The basic situation of the company's performance: from January to September 2011, the company achieved operating income of 1.729 billion yuan, an increase of 40.64% over the same period last year; operating profit of 3 million yuan, an increase of 30.31% over the same period last year; net profit belonging to the parent company was 6 million yuan, an increase of 71% over the same period last year; and basic earnings per share was 0.04 yuan. The company's performance is basically in line with our expectations.
The profit in the third quarter is still negative, and the increase in income does not increase profit: the company's operating income from July to September in the third quarter was 606 million yuan, an increase of 48.34% over the same period last year. The net profit belonging to the parent company was-2.76 million yuan, an increase of 11.43% over the same period last year. Due to the low gross profit level (only 1.44% in the third quarter and 2.04% in the first three quarters) and no sign of improvement, the company's profit continues to be negative, and the low gross margin is the biggest reason why the trade industry does not increase profits. the profit margin of the industry is low.
The financial expenses increased significantly, and the wind power project was completed: the financial expenses of the company rose 108.26% to 10.23 million yuan in the first three quarters compared with the same period last year, due to the increase in interest expenses. Projects under construction decreased by 98% compared with the same period last year, due to the completion of its wind power project. The amount received in advance rose 176.44% to 13.96 million yuan compared with the same period last year, due to the increase in trade sales.
From foreign trade to domestic trade, transformation and development is the main way to improve performance: the main development direction of national policy in the future is the transition from foreign trade-oriented economy to domestic trade-oriented economy, and the company's trade income is the company's main source of profit (accounting for 50% of gross profit). Its growth is the main guarantee of the company's future performance, at the same time, wind power projects (accounting for 36% of gross profit, profit margin 68%) will be an important point for the company to improve its profits. The company's Inner Mongolia Wulanchaba Bayinxile Wind Farm Phase I 49.5MW has been successfully integrated into the grid for power generation, and the second phase of the project is currently in the project declaration stage. It is believed that the wind power industry will become the main source of profit for the company in the future.
Earnings forecast and investment rating: the company is expected to achieve earnings per share of 0.14 yuan and 0.15 yuan respectively from 2011 to 2012, according to the closing price of 9.98 yuan on October 24, the corresponding dynamic price-to-earnings ratio is 71 times and 67 times respectively. Compared with the trading sector's overall forecast price-to-earnings ratio of 13 times in 2011, the company's valuation is significantly higher than the sector's expectations, so it still maintains the company's "neutral" investment rating.
Risk hint: wind power project progress is lower than expected.