From January to June 2011, the company achieved operating income of 1.573 billion yuan, an increase of 5.96% over the same period last year. The net profit belonging to the owner of the parent company was 30.72 million yuan, an increase of 14.78% compared with the same period last year. In the second quarter, the company realized operating income of 917 million yuan, a year-on-year increase of 13.19% and a month-on-month increase of 39.90%. The net profit belonging to the owner of the parent company was 17.3 million yuan, an increase of 20.09% over the same period last year, and the gross profit margin decreased slightly by 28.95% month-on-month.
Affected by factors such as the rise in raw material prices in the first half of the year, the company's comprehensive gross profit margin from January to June was 10.67%, down 0.40 percentage points from the same period last year; the expense rate during the period from January to June was 8.37%, down 0.87 percentage points from the same period last year.
Business analysis. The company mainly sells large and medium-sized high-and middle-grade passenger cars, and the national market share of high-grade luxury passenger cars is more than 30%. In the first half of the year, sales of large and medium-sized passenger cars (excluding chassis) increased by about 2.7% compared with the same period last year. According to the Automobile Association, the company sold 1977 large and medium-sized buses (excluding Jianghuai buses), an increase of about 4 per cent over the same period last year and slightly higher than the industry average.
The export business will increase in volume and have no worries about the performance in the coming year. In the first half of the year, the company successfully signed large orders such as 3000 vehicles from Saudi Arabia, 280vehicles from Russia and 70 vehicles invited by the Malaysian government. From January to June, the company exported a total of 985 passenger cars and chassis, with sales revenue of 310 million yuan, an increase of 278% over the same period last year. Among them, the company signed a contract with Saudi Hafir Transportation Company on May 4th for the sale of 3000 school buses with a total value of 990 million yuan. Accounted for 30% of the company's sales in 2010. At present, 800 units have been shipped and delivered one after another, of which 500 are included in the first half of the year. It is expected that 500 units will be delivered in the second half of the year, and the remaining 2000 units will be delivered by May next year, with full orders in the future, providing a strong support for next year's performance.
Targeted additional issuance to increase production capacity. The company's previously disclosed private placement plan, which intends to issue 45 million shares at no less than 10.20 yuan per share, raising 518 million yuan to invest in the expansion of new energy vehicles and key powertrain manufacturing, R & D integration projects, has been approved by the CSRC. The construction period of the project is three years. After it is completed and put into production, it can form an annual production capacity of 6000 new energy buses and 12000 sets of new energy bus key powertrain. It is estimated that after the project reaches production, the annual net profit will increase by 239.5666 million yuan, which is equivalent to EPS0.68 yuan in terms of equity after additional issuance.
The focus is still on the new energy bus. The company's pure electric bus operation number is about 400, and the operation condition is the leading in the world; the gross profit of new energy bus is more than 20%, which is higher than that of domestic counterparts; in the first half of the year, the mass production of vehicle controller and the software development of vehicle online diagnosis system were completed, and the whole vehicle control strategy has been gradually used in batch on new energy bus.
Profit forecast and rating. It is estimated that the company's earnings per share from 2011 to 2013 are 0.3,0.39 and 0.52 yuan respectively, and the corresponding dynamic P / E ratios are 36 times, 28 times and 21 times respectively according to the closing price on August 24, 2011. The valuation is slightly higher than that of other companies in the industry, and the "overweight" investment rating is maintained, considering that the company is in a period of rapid growth.
Risk hint. The progress of the fund-raising project is lower than expected; the price of major raw materials has risen sharply.
