In 2009, the company achieved operating income of 1,813 million yuan, an increase of 43.88% over the previous year, and net profit attributable to shareholders of the parent company was 165.379 million yuan, a decrease of 43.821,000 yuan from 2008, and a decrease of 72.60% over the previous year. Basic earnings per share were $0.01.
The actual controller of Jinbin Development is the Tianjin Municipal People's Government, and the majority shareholder is Tianjin Teda Construction Group. Most of the company's projects are located in Tianjin's Binhai New Area, and regional planning will also bring opportunities to the company's real estate business.
The company's three major business components: real estate sales, industrial plant leasing, and product sales.
Looking at the company's main business revenue and profit composition this year, industrial plant rent revenue was 106 million yuan, accounting for 5.87% of main business revenue; gross profit was 81.96%, and gross profit accounted for 25.28% of main business profit; real estate sales revenue was 907 million yuan, mainly sales revenue from projects such as Jiezuo Business Center, Hangu Tianrun Xinyuan, Xiqing Villa, etc., accounting for 50.04% of the main business revenue, gross profit of 26.49%, and gross profit accounted for 69.68% of the company's main business profit. Together, the two accounted for 55.91% of the company's main business revenue, accounting for 55.91% of the company's main business revenue. Profit from the main business 94.96% However, product sales revenue was 739 million yuan, accounting for 40.77% of the main operating income, and gross margin was only 0.54%, which contributed very little to the performance.
All of the profit came from the transfer of 50% of the shares of Guangdong Jinbin Real Estate Development Co., Ltd. to obtain an investment income of 60 million yuan. After excluding investment income, operating profit was negative. The main reasons were: 1. The gross margin was low; the main reason was that the gross margin of product sales was low and accounted for a large share of operating income, which lowered the company's overall gross profit margin; 2. Gatiadu prepared 25.12 million yuan for impairment of company goodwill; 3. Expenses for the period were high. In particular, financial interest expenses reached 175 million yuan, which greatly affected the company's performance.
2010 Company Operation Plan: Achieving consolidated main business revenue of 2,877 million yuan, with total planned operating, management and financial expenses totaling 425 million yuan. The revenue mainly comes from the Binhai Investment Service Center's confirmation of transfer proceeds of 200 million yuan and the completion and settlement of the second phase of the Binhai International Project. Accounts received in advance at the end of the period were 842 million yuan, a large year-on-year increase, but there is still a big gap with the operating target of 2,877 million yuan.
Financial pressure is high, and financial expenses remain high. The balance ratio at the end of the period was 68.14%, an increase of 7.02 percentage points over the previous year; first, because the company completed issuing 700 million yuan of corporate bonds in 2009, the issuance interest rate was 7.2%; second, accounts received in advance increased. The balance ratio after excluding prepaid accounts was 58%, which is at a high level in the industry. The company needs to improve its asset structure and reduce financial expenses as soon as possible.
We forecast the company's earnings per share for 2010 and 2011 to be 0.06 yuan and 0.09 yuan respectively. According to the company's recent closing price of 6.19 yuan, the corresponding dynamic price-earnings ratios were 96 times and 69 times, respectively. The valuation is high, and the “neutral” rating is maintained.
