Operating data for the current period: in 2011, the company achieved operating income of 1.417 billion yuan, an increase of 15.71% over the same period last year, and a net profit belonging to the parent company of 188 million yuan, an increase of 99.25% over the same period last year, and basic earnings per share of 0.41 yuan.
Summary of the company's fundamentals: the company has changed from an original commercial and trading enterprise to a financial services enterprise such as pawn, guarantee and financial leasing, and has become the first listed pawn company in China.
The company revolves around the development strategy of "quasi-finance as the leader, commerce and real estate as the two wings". Its holding subsidiaries are mainly engaged in domestic trade Xiangyi Jinlian (70%), Yuantai pawn (82%) and Xiangyide pawn (78.7%), and so on.
The contribution rate of pawnshop to gross profit is the highest. During the period, the interest income from commodity sales, real estate sales and pawn was 1.075 billion yuan, 21.98 million yuan and 84.89 million yuan respectively, the gross profit margin was 5.75%, 49% and 93.7% respectively, and the gross profit contribution rate was 40.6%, 7.08% and 52.28% respectively.
Non-operating income thickening performance in the reporting period: non-operating income during the period 162 million yuan, non-recurrent profit and loss accounted for 86.23% of the net profit. Mainly due to 77.79 million yuan in compensation income from business house demolition, 17.105 million yuan in government subsidies, and 15.84 million yuan in revenue from the acquisition of Ningbo Xiangyi Hotel during the reporting period, which thickens the company's net profit, which is one of the reasons for the greater increase in the company's performance during the reporting period.
The financial business developed rapidly: the amount of guarantee business reached 1.41 billion yuan during the period, including 331 million yuan for financing and 1.078 billion yuan for commercial performance guarantee. The company's pawnbroking business develops steadily. By the end of the reporting period, the size of the company's loan assets was 1.125 billion yuan, of which 1 billion yuan was normal loans, accounting for 89% of the loan assets, up from 87.46% at the beginning of the year, while the proportion of suspicious assets and loss assets decreased. Provision for loan losses totaled 45.88 million yuan, a slight increase over the beginning of the period. The company's pawnbroking business risk control ability continues to enhance. With the increasing demand of a large number of small and medium-sized enterprises for funds, and the gradual tightening of bank loan policy since 2010, coupled with the rise in interest rates, the company's loan yield increases, the company's future pawn business performance is expected.
Earnings forecast and investment rating: we predict that the company will achieve basic earnings per share of 0.34 yuan and 0.48 yuan in 2012 and 2013 respectively. Based on the latest closing price of 7.05 yuan, the corresponding dynamic price-to-earnings ratio is 21 times and 15 times respectively. Corporate financial business mainly includes pawn, entrusted loan, guarantee and leasing business, in which pawnbroking business, guarantee business and entrusted loan business have a good momentum of development, the company's financial business volume and interest rates have increased, and business income has increased significantly, maintaining the company's "overweight" investment rating.
Risk hint: there are many businesses, and the advantages of the main business are not outstanding.
