In 2013, the company realized operating income of 1.455 billion yuan, down 9.84% from the same period last year; operating profit of 29.41 million yuan, down 2.85% from the same period last year; net profit belonging to the parent company was 45.82 million yuan, up 2.89% from the same period last year; and earnings per share was 0.09 yuan, in line with expectations. The profit distribution scheme is 0.4 yuan (including tax) for every 10 shares.
Of this total, operating income in the fourth quarter was 438 million yuan, an increase of 9.00% over the same period last year; operating profit was-5.07 million yuan, reducing losses by 37.22 million yuan over the same period last year; net profit belonging to the parent company was 10.45 million yuan, reversing losses compared with the same period in 2012 (- 41.71 million yuan); earnings per share were 0.02 yuan.
Operating revenue fell 9.84% from the same period last year. In 2013, the company's main product transportation equipment and support equipment declined, and the income of mining equipment, which accounted for a relatively small share of the revenue, increased greatly, and the acquisition of Shandong Xinchuan contributed a portion of the income of post-press machinery. Specifically, the revenue of transportation equipment was 735 million yuan, down 3.80% from the same period last year, accounting for 51.11%; the income of supporting equipment was 443 million yuan, down 35.61% from the same period last year, accounting for 30.80%; the income of mining equipment was 56.64 million yuan, an increase of 76.08% over the same period last year, and the proportion of income was only 3.94%; the income of post-press equipment acquired by the company was 49.96 million yuan, accounting for 3.47% of the total revenue.
The gross profit margin of various products fell, and the comprehensive gross profit margin fell by 2.31 percentage points. In 2013, the company's comprehensive gross profit margin decreased by 2.31 percentage points to 17.99%, of which: the gross profit margin of transportation equipment decreased by 1.44 percentage points to 19.91%; the gross profit margin of supporting equipment decreased by 5.58 percentage points to 10.59%; the gross profit margin of mining equipment decreased by 24.42 percentage points to 20.87%; and the gross profit margin of post-press equipment was 27.57%, higher than the company's comprehensive gross profit margin.
It will take time for the coal machine to recover, and the company will expand its non-coal sector to reduce its dependence. At present, China's coal price is in a historical position, and under the background of slow economic recovery and the country changing the structure of energy consumption, we still need to wait for the price to bottom and rebound. The continuous depressed demand in the lower reaches of coal leads to increasingly fierce competition in the coal machinery market, and the downward trend of company revenue and gross profit margin will continue. In recent years, in addition to strengthening the competitiveness of the domestic coal machinery industry, the company has actively expanded foreign markets and non-coal markets and made some progress.
The acquisition company, Shandong Xinchuan, entered the post-press market. In 2013, the company used the listing to raise 64.675 million yuan to acquire and increase its capital in Shandong Xinchuan, holding a 60% stake, and completed the industrial and commercial formalities on September 30th. Shandong Xinchuan mainly engaged in post-printing process packaging machinery and equipment, flattening die-cutting machine, stamping die-cutting machine annual production and sales of 450 sets, sales volume and market share ranked first in the industry. According to the performance commitment at the time of the acquisition, the recurrent net profit of Shandong Xinchuan from June to December 2013, 2014 and 2015 is not less than 4.61 million yuan, 8.95 million yuan and 11 million yuan respectively. From October to December 2013, Shandong Xinchuan realized a consolidated income of 45.66 million yuan and a net profit of 2.09 million yuan, in line with the performance commitment.
Develop the international market and new service model of coal machinery, and achieve results in expanding the non-coal field. In 2013, the company actively expanded the international market and achieved overseas income of 120 million yuan, an increase of 66.66% over the same period last year, accounting for 11.97% of the total revenue, a significant increase from 8.55% in 2012. The company has strengthened the service strategy, carried out coal mining with equipment, coal mine trusteeship and other forms of services to achieve business value-added. In addition, the company develops non-coal business, expands engineering oil cylinders, chains and other products from simple coal machinery products to automotive, marine and other business, successfully develops 30 kinds of automobile telescopic sleeve cylinders and successfully promotes them to the market; subsidiary Maike Construction Machinery takes intelligent logistics automation production system as a starting point to enter environmental protection equipment and other industries.
Phased achievements have been made in the research and development of aero-engines and drones. The aero-engine has signed a joint venture agreement with the Institute of Engineering Thermophysics of the Chinese Academy of Sciences, and is now carrying out the relevant procedures for company registration, and the engine is doing relevant experiments with the demand side. The prototype structure design and tooling mold design of the UAV project have been completed, and two experiments have been put into operation to verify the production of the prototype. It is expected that the first flight conditions will be reached around August, and the aircraft will be selected for the first flight experiment.
Laser equipment manufacturing continues to develop. The company has developed a new generation of high-efficiency and energy-saving automatic laser manufacturing system and its affiliated subsystems, which have been applied in coal machinery, petroleum, iron and steel, electric machinery repair and other aspects, so that the company's core competitiveness has been further enhanced.
Earnings forecast and rating: we expect the company's earnings per share from 2014 to 2016 to be 0.09 yuan and 0.11 yuan and 0.15 yuan respectively. Based on the latest closing price, the corresponding dynamic price-to-earnings ratio is 66 times, 51 times and 38 times respectively, maintaining the company's "neutral" investment rating.
Risk tips: (1) coal prices remain low; (2) non-coal business expansion is not as expected.
