In the first quarter of 2012, the company achieved operating income of 679 million yuan, down 14.49% from the same period last year; operating profit was 32.35 million yuan, down 44% from the same period last year; and the net profit belonging to the owner of the parent company was 30.82 million yuan, down 31.8% from the same period last year, achieving basic EPS0.056 yuan.
The trough of profit is over. The company's main business is cardboard, the industry has a strong periodicity.
The recession of the global economy and the continuous decline of the Chinese economy have led to a quarterly decline in corporate revenue. during the reporting period, corporate revenue decreased by 17.7% month-on-month and 14.5% compared with the same period last year. The relative rigidity of fees increased the expense rate by 1.9 percentage points to 11.2 per cent year-on-year, of which the financial expense rate increased by 1 percentage point and 4.6 per cent. From the perspective of profit, the company's operating profit in the first quarter was significantly better than the loss of 16.39 million yuan in the fourth quarter of last year, with a profit margin of 4.8%. We believe that the trough in the company's profit is in the fourth quarter of last year. The improvement in performance in the first quarter of this year is caused by the inventory cycle of raw materials and products. At present, there is no substantial improvement in the macro-economy, and it is difficult to look forward to the further improvement of the company's operating performance. It should be pointed out that the company's main raw materials are waste paper, with half of domestic procurement and half of international procurement. In terms of the global supply and demand pattern of waste paper, we think that the medium-and long-term upward trend of waste paper prices is difficult to change, and the company's cost pressure is still large.
Look at the future. 1. The non-public offering stock project has a good prospect of producing 68000 tons of green environmental protection recycled household paper, but the initial channel cost may be larger and the performance will be embezzled. two。 Zhejiang Shapu Aisi Pharmaceutical Co., Ltd., a subsidiary of the company, has entered a listing guidance period, with a share participation ratio of 20%. The listing of the participating company is expected to become a catalyst for the stock price. The prosperity of the industry is currently at a low ebb, and it is more likely to rise in the future.
Profit forecast and investment rating. We predict that the company's EPS from 2012 to 2013 will be 0.39 yuan and 0.51 yuan respectively, and the current stock price will be rated neutral with a corresponding PE of 17.72X and 13.55X, respectively.
Risk hint. 1. Domestic demand shrank further; 2. The price of waste paper has risen sharply.