The basic situation of the company's performance: in the first quarter of 2011, the company achieved operating income of 350 million yuan, an increase of 46.23% over the same period last year; operating profit of 15 million yuan, an increase of 60.01% over the same period last year; net profit belonging to the parent company was 37 million yuan, an increase of 81.51% over the same period last year, and basic earnings per share was 0.05 yuan.
The gold business made a significant contribution, driving a substantial increase in performance: the company's operating income in the quarter increased by 46.23% over the same period last year, with a net increase of 110.8 million yuan, of which gold income increased by 95.59 million yuan, which was the main reason for the performance improvement. at the same time, the wholesale branch reduced its operating income by 6.42 million yuan due to brand clean-up. The increase in operating costs exceeded the increase in operating income to 51.48%, resulting in a year-on-year decline in the composite gross profit margin of 3.11 percentage points to 10.21%. The net non-operating income and expenditure decreased by 172.82% to minus 54400 yuan due to 40600 yuan in out-of-stock compensation paid by the wholesale branch and 11800 yuan in fixed assets disposal losses of logistics companies.
The management expenses decreased significantly, and the cash flow of investment activities increased significantly: the company's management expenses dropped 19.99% to 8.8 million yuan in the first quarter compared with the same period last year, and the expense rate during the period was reduced by about 4 percentage points. The investment cash flow rose 13209.63% to 22.37 million yuan from the same period last year due to the receipt of 20.9 million yuan from half of the 802 warehouse demolition funds.
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 (99.26% of income, 11.72% of gross profit margin), 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. It is expected that under the macro background of the tightening of the real estate policy, there are certain uncertain factors in the income of its real estate investment, and the cyclical development and construction of the real estate industry may be of limited help to the company.
Earnings forecast and investment rating: the company is expected to achieve earnings per share of 0.10,0.11,0.13 yuan respectively from 2011 to 2013, with a corresponding dynamic price-to-earnings ratio of 95 times, 85 times and 72 times respectively. Compared with the commercial sector's overall forecast price-to-earnings ratio of 25 times 2011, the current valuation of the company is significantly higher than the expected value of the sector, taking into account the limited room for endogenous growth, so the company still maintains a "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.