Summary of performance: during the period, the company achieved operating income of 647 million yuan, an increase of 514% over the same period last year; operating profit of 120 million yuan, down 72.3% from the same period last year; net profit belonging to the parent company was 37.94 million yuan, down 89% from the same period last year; and basic earnings per share was 0.03 yuan.
Increasing income does not increase profit. Operating income increased 514 times compared with the same period last year, mainly due to the confirmation of real estate sales revenue by subsidiary companies such as Suzhou Difu Taishanghu and JinDie Huijing Tiandi. The amount of accounts received in advance at the end of the period was 186 million yuan, down 72.95% from the beginning. However, net profit fell sharply compared with the same period last year, first because the investment income was 11.3 million yuan, down 97.6% from the same period last year; second, the proportion of minority shareholders' profit and loss in total profits increased by 15 percentage points compared with the same period last year, because the company only holds a 51% stake in Huijing Tiandi.
Less project reserve: at present, the company mainly has two large-scale projects: "gorgeous Family Taishang Lake" and "Huijing Tiandi" (51% equity), with a planned construction area of 1.09 million square meters and a rights and interests construction area of about 1.02 million square meters. Potential projects: during the period, the company signed a cooperation agreement to develop Suzhou "Tongli Culture and Leisure Expo Park" project, the company controls 70%, the initial development site covers an area of 1200 mu, with a total investment of 3 billion yuan, the company has the opportunity to obtain the target land. In addition, the major shareholder holds a 49% stake in Jindui Real Estate (the main development project) and promises to transfer part or all of it to the listed company when the conditions are ripe.
Actively develop the second main business: in 2010, it acquired a 100% stake in Guangdong Huafu Investment, with a total purchase price of 555 million yuan; indirectly acquired a 40% stake in Huatai Great Wall Futures, with an initial investment cost of 240 million yuan. During the period, the company and major shareholders invested 200 million yuan to acquire 100% equity in Haitai Investment, indirectly held a 61.6% stake in Haitai Pharmaceutical Industry, and entered the biological and pharmaceutical industries. The results of the first phase Ⅲ clinical trial of hepatitis B vaccine in 2011 showed that B gram had a good therapeutic effect on patients with hepatitis B. Phase II clinical trials of Ⅲ are expected to be completed by 2014, and new drugs will be declared in 2015 if the efficacy is confirmed.
DuPont analysis: the return on net assets is 30.61%, which is at a high level in the industry, mainly due to the high net profit margin (52.62%), while the asset turnover has increased; the asset-liability ratio is 52.52%, down 5 percentage points from the same period last year, and the financial risk is relatively small. From the income statement, the gross profit margin is 37%, which is much lower than the net profit margin, indicating that most of the company's income is contributed by non-recurrent profits and losses, and the sustainability of the main business remains to be verified.
The performance target for 2012 is cautious: in 2012, the company plans to achieve 1.5 billion yuan in revenue and 165 million yuan in expenses. If there is no non-recurrent profit or loss, the company's 2012 net profit is at risk of decline.
Maintain the investment rating of "overweight". We predict that the company's earnings per share in 2012 and 2013 are 0.23 yuan and 0.32 yuan respectively, according to the company's recent closing price of 6.95 yuan, the corresponding dynamic price-to-earnings ratio is 30 times and 21 times respectively. In view of the fact that the company's biopharmaceutical business has a lot of room for development, maintain the "overweight" investment rating.