The company's turnover in 13 years was significantly lower than the market and our expectations, due to a sharp decline in product sales, resulting in a sharp drop in gross profit by 53%. At the same time, the operating expenses of various periods also increased in line with the official investment in the new areas. however, the management said at the meeting that this year had a good start: 150,000 units were received in the first quarter of 14 years, and the number of units exceeded 113,000 units in the first half of 13 years. In addition, 170,000 copies of the list have not been completed in 14 years, and the company currently has 320,000 units on hand, all of which will be delivered in 14 years. In the past 14 years, the company has made a good start, but the cost of service is too high, and the increase in turnover rate is a problem that the company has to face. It has been downgraded to "neutral", waiting for the emergence of catalysis: a list of large projects. The score of EPS in 14 / 15 was 0.14 0.28 respectively. Click the header to HKD2.30, and the target mapping PB in 2014 is 0.5x.

A profit warning has been issued, but the 13-year operating profit is still much lower than expected. Over the past 13 years, 330,000 tons of welded pipes were delivered, with an income of 2.03 billion yuan, down 48.4 percent from the same period last year, a gross profit of 313 million yuan, down 53.1 percent from the same period last year, and a gross profit margin of 15.4 percent, 1.5 percentage points lower than the same period last year, maintaining a reasonable level. realized profit of 415 million yuan, down 87% from the same period last year, and earnings per share was 0.04 yuan. The main reasons for the sharp decline in profit are as follows: 1) the decrease in the cost of raw materials leads to a sharp decline in product sales and a decline in the fixed gross profit margin; 2) the increase in service cost expenditure.

The decline in the cost of raw materials leads to a decline in simple profits. The fixed gross profit margin has a negative effect when the situation remains flat or rising. However, due to the sharp drop in raw materials, especially sheet metal, and the delivery of urban natural pipe projects with low prices in the list last year, sales of LSAW direct welded pipes, the company's main product, fell sharply by 23.1% to 5993 yuan per barrel.

The expense during the period will increase the expense of the company. 1) due to the impact of large-scale sales projects, sales cost 48.6% to 131 million yuan; 2) during the period, the port and Zhuhai production bases were officially invested, coupled with the increase in the use of science and technology research and development, as a result, the use of management increased significantly by 553% to 337 million yuan. 3) more than 50 million yuan of land use transfer in Panyu increased the rate of income this year to 49.4% from 18.5% last year.

The good news will show that 14 years are off to a good start. The company's management announced at the fair that the company's new sales volume in the first quarter was 150,000 units, exceeding the 113,000 units in the first half of 13 years, most of which were LSAW with high gross profit. In addition to the 170,000 units left at the end of last year, the company currently has 320,000 units on hand, and the 320,000 orders are scheduled to be delivered this year. In 2013, the company delivered a total of 336,000 units.