An overview of the first quarter results of 2010. From January to March 2010, the company achieved operating income of 121 million yuan, down 15.75% from the same period last year; operating profit of 6.5501 million yuan, up 78.19% from the same period last year; net profit belonging to the parent company was 5.4586 million yuan, up 540.89% from the same period last year; and basic earnings per share was 0.005 yuan.
The performance mainly comes from the investment income. The company achieved an investment income of 22.23 million yuan, an increase of 22.22 million yuan over the same period last year, which was the main source of income during the reporting period. 1) 9.64 million yuan from the transfer of 50% property rights of Shenzhen Shatoujiao Nantian Shopping Mall; 2) received 12.58 million yuan in dividends from joint ventures and joint ventures.
The debt structure has changed slightly. The asset-liability ratio of the company at the end of the reporting period is 63.56%, which is equal to that at the beginning of the period. However, its structure has changed: 1) the amount received in advance increased significantly. At the end of the reporting period, the company had an advance payment of 329 million yuan, an increase of 109.67% over the beginning of the period. (2) short-term loans decreased significantly. Due to the repayment of 100 million yuan to Shenzhen Investment Holdings Co., Ltd., the company's short-term loan at the end of the reporting period was only 1 million yuan, a decrease of 99 million yuan compared with the beginning of the period. 3). The long-term loan increased, and the company borrowed 703 million yuan at the end of the reporting period, an increase of 20.85% over the beginning of the period.
The land available for development is still insufficient. The historical land in the company's existing land reserve is difficult to develop in the near future due to various reasons, resulting in the current real estate business mainly depends on the Golden Leaf Island project. The land transfer problem of Longgang project has not been substantially solved, the land use planning of East Lake Dijing Mingyuan project is extremely difficult, the progress of re-construction of Shantou Xinfeng Building project is slow, and the planning and adjustment of Jinhu Road project is still fighting for. In August 2009, the company bought two pieces of land in Guangming New District, Shenzhen, with a total construction area of 180,000 square meters, which temporarily alleviated the problem of insufficient land reserve, but due to the difficulty of solving the problems left over by other projects, the land available for the company's development is still insufficient. During the reporting period, the company paid 200 million yuan for the Guangming project, and it is estimated that 400 million yuan has not yet been paid for the project.
Profit forecast and investment rating. It is expected that the company will achieve earnings per share of 0.04,0.06 and 0.07 yuan respectively from 2010 to 2012. based on the closing price of 6.22 yuan on April 26th, the corresponding dynamic price-to-earnings ratio is high and maintains a "neutral" investment rating.
Risk hint. The company's existing land reserve is difficult to solve the remaining problems, which restricts the development of the company's main business.