Main items:
The company released its results for the first three quarters, which we commented on.
Main points:
Due to last year's high base, revenue fell-15.87% in the third quarter compared with the same period last year.
From January to September 2013, the company achieved a year-on-year increase of 24.39% in operating income, 18.26% in gross operating profit,-166.41% in main operating profit, and-782.06% in net profit attributed to the owner of the parent company. Earnings per share (diluted)-0.16 yuan. From the single quarter of July to September, the company achieved total operating income of 125.74 million yuan, an increase of-15.87% over the same period last year, which was slower than that of January-September, accounting for 26.35% of the total revenue in January-September.
The increase in management expenses leads to a rapid decline in operating profits
There was a large increase in expenses during the company period. the income ratios of business tax and additional, sales expenses, management expenses, financial expenses and asset impairment losses were 1.32%, 4.90%, 28.38%,-0.36% and 0.71%, respectively, totaling 34.95%. It was 0.01 percentage points higher than that in the same period of the previous year (34.22%). Among them, sales expenses and management expenses increased by 32.25% and 36.57% respectively, mainly affected by the rise in salary costs. Combined with the decline in other operating income and other factors, the company's operating profit in the first three quarters suffered a loss of 48.25 million yuan, which was significantly lower than that of 14.19 million yuan in the same period last year.
The company has a high valuation and has a certain valuation risk.
At present, the company's stock price is at an all-time high, reaching 13.78 yuan, the price-to-sales ratio (TTM) is 4.74 times, and the valuation is high. It is estimated that the dynamic ROE for the whole year is 1.99%, and shows a downward trend. At present, the price-to-book ratio is 5.3 times, which is high. There is a risk of overvaluation.
Investment advice:
We give the company operating income from 2013 to 2015 to 823.96, 1029.96 and 1287.45 million yuan, up 15%, 25% and 25% year-on-year. The net profit attributable to the parent company is 14.42,32.09 and 46.34 million yuan respectively, up-63.50%, 122.52% and 44.44% year-on-year. Earnings per share (diluted by the latest share capital) are 0.05,0.12 and 0.17 yuan, respectively. Valued at 120 times dynamic price-to-earnings ratio in 2014, the company is given a stock price target of 14.4 yuan for the next six months.
Therefore, for the first time, the company has been given a "neutral" investment rating for the next six months.
