In the first half of 2011, the company achieved operating income of 570 million yuan, an increase of 72.5% over the same period last year.
The operating profit was 117 million yuan, up 1.96% over the same period last year; the net profit belonging to the owner of the parent company was 86.12 million yuan, down 0.06% from the same period last year; and the basic earnings per share was 0.11 yuan, with net assets per share of 1.37 yuan.
The developer of the complex in Shandong. The company completed asset restructuring at the end of 2008, and major shareholders and their related parties injected into the real estate business. The company has three main projects, all of which are large urban complexes of more than 1 million square meters, namely, Jinan Zhongrun Century City, Weihai Korea window, Zibo Zhongrun overseas Chinese Town.
The main reason for increasing income but not increasing profits. Income increase: the current period of real estate settlement projects increased.
No profit increase: first, the comprehensive gross profit margin decreased by 10.8 percentage points to 44.7%. Second, the expense rate during the period increased by 3.5 percentage points to 11.1%.
The mining business has not yet contributed to performance on a large scale. During the reporting period, the company acquired 52% of each of Sichuan Pingwu Zhongjin Mining Co., Ltd. and Tibet Zhongjin Mining Co., Ltd., and successfully intervened in the field of mining investment. By the end of the reporting period, the registration of industrial and commercial change of Pingwu Zhongjin Mining Industry has been completed, and the registration of industrial and commercial change of Tibet CICC Mining Industry is under way. The income of mineral business in the first half of the year was 3 million yuan, accounting for 0.5% of the operating income.
In the first half of the year, sales withdrew funds increased compared with the same period last year, and the amount received in advance increased further. The company did not release first-half real estate sales figures. During the reporting period, the company received 803 million yuan in cash for selling goods and providing services, an increase of 13.1% over the same period last year. At the end of the reporting period, the company's prepaid balance was 1.983 billion yuan, an increase of 18.32% compared with 1.676 billion yuan at the beginning of the period, and the certainty of future performance growth is higher.
Short-term insolvent pressure, long-term financial structure is sound. At the end of the reporting period, short-term loans and non-current liabilities due within one year totaled 51 million yuan, monetary funds as high as 656 million yuan, short-term non-repayment pressure; the company's real asset-liability ratio excluding prepaid payments was 46.86%, down 4.9% from the beginning of the period. the long-term financial structure is sound.
Profit forecast and investment rating. Regardless of the performance contribution of the mining business for the time being, we expect the company's earnings per share for 2011-2012 to be 0.40 yuan and 0.43 yuan respectively. Based on yesterday's closing price of 13.02 yuan, the corresponding dynamic price-to-earnings ratio is 32 times and 30 times respectively. Taking into account the company's layout of Shandong key cities, complex super-market model, strong profitability, good growth, as well as the company's entry into mining resources to maintain the company's "overweight" rating.
Risk hint. The risk that the development cycle of mineral resources is long and the development progress is lower than expected.
The risk that the progress of real estate settlement is not up to expectation.