Event: the company announced the China News.
The performance in the first half was lower than expected
In the first half of the year, the company's main business income increased by 40%, the net profit belonging to the parent company increased by 20%, and the net profit per share was 0.08 yuan.
The company's performance is lower than we expected, first, due to the rising pressure of raw material prices in the first half of the year, resulting in a significant decline in comprehensive gross profit margin; a more important reason is that the progress of the company's improvement in non-operating profit and loss is lower than we expected, resulting in large financial expenses and asset impairment losses. Although the company's foreign borrowing fell by nearly 10% in the first half of the year, the company's expected loan of 310 million to Agricultural Bank Of China remained unresolved, resulting in a slow progress in reducing financial expenses. In terms of accounts receivable, the accounts receivable of the company with an age of more than one year has significantly increased by 27 million, resulting in high asset impairment losses under the strict policy of provision for bad debts.
Revenue growth in the second half of the year is sustainable.
The company's business grew well in the first half of the year, including 35% growth in refrigerators and freezers, 47% growth in electric cars and 220% growth in vending machines. The improvement in business has enabled the company to gradually reduce its debt.
Looking forward to the second half of the year, the company's revenue growth momentum can continue. The growth trend of the demand for refrigerators and freezers in the rural market is obvious; the bidding for electric cars to the countryside has nearly been completed and will be reflected in the sales income in the second half of the year. The vending machine business has benefited from the rapid growth of China's accelerated urbanization, such as the supply of Shanghai subway and market fair demand in the first half of the year. Judging from the company's books, the amount received in advance has increased by 47% compared with the end of last year.
Performance improvement can not be achieved overnight, given a "neutral" rating
Although the momentum of the company's second venture is very good, it can not be achieved overnight by relying on its own strength to get rid of the historical burden and achieve great-leap-forward development. The company also needs a period of time to absorb excessive liabilities and non-performing assets in order to reduce non-operating profit and loss and fully release performance. In 10-11-12, the annual EPS is expected to be 0.21,0.43 and 0.65 yuan respectively, downgrading to "neutral".