In 2011, Yichang achieved a total operating income of 2.17 billion yuan, an increase of 16.6% over the same period last year, an operating profit of 25 million yuan, a sharp drop of 84.1% over the same period last year, and a net profit of 36 million yuan, down 73.9% from a year earlier. The income per share is 0.09 yuan. The allocation plan is 0.3 yuan for every 10 shares.
The main business growth of black electricity structures is weak, while that of white electricity structures is growing at a high speed. The growth of the company's main TV structure business is slow, with an increase of 3.6% in 11 years, compared with the pre-listing 2009 revenue of only 3.0%, and the proportion of revenue has dropped to 64.0%. CRT structure revenue continues to decline year by year as the industry shrinks, falling 82.0% in 2011 compared with the same period last year, while the alternative flat panel TV business is not growing at a high speed. White electricity structure 554 million, an increase of 66.7% over the same period last year.
Auto parts business development is slower than expected. The company has entered the auto parts market since the end of 2010, and its business revenue in 2011 was only 43.36 million yuan, an increase of 13.9% over the same period last year, much lower than expected. At the same time, in order to increase investment in auto parts R & D, R & D expenses increased by 33.92 million yuan, an increase of 85.2% over the same period last year.
Gross profit margin fell sharply by 5.6 points, of which labor costs affected about 2 points, raw materials affected 2-3 points, and depreciation increased about 0.8 points. The comprehensive gross profit margin for the whole year was 13.6%, 5.6 percentage points lower than that of 10 years, and a relatively large decline in the third and fourth quarters. On the one hand, the industry demand is depressed and competition intensifies, which is also in line with the situation of other competitors; on the other hand, some fund-raising projects began to be put into production in June, resulting in greater depreciation pressure.
The company relaxed the payback policy for some customers, the accounts receivable increased by 37.1%, and the turnover rate decreased; the sharp increase in fixed assets led to a sharp drop in turnover. Operating cash flow net outflow of 100 million yuan, fund-raising project investment led to investment cash outflow of 320 million yuan.
The future growth of the company still depends on the expansion of auto parts and white electricity. The company expects 2012 revenue of 2.5 billion yuan to increase by 15% over the same period last year, and net profit of 50 million yuan to increase by 35% over the same period last year. We expect the company's EPS to be 0.12,0.15 and 0.18 yuan respectively from 2012 to 2014. The current stock price corresponds to a high PE level, but the PB is reasonable and given a "neutral" rating.