The growth of performance in 2009 is in line with market expectations.
On the 19th, the company released its annual report for 2009, with a total operating income of 1.388 billion yuan and a total profit of 180 million yuan, up 60.59% and 20.46% respectively over the same period last year. The net profit of shareholders of listed companies was 155 million yuan, an increase of 19.83% compared with the same period last year. The profit distribution in 2009 is 1.29 yuan per share, without capital reserve to increase share capital.
Wind power castings are the main driving force of performance growth, but lower the overall gross profit margin of the company.
In 2009, the revenue of power station iron castings and heavy machinery castings, which were mainly used in wind power installations, reached 3.75 yuan and 353 million yuan respectively, a substantial increase of 421.68% and 142.92% over the same period last year. However, due to the low gross profit margin of wind power castings, the proportion of wind power business with low gross margin has greatly reduced the company's overall gross profit margin by 5.15 percentage points in 2009.
Orders for wind power cast iron parts have increased significantly, and 10-year performance can be expected.
In 2009, the order signing value of the company's power station iron castings (mainly wind power) was 1.241 billion yuan, a substantial increase of 148.69% over the same period last year, mainly due to the increase in the production capacity of wind power products driven by the fund-raising project and the Wafangdian wind power project. Considering the continuous release of new production capacity, the company's 10-year performance will grow rapidly under the pull of wind power iron castings.
The performance of steel castings in power station has declined greatly, and the performance of the company has been thickened by the commissioning of large forging projects.
Affected by the slowdown in national thermal power and hydropower construction, the company's revenue from power station steel castings reached 456 million yuan in 2009, down 20.33% from the same period last year. However, due to the high barriers to entry of steel castings in power stations, the gross profit margin of this business is relatively stable.
At the same time, the company's forging project has been completed and put into production. After reaching production, the project is expected to bring annual revenue of 670 million yuan and net profit of 102 million yuan for the company. At present, the project has made little contribution to the company's performance, with revenue of 102 million yuan and gross profit of 3.48 million yuan in 2009. With the gradual release of production capacity and the launch of new products, it is expected that the forging project will significantly thicken the company's performance.
Investment advice.
Taking into account the substantial increase in orders for wind power cast iron parts and the significant increase in the company's performance in the forging project, we expect the company's EPS in 10-12 years to be 0.93,1.23 and 1.50 yuan respectively, with a corresponding PE of 26,19 and 16 times respectively, giving the company a "buy" rating for the first time.
