In the first quarter of 2012, the company achieved operating income of 244 million yuan, down 20.91% from the same period last year; operating profit of 15.59 million yuan, down 45.60% from the same period last year; net profit belonging to the owner of the parent company was 10.04 million yuan, down 49.83% from the same period last year; and basic earnings per share was 0.017 yuan.
Both income and gross profit margin fell. The company is one of the leading enterprises in China's plastic packaging film industry, mainly engaged in BOPP, BOPET, CPP and capacitive film production and sales. During the reporting period, the overall impact of the complex international and domestic economic situation on the company has not been eliminated, and product sales and selling prices continued to decline. the total operating income for the current period was 244 million yuan, a decrease of 20.91% over the same period last year, which was the second consecutive quarter of decline. at the same time, the gross profit margin fell 8.9 percent year-on-year to 9.0 percent. The double decline in revenue and gross profit margin made the gross profit margin of the main business only 22 million yuan. Less than half what it was in the same period last year.
All profit indicators fell compared with the same period last year. Due to the rapid decline in gross profit of the main business, the company's profit base has been greatly reduced. The company's operating profit, total profit and net profit attributable to the owner of the parent company have decreased by 45.60%, 48.74% and 49.83% respectively compared with the same period last year.
We will speed up industrial upgrading. According to the national development orientation, the company is actively carrying out systematic integration of existing production capacity. At present, the company has completed the transfer of two BOPP mainlines and two sets of imported slitting machines and other auxiliary equipment in Chengxi plant, starting from the traditional packaging field into lithium battery diaphragm, capacitive film and other high-tech, new material film fields; in addition, the company completed directional additional issuance in 2011, and the annual output of 8000 tons of high-temperature ultra-thin capacitive film project has reached the installation stage, is expected to be debugged in October 2012, and officially put into production at the end of the year. The lithium battery ion isolation membrane project with an annual output of 60 million square meters has completed all the preliminary work, and has ordered two lithium battery ion isolation membrane production lines with an annual production capacity of 13 million square meters, which has entered the substantive plant construction stage and is expected to start commissioning in October 2012. it was officially put into production at the end of the year. The solar cell packaging material project with an annual output of 120 million square meters has been in the planning and design stage, in which an EVA film project with an annual capacity of 75 million square meters has been ordered, which is expected to be debugged in October 2012 and put into production by the end of 2012; a solar cell back film production line has been ordered and is expected to be debugged by the end of 2012. The successive completion of fund-raising projects in the future will further optimize the strategic layout of the company, enhance the competitiveness of the company in the field of high-end products and contribute to performance.
Profit forecast and investment rating. It is estimated that the company's earnings per share from 2012 to 2013 are 0.08 yuan and 0.09 yuan respectively, and the corresponding dynamic price-to-earnings ratio is 93 times and 80 times respectively according to the closing price on April 25, 2012. Maintain a "neutral" investment rating.
Risk hint. 1) the risk that the plastic processing industry expands rapidly and the industry competition exceeds expectations; 2) the risk of raw material price fluctuation caused by oil price fluctuation.