According to the 2009 annual report, the company's annual operating income was 2.163 billion yuan, down 13.54% from the same period last year; operating profit was-88.45 million yuan, down 153.83% from the same period last year; and the net profit belonging to the owner of the parent company was-211 million yuan, down 855.23% from the same period last year. Basic earnings per share is-0.29 yuan. The company suffered heavy losses in 2009.
Relocation and asset scrapping seriously affected performance in 2009. Production has been suspended since December 2008 because the Expo relocation company is located on Jiyang Road in Shanghai.
A 550T/D float glass production line of Guangdong Yaopi Glass Co., Ltd. was scrapped in May 2009 due to aging and failed to generate revenue for the company in the second half of the glass industry. In addition, the Jiyang Road factory of Shanghai Yaopi Construction Glass Co., Ltd. also stopped production in December 2008 due to the relocation of the World Expo. These seriously affected the company's performance, of which the non-operating expenditure caused by asset disposal in the fourth quarter was as high as 152 million yuan.
The company's operation improved significantly in the fourth quarter of 2009. The company's profitability rebounded significantly and improved quarter by quarter. The company's fourth-quarter consolidated gross profit margin was 22.48%, up 6.98 percentage points from the third quarter and 6.78 percentage points higher than the same period last year. The operating profit in the fourth quarter was 44.43 million yuan, a significant reversal from negative to positive. If it is not dragged down by non-operating expenses, the net profit will also achieve a V-shaped reversal.
Capacity release will lead to a rebound in future performance. The company's first 600T/D float relocation line has been completed in 2009 and will be put into production in 2010. At the same time, the 1.08 million square meter engineering glass production line of Jiangmen base project has been put into production, and another 600T/D float production line has been transformed into an online LOW-E production line, and the company's performance will rebound significantly in 2010.
At the same time, in 2011, the company plans to have Tianjin engineering glass production line (new annual production capacity of 1.9 million square meters toughened, 1.2 million square meters of LOW-E coating, 900000 square meters of hollow and 150000 square meters of laminated glass production line) and a 250T/ D ultra white calender glass production line to be built and put into production, and the company's future performance improvement trend is determined.
The company benefits from energy conservation and new energy policies. Through the transformation and construction of the company's production line, there is only one pure float glass production line of 550T/D in Tianjin, and the others are ultra-white Calendering glass, construction engineering glass production line, modified online LOW-E and float production line that can be transformed into online LOW-E. In today's economic restructuring and advocating energy conservation and new energy, companies are more likely to benefit from policy impact.
Profit forecast and investment rating. Taking into account the situation of the glass industry, the elimination of the impact of the company's relocation and the release of future production capacity. The company's earnings per share in 2010 and 2011 are expected to be 0.23 yuan and 0.35 yuan, based on the closing price of 8.04 yuan, the corresponding dynamic PE is 35 times and 23 times, taking into account the clear trend of performance rebound, the gradual release of production capacity will improve the company's performance and give the company a cautious "overweight" rating.
Risk hint: the risk that the prosperity of the industry will decline, the price of raw materials will rise and the production line will not meet the expectations.