In 2010, the company achieved operating income of 960 million yuan, an increase of 25.41% over the same period last year; operating profit of 25.8 million yuan, an increase of 87.04% over the same period last year; net profit belonging to the parent company was 19.41 million yuan, an increase of 101.24% over the same period last year; and basic earnings per share was 0.09 yuan, slightly lower than our previous forecast of 0.11 yuan per share. Profit distribution plan: the company will pay out 0.30 yuan for every 10 shares on the basis of the existing 224 million shares.
The gold business contributed significantly and the net profit doubled: the company's main business was divided into commerce (99.26% of revenue and 11.72% of gross profit), service industry (0.13% of income and 21.86% of gross profit) and real estate (0.41% of income and 22.46% of gross profit).
In 2010, the company's main business income increased by 43.87%, of which the significant growth of gold business in retail branches was the main driving force driving the growth of business performance. in addition, the rental income of real estate companies and logistics companies also increased by 22.46% over the previous year. The contribution of the net increase of operating income to the growth of the company's net profit reached 6.2012 million yuan, an increase of 101.24% over the same period last year.
The comprehensive gross profit margin has declined, and the cost has declined compared with the same period last year: at the end of 2009, the company completed the equity transfer of Harbin University of Technology Software Engineering Co., Ltd., and tried to increase investment in the real estate industry in 2010. The adjusted business structure reduced the comprehensive gross profit margin from 18.19% in 2009 to 11.99% in 2010, but the period expense rate also decreased from 14.54% in 2009 to 8.37% in 2010 due to the reduction of sales and management expenses in the real estate industry.
Endogenous growth is limited, try to increase investment in real estate business: the company's income mainly depends on the commercial retail income of Ningbo and Zhejiang, the business model is single, the competitive environment is fierce, and the endogenous growth is limited. The company tries to increase investment in the real estate industry, relying on the branch Harbin Bada Real Estate Co., Ltd. to engage in real estate management, property management and hotel management. In 2010, Octopus's net profit was-777700 yuan, and it is expected to achieve a net profit of about 600000 yuan in 2011.
Earnings forecast and investment rating: the company is expected to achieve earnings per share of 0.10,0.11 and 0.13 yuan respectively from 2011 to 2013, with a corresponding dynamic price-to-earnings ratio of 93 times, 83 times and 71 times respectively. Commercial sector as a whole in 2011 24 times forecast price-to-earnings ratio, the current valuation of the company is significantly higher than the expected value of the sector, and taking into account the company's limited endogenous growth space, so still maintain the company's "neutral" investment rating.
Risk hint: the market share squeeze brought by the fierce business competition environment and the negative impact of macro real estate market regulation on the company's real estate industry.