The company's third quarterly report shows that from January to September 2009, the company achieved operating income of 789 million yuan, an increase of 10.06% over the same period last year; operating profit of 43.49 million yuan, an increase of 118.38% over the same period last year; net profit belonging to the parent company was 32.75 million yuan, an increase of 114.14% over the same period last year; and basic earnings per share was 0.21 yuan. In the third quarter, the company achieved operating income of 252 million yuan, up 9.70% from the same period last year, down 2.07% from the previous month; net profit belonging to the parent company was 5.79 million yuan, down 72.25% from the same period last year, 19.31% from the previous year; and basic earnings per share was 0.036 yuan.
The company's operating income increased steadily and its gross profit margin decreased slightly. During the reporting period, the company's operating income was 789 million yuan, an increase of 10.06% over the same period last year. After a substantial increase of more than 50% in 2006, the company's operating income has been growing at a relatively low growth rate. with the asset restructuring of pharmaceutical circulation enterprises such as Sinopharm shares and Shanghai Pharmaceutical, it is expected that the company's business income will not increase significantly in the future. During the reporting period, the company's gross profit margin was 17.27%, down 0.32 percentage points from the same period last year, which may be caused by increased competition in the field of pharmaceutical circulation.
The rate of expenses decreased during the period. From January to September 2009, the company's period expense rate was 17.17%, down 0.61 percentage points from a year earlier, making up for the impact of the decline in gross profit margin on profits. Administrative expenses and sales expenses were controlled during the reporting period, but there was a rising trend in the third quarter, and financial expenses have been maintained at a low level with little impact on profits.
The profit growth mainly comes from the net income of investment. During the reporting period, the operating profit was 42.49 million yuan, of which the net income from investment was 23.08 million yuan, an increase of 19.22% compared with the same period last year. The net income on investment mainly came from the income from the disposal of stocks in the second quarter, which was 21.15 million yuan.
The company's business is mainly in East China, where there is fierce competition in the field of pharmaceutical circulation, and 6 of the 9 listed pharmaceutical circulation enterprises mainly operate in this region. With the integration of the field of pharmaceutical circulation, the leaders in the field of pharmaceutical circulation, such as Shanghai Pharmaceutical, Sinopharm shares and uniform Pharmaceutical Industry, will benefit from the development of the pharmaceutical industry, and the company's business income is less likely to increase significantly in the next two years.
Profit forecast and investment rating. We estimate that the company's EPS from 2009 to 2011 is 0.24,0.16,0.18 yuan. According to yesterday's closing price of 9.84 yuan, the corresponding dynamic price-to-earnings ratio is 41 times, 61 times and 56 times, giving the company a "neutral" investment rating.
Risk hint. The competitive risk in the field of pharmaceutical circulation.