In 2011, the company achieved operating income of 5.23 billion yuan, an increase of 38.8% over the same period last year, exceeding the plan of 4.5 billion yuan in 2011. the annual net profit belonging to the owner of the parent company was 354 million yuan, an increase of 456% over the same period last year, and earnings per share was 0.76 yuan. In terms of profit distribution, it is proposed to pay a cash dividend of 1 yuan (including tax) for every 10 shares.
The income of joint alkali products during the reporting period was 4.56 billion yuan, accounting for 87.2% of the total revenue, an increase of 32% over similar products in 2010, mainly due to two aspects: first, the increase in equity and production capacity during the reporting period compared with 2010 In August 2010, the company approved the acquisition of 49% stake in Hubei Shuanghuan Science and Technology (Chongqing) Alkali Industry held by Hubei Yihua Group Co., Ltd. and 55% stake in Chongqing Yihua has officially owned 100% income rights of the two companies since 2011. the company has a combined alkali production capacity of 1.8 million tons. On the other hand, the price of soda ash is high in 2011. Take light soda ash as an example, the average price of soda ash in 2011 reached 1845 yuan / ton, an increase of 28% over the same period last year. In addition, the price of ammonium chloride rose from 750 yuan / ton in March 2011 to 1250 yuan / ton in mid-late August, an increase of 67%. The current price is still 1080 yuan / ton.
In October 2011, the price of soda ash fell sharply, dragging down the annual performance growth. In 2011, domestic soda prices fell unilaterally from the beginning of October to 1730 yuan / ton at the end of the year, which was basically the same as the average price in the fourth quarter of last year. In the first three quarters, the company achieved a 980% increase in net profit belonging to the owner of the parent company. Under the influence of the decline in soda ash prices in the fourth quarter, the annual growth rate declined.
In 2012, the company plans to achieve sales of soda ash and ammonium chloride of 1.8 million tons each, with an income of 5 billion yuan. Judging from the current soda ash market, the company is more likely to achieve this goal in 2012. In addition, the real estate project of Yichang Yihua Shanyu City has entered the sales stage and is expected to become a profit growth point in 2012; the 300000 tons of PVC building materials project of Yihua Plastics has been put into production and can also contribute profits in 2012. The company currently has a raw salt production capacity of 2.3 million tons, according to the current soda production capacity, the rate of raw salt can reach 88%, and the company is building a new well and mineral salt project to further improve the self-sufficiency rate of raw salt.
Earnings forecast and investment rating: the company's earnings per share from 2012 to 2013 are expected to be 0.57 yuan and 0.66 yuan respectively, according to yesterday's closing price of 10.33 yuan, the corresponding dynamic price-earnings ratio is 18 times and 16 times respectively. Maintain the investment rating of "overweight".
Risk hint: soda ash price has further downside risk; uncertainty risk of real estate project sales, sales risk of new PVC project.