In the first half of 2012, the company realized operating income of 3.888 billion yuan, an increase of 24.67% over the same period last year. The net profit belonging to the shareholders of the parent company was 53 million yuan, down 3.8% from the same period last year, and earnings per share was 0.009 yuan. The company produced more products in the first half of the year, and its sales increased by 13000 tons compared with the same period last year. The income of the main products: the sales income of metallurgical equipment was 1.115 billion yuan, an increase of 51.75% over the same period last year. Income from nuclear energy equipment totaled 250 million yuan, down 52.46 percent. The sales income of heavy pressure vessels was 1.452 billion yuan, an increase of 73.26% over the same period last year. The sales revenue of large castings and forgings was 488 million yuan, down 28.67% from the same period last year. Forging equipment 178 million yuan, an increase of 71%.
Gross profit margin of leading products: metallurgical equipment 8.88%, a year-on-year decrease of 0.2 percentage points, low gross profit margin has not improved. Nuclear energy equipment is 37.73%, down 1.58 percentage points, and the profit level is still high. Heavy pressure vessels 30.04%, an increase of 3.05 percentage points, domestic forged welding structure hydrogenation reactor 90% market share is owned by the company. Large castings and forgings 20.12%, an increase of 0.41 percentage points, fierce market competition, the level of gross profit margin is not high. The gross profit margin of all kinds of products has not changed much from the same period last year.
In the first half of the year, the company's sales expenses were 54 million yuan, an increase of 16.47% over the same period last year. The management fee was 489 million yuan, an increase of 5.89% over the same period last year. The increase in sales and management expenses is within a reasonable range. The financial expenses were 177 million yuan, an increase of 94.59% over the same period last year, mainly due to 2.5 billion of corporate bonds issued by the company at the end of 2011, including bond interest.
We forecast that the company's main business income from 2012 to 2014 is 75.6,83.2 and 9.43 billion yuan respectively, the net profit is 3.22,5.23 and 639 million yuan respectively, and the earnings per share is 0.05,0.08,0.1 yuan, which is 37.5%, 33.3% and 28.6% lower than the previous forecast.
The net asset per share in 2012 is estimated to be 2.61 yuan. According to the valuation of 1.2 times PB in 2012, the reasonable share price is 3.13 yuan. In the second half of the year, there are still many uncertainties in the industry situation of the company, and the investment rating is lowered from "overweight-A" to "neutral-A".
Risk tip: changes in industry and corporate fundamentals exceed expectations, resulting in failure to achieve profit forecasts.