Driven by regional investment, there is an inflection point in the main paint industry. In 2009, the company's paint business income was 173.48 million yuan, accounting for 84.5% of the revenue, with 50, 000 tons / year paint production capacity. Due to the high growth of demand driven by real estate and infrastructure investment in the northwest region, the decline in raw material prices and the company's expansion of marketing channels, the gross profit margin of the paint business increased to 26.77% from 15.34% in 2008, and the gross profit margin of the business increased by 119% compared with the same period last year. Without taking into account the impairment of assets, the company's main business has turned a loss into a profit. The second development of the western region and the high growth of fixed assets investment in Gansu Province have provided conditions for the downstream demand expansion of the company's paint products.
The structure of paint products has been continuously optimized, and the proportion of new paints has increased to enhance the profitability of the company. The company's wind power coatings, powder coatings, decorative glue, high-grade environmental protection latex paint and other environmental protection, high-performance new products rapid research and development and successfully put on the market, so that the paint product structure tends to be optimized. Once the sand-fixing agent products cooperated with Beijing University of Chemical Technology and Northwest normal University are successfully developed, the prospect is promising. The advent of the company's new wind power paint has broken the monopoly of similar foreign products, and will further increase the company's market share of wind power paint.
The land of the old factory area needs to be developed urgently, and the expansion of trade and logistics business is expected to bring new development opportunities for the company. At present, the company's old factory area of industrial land into commercial land approval work is being actively promoted. The 117 mu of land in the original factory area is located in the eastern business district with great appreciation potential. after the completion of the bidding procedure, if the company can obtain the right to use the land, the company plans to develop trade and logistics business. According to the estimation of market price, the current value of 117 mu of land is about 700 million yuan.
Performance forecast and investment rating: it is estimated that in 2010 and 2011, the EPS of the company will be 0.14,0.19 yuan respectively (this valuation does not take into account the land disposal problem of the company's old factory area). Corresponding to the closing price of 8.08yuan on May 7th, PE has reached 58,43 times respectively, giving the company a "neutral" rating.