From January to September 2009, the company achieved operating income of 584 million yuan, down 60.3% from the same period last year; operating profit was 108 million yuan, up 10.0% from the same period last year; net profit belonging to the owner of the parent company was 107 million yuan, up 9.8% from the same period last year; and basic earnings per share was 0.203 yuan.

From July to September 2009, the company achieved operating income of 223 million yuan, down 49.0% from the same period last year; operating profit was 47.85 million yuan, up 692.6% from the same period last year; net profit belonging to the owner of the parent company was 44.97 million yuan, up 598.9% from the same period last year; and basic earnings per share was 0.073 yuan.

Product sales fell sharply and gross profit margin increased. The company's main business is the sales of oil products and liquefied petroleum gas. Due to the global financial crisis, in the sales market, a large number of small and medium-sized enterprises in the Pearl River Delta have reduced production, relocated or even closed down, which has greatly affected the factory delivery business of oil and gas products and reduced commercial gas consumption sharply. In the same period last year, due to the price of oil products hanging upside down and tight supply, the company's gross profit margin was on the low side. This year, the oil product supply was sufficient, and the company's product gross profit margin increased by 3.6 percentage points.

Investment in power is still the main source of profit. The company indirectly holds 21.68% of Nanshan Electric Power and 6.42% of Mawan Electric Power, which is one of the main coal-fired power plants in Shenzhen. Mawan Power has six coal-fired units, each of which is 300000 kilowatts, as well as 300000 kilowatts of fuel units in Yueliangwan Power Plant. It is expected that the company's 2009 net profit will still come from dividends invested in the power plant.

Warehousing business will become a new profit growth point: the company has acquired a 70% stake in Shenzhen Yisheng Warehouse for US $32 million (218 million yuan). In addition to the initial public offering balance of 136 million yuan, 83 million yuan needs to be raised by the company itself. we assume that the company will increase its financial expenses by 4.5 million yuan through bank borrowing for one to three years, and it is expected to bring a net profit of 7 million yuan to the company in 2010, so Thicken the company's EPS0.0036 yuan in 2010. With the recovery of macro-economy, the turnover of warehousing business increases, and warehousing business will become another important source of profit for the company.

Due to the increase in the company's non-recurrent profit and loss, we raise the company's profit forecast for 2009-2010 to 0.28 yuan and 0.34 yuan, corresponding to the latest closing price of 6.54 yuan, and the dynamic price-to-earnings ratio is 23 and 19 times. The company's stock price basically reflects the company's profitability and maintains the company's "neutral" investment rating.

Risk Tip: the dividend payment of electric power investment is reduced.