A brief comment on the pick-up in the performance in the third quarter of February and the successful turnaround since the fourth quarter of last year, the prosperity of the aluminum processing industry has declined significantly, coinciding with the conversion of the company's 50,000 tons of high-precision aluminum foil production line, insufficient operating rate of new capacity, and a significant increase in production costs per unit product. at the same time, the increase in financial expenses led to a significant decline in profitability. The company reported losses in the fourth quarter of last year and the first quarter of this year, and the loss gradually expanded. In the third quarter of February, with the seasonal warming of demand, the operating rate of new capacity increased; on the other hand, the elimination of the upside-down of domestic and foreign aluminum prices and the improvement of export profits in the third quarter led to a pick-up in performance and a successful turnaround.
The gross profit margin of the company's main business rose month-on-month in the third quarter, while the expense rate decreased during the period, driving operating profit up 6.7% month-on-month, while net profit decreased instead of rising, mainly due to the difference in non-operating income changes between the two quarters.
The company expects the full-year net profit in 2012 to reach 2008.88-23.6339 million yuan, that is, the fourth-quarter performance will increase significantly compared with the same period last year, or become the highest performance for the whole year.
Profit forecast and rating we forecast that the company's EPS from 2012 to 2014 will be 0.13,0.17 and 0.24 yuan, respectively. The company's fourth-quarter results are expected to grow rapidly, and there are trading opportunities in the short term. However, as domestic and foreign demand has not yet picked up significantly, performance growth is expected to remain under pressure until 2014. The current valuation level is on the high side, giving a "neutral" rating for the first time.