From January to June 2010, the company achieved operating income of 3.654 billion yuan, an increase of 252.89% over the same period last year; operating profit of 128 million yuan, an increase of 73.04% over the same period last year; net profit belonging to the parent company was 62.1745 million yuan, an increase of 8.48% over the same period last year; and income per share was 0.04 yuan.
Summary of the company's fundamentals: the company takes "regional development + financial equity investment" as its main business strategy. in addition, the main business also involves garbage power generation business, greening industry, high-tech clean materials industry and oil warehousing and sales industry. The company invested shares in financial institutions such as Bohai Securities, Northern International Trust, Bank of Tianjin and Guotai Junan Securities. The financial industry controlled by Teda Holdings, the actual controller of the company, involves banking, insurance, trust, securities, funds, guarantee, pawn and so on, which has formed a relatively complete financial holding platform.
Revenue from the real estate business has increased significantly. The company's real estate business income from January to June 2010 was 208 million yuan, an increase of more than 10 times over the same period last year, which was caused by the regular settlement of the Torrega Garden project and comfortable housing, Hangu Binhai District, with a gross profit margin of 41.93%, down 21 percentage points from the same period in 2009. Toroga project sales rebate of 181 million yuan from January to June 2010. It is expected that the Toroga project will continue to bring stable profits for the company for 3-4 years in the future. Comfortable housing of Hangu Binhai District sells well, but due to the low gross profit margin, it makes little contribution to the profit and lowers the gross profit of the real estate business. In the first-level development section, the company actively promoted the preliminary work of the 11-square-kilometer development project of Yangzhou Guangling New City, and made use of the advantages accumulated in the Yangzhou Sound Valley project to successfully launch the "China Sound Valley" model and strive to copy it.
Rapid development of environmental protection and greening industry: from January to June 2010, the company achieved public facilities management business income of 265 million yuan, an increase of 3.59% over the same period last year, and environmental management business income of 66.32 million yuan, an increase of 17.14% over the same period last year. At present, the company has a total of 9 environmental protection and new energy projects, including 4 large-scale waste incineration power generation projects, 4 comprehensive waste treatment projects and 1 straw power generation project. Among them, the Shuanggang waste incineration power plant handled a total of 195000 tons of domestic waste in the first half of the year, realizing 5840 million kilowatt-hours of online electricity, an increase of 13% and 8.9% respectively over the same period last year; the civil engineering project of the Yangzhou project was basically completed; the construction preparations for the design and equipment bidding of the Dalian project and Guanzhuang project were carried out in an all-round way, and the preliminary application and construction was accelerated. Environmental protection as a sunrise industry with stable income, the rapid growth of its scale is conducive to the stable growth of the company's performance.
Plan to issue additional shares and increase the size of the environmental protection industry: in July 2010, the company announced a pre-plan for a non-public offering of no more than 16690 shares to no more than 10 specific investors, including the controlling shareholder Teda Group, at a price of 6.89 yuan. the total amount of funds raised does not exceed 1.15 billion yuan. The funds raised will be invested in three waste power generation projects in Dalian, Tianjin and Yangzhou. According to the feasibility analysis report on the use of the funds raised by the company, after the completion and production of the three projects raised by the non-public offering, the average annual disposal of garbage is 1.2775 million tons, the average annual electricity consumption is 377.78 million kilowatt-hours, and the average annual income is 292 million yuan. The average annual profit is 115 million yuan, and the gross profit margin is 39.38%. All three projects have the possibility of applying for CDM subsidy, and if they receive CDM subsidy income in the future, the return on investment of the project will be improved. After the completion and commissioning of the three waste incineration power generation projects, the company's environmental protection business income will grow by leaps and bounds, and its competitiveness in the field of waste incineration power generation will be further enhanced. At the same time, the company's overall profitability will also be further enhanced.
The rapid growth of oil sales revenue is the main reason for the company's substantial increase in revenue in the first half of the year: from January to June 2010, the company's oil products wholesale business income was 3.051 billion yuan, an increase of about 380% over the same period last year. The sharp increase in business income is mainly due to the rapid growth of oil products wholesale business. However, due to the low gross profit margin on oil sales (3.32%), the decline in current investment income of about 35%, and the increase in the profit and loss ratio of minority shareholders (mainly because the real estate business income comes from Nanjing Xincheng Development Co., Ltd., which controls 51%), as a result, the growth rate of net profit belonging to the parent company is much lower than that of operating income.
Profit forecast and rating: excluding SEOs, we predict that the company's 2010-2012 net profit attributable to the parent company is 166 million yuan, 175 million yuan and 190 million yuan respectively, and the corresponding EPS is 0.11,0.12yuan and 0.13yuan respectively. According to the closing price of 7.92yuan on August 9, the dynamic PE is 70,67 and 62 times respectively, the company's valuation is on the high side, and the company's "neutral" rating is maintained (see Table 1). If the company succeeds in issuing additional shares, it is expected to improve the speed of business expansion, increase the growth rate of performance, and benefit the company.
Therefore, investors are advised to pay attention to the relevant investment opportunities.