009 and 2010. Based on the closing price of 6.55 yuan on October 30, the corresponding dynamic price-to-earnings ratios in 2009 and 2010 were 63 times and 84 times, respectively. Due to the high valuation, the company maintained its "neutral" investment rating.
Risk hint: indicates that the trading environment is deteriorating and the company's trading business is under pressure.