Matter: Dili shares released its annual report on March 10, 14, with annual revenue of 1 billion, an increase of 34% over the same period last year, and a net profit of 80 million belonging to shareholders of listed companies, an increase of-14% EPS0.20 yuan over the same period last year. 4Q13 revenue and net profit attributable to shareholders of listed companies were 300 million and 2 million respectively, an increase of 52% and-93% respectively over the same period last year. Basically in line with the company's performance forecast issued on January 30, 14.
Peace viewpoint:
Under the influence of multiple factors, 13-year income did not increase profit: the company's 13-year income and net profit increased by 34% and-14% respectively compared with the same period last year.
The main reasons include: 1, under the influence of the "three public" consumption restriction policy, the growth rate of the industry has slowed down, and the dealer channel has been affected by the promotion of competitors such as bows and arrows, and the sales price has declined; 2, since the second half of the year, the prices of natural gas and heavy soda ash have risen; 3. Merchant super channels concentrate on stock in the second half of the year, and the corresponding fees such as entry fees are concentrated. 4. Chuzhou Crystal Cup project was put into production in mid-September, and at the initial stage of production in the reporting period, it has not yet made a positive contribution.
14 years' commitment to the main business may open a new chapter: although the company's performance has declined in the past 13 years under the influence of multiple factors, however, considering the smooth construction of the company's supermarkets, the smooth production of the Chuzhou Crystal Cup project (phase I) and the orderly progress of the plan to expand the quartz mine, it is expected that the company's main business in the past 14 years will further lay a solid foundation.
At the same time, the company will "complete the acquisition of not less than one company" as one of the 14-year key projects, which may open up market expectations for the company to expand into new areas.
Profit forecast and valuation: considering the slowing down of industry growth, the 14-and 15-year EPS is reduced from 0.53,0.69 yuan to 0.25,0.30 yuan, corresponding to the closing price of 14.78 yuan on March 10, 2014, the PE is 60 and 50 times respectively. Although the growth rate of the industry has slowed down, the company is the leader in China's daily glassware industry. It is expected that the profits of the main industry will return to stable growth on the basis of further strengthening the main business in the past 14 years, and it is expected to expand into new areas and maintain the "recommended" rating.
Risk tips: new project schedule is not up to expectations, raw material price fluctuations and so on.