From January to September 2009, the company achieved operating income of 167 million yuan, down 0.80% from the same period last year; the total profit was 2.9088 million yuan, an increase of 4.8% over the same period last year; the net profit belonging to the owner of the parent company was 4.6113 million yuan, up 191.10% from the same period last year; and basic earnings per share was 0.0244 yuan.
The company's main business paint and alkyd production and sales growth was weak, maintaining a gross profit margin of 23.48% in the first three quarters of 2009, mainly due to the adjustment of accounting policy. the customer service expenses and finished product warehousing expenses listed in the management expenses and manufacturing expenses are recorded in the sales expenses, and the operating profit margin is-5.04%. There is no improvement in the state of annual losses in the main business.
Period expenses increased significantly: the company's expenses increased by 57.46% from January to September 2009 compared with the same period last year, and the expense rate increased by 58.13% to 25.21%. Among them, the sales expenses increased by 98.06% compared with the same period last year, which is the company's change of accounting method this year. The customer service expenses and finished product warehousing expenses originally listed in the management and manufacturing expenses are listed in the sales expenses this year, resulting in an abnormal increase in the cost. Financial expenses increased 16 times year-on-year, mainly due to the increase in interest expenses caused by a substantial increase in new short-term borrowing this year. The annual expense rate of the company is more than 15%, which seriously affects the company's ability to turn around losses in its main business.
Non-operating income to make up for losses in the main business: the company's non-operating income from January to September 2009 was 8.767 million yuan, an increase of 159.21% over the same period last year, fully making up for the loss of the main business, mainly due to the increase of more than 4 million other payables confirmed to be unable to pay in the third quarter. The company's non-operating income in 2007 and 2008 was 20.43 million yuan and 31.01 million yuan, accounting for 116% and 144% of the company's total profits, mainly from entrusted financial revenue and local government subsidies. In addition, the application for approval of the conversion of industrial land into commercial land in the company's old factory area is in progress, and the company has a book value of 87.14 million yuan of land use rights for sale, which is expected to bring non-operating income to the company in the future.
Earnings forecast and investment rating: the company's non-recurrent profit and loss have a great impact on the company's performance, and the main profitability is weak. We predict that the company's EPS in 2009, 2010 and 2011 will be 0.03,0.06,0.07 yuan respectively, corresponding to the price-to-earnings ratio of 210,105,90 times per share. The company is currently in a high valuation level, and we maintain a neutral rating.
