From January to June 2010, the company achieved operating income of 324 million yuan, an increase of 33.25% over the same period last year, an operating profit of 61.35 million yuan, an increase of 32.29% over the same period last year, and a net profit of 53.0301 million yuan belonging to the parent company, an increase of 31.16% over the same period last year, realizing EPS0.43 yuan. Medium-term distribution plan: 1.00 yuan (including tax) for every 10 shares.
With the rapid recovery of the machine tool industry, the company's operating income has increased significantly. During the reporting period, the market of the machine tool industry at home and abroad showed a momentum of restorative growth. From January to June, the output of metal cutting machines in China reached 336000, an increase of 25.7 percent over the same period last year, and the output of CNC machine tools reached 92000, an increase of 50.8 percent over the same period last year. The growth rate is higher than the average level of the machine tool industry.
The company's product orders are sufficient, and the production lines of all kinds of machine tools are basically in full-load production. The company sold 260.91 million yuan of CNC machine tool products, an increase of 34.98% over the same period last year. Sales of ordinary machine tool products totaled 51.25 million yuan, an increase of 74.15% over the same period last year.
CNC machine tools will still maintain a rapid growth rate. During the reporting period, the company's sales revenue from CNC machine tools accounted for 80.81% of the main revenue. In the next few years, with the construction and technical transformation of large-scale projects such as nuclear power, petroleum, chemical, and marine engineering in China, the demand for large-scale equipment will continue to increase. The company's development plan is mainly around large-scale precision CNC machine tool products, which have relatively small market competition and high added value. We believe that with the rapid development of our nuclear power construction in the next 10 years, the demand for large CNC machine tools suitable for nuclear power equipment processing will increase rapidly.
Product structure optimization and technology upgrading lead to the increase of gross profit margin. During the reporting period, the company mainly engaged in comprehensive gross profit margin of 32.84%, an increase of 0.12 percentage points over the same period last year. The main reason for the increase in gross profit margin is that the sales of CNC machine tools, the company's leading products, account for 80.81%, and its gross profit margin is 36.81%, an increase of 0.49 percentage points over the same period last year.
Actively lay out the field of precision parts of nuclear power and establish a complete industrial chain. The company plans to invest 300 million yuan to set up Weihai East China Nuclear Power equipment Co., Ltd., which is mainly engaged in the processing and manufacturing of heavy precision parts and complete sets of equipment for nuclear power, petroleum, chemical and marine engineering. The company's main business forms a relatively complete industrial chain with East China heavy Industry, and builds up the most advanced and strong production capacity of heavy precision parts and complete sets of equipment production base in the world.
Profit forecast and rating. The company actively to large, heavy precision CNC machine tool layout, to adapt to China's machine tool industry to large-scale, heavy direction of development trend, we expect the company from 2010 to 2012 to achieve earnings per share of 1.12,1.43,1.82 yuan, respectively, according to the previous trading day closing price calculation, the company's 2011 dynamic PE is 30 times, we maintain the company's "overweight" rating.
Risk hint. 2) the risk that orders for CNC grinders of downstream high-speed rail decline more than expected; 2) the adverse impact of the slow progress of the private placement project.