The performance has declined, and the 3-quarter report is still not optimistic. In the first half of 2012, the company realized main business income of 923.74 million yuan, down 3.39% from the same period last year, and realized operating profit of 34.14 million yuan, down 43.45% from the same period last year. The net profit belonging to the shareholders of the parent company was 33.17 million yuan, down 36.03% from the same period last year. 0.069 yuan per share.
The decline in performance is mainly due to the decline in income and gross profit margin as a result of the decline in the price of carbon black products. During the reporting period, the company sold 154100 tons of carbon black, an increase of 16.57% over the same period last year, but the sales price of carbon black was weak, with the average price falling 16.25% year-on-year, and the comprehensive gross profit margin was 16.74%, down 0.95% from the same period last year.
The third quarterly report predicts a 40% decline in performance. 60%. The company implements quarterly pricing for major customers. Since August, due to the serious insufficient operating rate of the coke industry, the price of raw materials (coal tar) for the company has risen. The rising pressure on raw materials can only be transmitted to downstream enterprises in the fourth quarter, and the performance in the third quarter is not optimistic.
The project will be put into production one after another. According to the company announcement, on July 8, 2012, Jiaozuo Longxing 2 × 35000 ton carbon black plant and tail gas comprehensive utilization project was successfully commissioned; the annual production of 35000 tons of highly dispersed silica project is 70%, and is expected to be put into production by the end of 2012. Although the company's strategic customer Fengshen shares 5 million sets / year passenger radial tire project has been put into production in the first half of the year, it is expected to support the digestion of new carbon black production capacity, and the future white carbon black market has a broad prospect, but the contribution of the project to the company's performance remains to be seen.
Profit forecast and investment rating. According to our forecast, the company's earnings per share from 2012 to 2013 are 0.15 yuan, 0.24 yuan, respectively, corresponding to August 23 closing price / earnings ratio of 41.08 times earnings, due to the relatively low prosperity of the industry, given a "neutral" rating.
Risk hints: the risk of large fluctuations in the price of coal tar raw materials; the lower than expected production and operation of the project; and the risk of boom fluctuations in the downstream industry.
