According to the company's third quarterly report, from January to September 2009, the company achieved operating income of 138 million yuan, an increase of 13.09% over the same period last year; operating profit of 2.63 million yuan, down 59.66% from the same period last year; net profit belonging to the parent company was 2.19 million yuan, down 71.04% from the same period last year; and basic earnings per share was 0.0021 yuan. In the third quarter, the company achieved operating income of 52.17 million yuan, an increase of 32.87% over the same period last year and 55.97% month-on-month growth. The net profit attributed to the parent company was 3.04 million yuan, up 8.26% from the same period last year. In the second quarter, the net profit attributable to the parent company was-5.07 million yuan; basic earnings per share was 0.003 yuan.
The operating income is growing steadily, and the main business is still losing money. During the reporting period, the company's operating income was 138 million yuan, with stable growth and relatively rapid growth in the third quarter.
The company's operating profit during the reporting period was 2.63 million yuan, of which 6.21 million yuan came from investment income. After the investment income was proposed, the main business still lost money, with a loss of 3.58 million yuan during the reporting period. We believe that the loss in the main business mainly comes from the company's handling of the inventory of woolen products.
It will turn losses into profits by the end of the year. Since 2008, the company's main business has completely changed from woolen textile and biomedical pharmaceutical industry to biomedical pharmaceutical industry. From 2008 to the first half of 2009, the company lost money due to the low-cost disposal of the original inventory of woolen products. We estimate that the company's woolen products have been disposed of so far this year, and the biggest factor leading to the company's losses has been eliminated. with the steady development of biopharmaceuticals, it is almost not difficult for the company to turn losses into profits this year.
The company has three main pharmaceutical products: EPO (Erythropoietin), Xin Gusheng G-CSF (granulocyte colony stimulating factor) and recombinant human interleukin-2. EP O binding to cell surface receptors can promote the production, differentiation and maturation of erythroid progenitor cells, which is widely used in the treatment of renal anemia. G-CSF has the functions of immune regulation, vascular protection, promoting angiogenesis, anti-atherosclerosis and so on. It is mainly used in neutropenia caused by various causes. Recombinant human interleukin-2 is mainly used in the treatment of various malignant tumors and the control of malignant hydrothorax and ascites. It can also be used in the treatment after radiotherapy and chemotherapy to enhance the immune function of the body. The three kinds of products have broad market prospects and are the pillar products of the company.
Profit forecast and investment rating. We estimate that the company's EPS from 2009 to 2011 will be 0.006, 0.026 and 0.032 yuan, according to yesterday's closing price of 3.58 yuan, the corresponding dynamic price-to-earnings ratio is 1375, 325,260 times, we will not rate the company for the time being.
Risk hint. 1) the product market competition risk; 2) the risk that the wool textile products have not yet been disposed of.
