Brief comments on performance and announcement:
Feilida released the third-quarter report in 2014, from January to September 2014, the company achieved operating income of 2.231 billion yuan, 40.86% compared with the same period last year; the net profit belonging to shareholders of listed companies was 32.273 million yuan, down 27.76% from the same period last year. In the third quarter of 2014, the company achieved operating income of 732 million yuan, an increase of 25.22% over the same period last year, and the net profit belonging to shareholders of listed companies was 12.4826 million yuan, an increase of 13.30% over the same period last year.
Business analysis:
Costs are rising rapidly and gross profit margin continues to decline: in terms of revenue, the company's operating income grew rapidly in the first three quarters, with an increase of more than 40% over the same period last year, mainly due to the rapid growth of trade enforcement business.
In terms of cost, the product structure was transferred from brands to ODM manufacturers, resulting in excessive growth of operating costs and rising costs such as manpower and energy, resulting in a continued decline in gross profit margin. The company's overall gross profit margin in the first three quarters was 12.91%, a decrease of 6 percentage points compared with the same period last year, a new low. The gross profit margin in the third quarter was 12.59%, nearly 3% lower than the same period last year, which was basically the same as in the second quarter.
Investment income has a significant impact on the third quarter results. In August this year, the company transferred its 33% stake in Chengdu Asia-Europe Train Logistics Co., Ltd. to Chengdu Weilong Logistics Co., Ltd for 9.9 million yuan. according to our estimation, the transaction brought the company a net profit of about 6.7 million yuan. the contribution to the third quarter net profit is more than 50%.
Business volume is expected to gradually stabilize, looking forward to business transformation. According to the statistics released by Gartner, global PC shipments in the third quarter of 2014 were 79.4 million units, down 0.5% from the same period last year. The growth of the company's business volume recovered in the third quarter, with better performance in areas such as Kunshan and Chongqing. In the future, the experimental zone of deepening cooperation between the two sides of Kunshan and the first phase of Rongda Logistics Park in the fourth quarter will bring opportunities for the development of the company, and the transformation of the company is worth looking forward to.
Considering that the company's performance has declined significantly, we have lowered the EPS for 14-16 years to 0.25,0.29,0.36 yuan respectively, corresponding to the previous stock prices of 55x14PE, 47x15PE and 38x16PE, the company's performance is in the doldrums, but there will be a bright spot of transformation in the future and maintain the "overweight" rating.
