In the first three quarters of 2013, the company achieved operating income of 1.798 billion yuan, an increase of 32.7% over the same period last year; operating profit of 138 million yuan, an increase of 74.84% over the same period last year; net profit belonging to the owner of the parent company was 118 million yuan, up 76.48% over the same period last year; and basic earnings per share was 0.18 yuan. Diluted earnings per share is 0.18 yuan.
The performance has entered the upward channel. The company is a leading construction enterprise in Xinjiang controlled by Urumqi SASAC, and its business mainly includes municipal infrastructure construction, real estate development business, new materials and water supply business. Infrastructure construction and real estate are the company's main sources of income. Benefiting from the smooth progress of the company's engineering projects in the third quarter, the company's revenue in the first three quarters was 9.74 percentage points faster than that in the first half of the year, and the growth rate of net profit turned from negative to positive to 76.48%. The main reasons why the growth rate of net profit is much higher than that of revenue are: 1. The company's gross profit margin steadily increased by 0.25 percentage point to 18.01%. The corresponding write-off provision for bad debts caused the company to suffer an impairment loss of assets of-19.4576 million yuan, compared with-1.3731 million yuan in the same period last year.
The advance payment indicates that the real estate sector has a bright future. During the reporting period, the company received 946 million yuan in advance, an increase of 257.03% over the same period last year, mainly due to the increase in prepaid housing payments received by subsidiaries. As the company has been mainly responsible for the government indemnificatory apartment in the past two years, and the real estate projects developed by the company are basically concentrated in 2012 and 2013, we expect that with the completion of the real estate projects currently under construction, the company's real estate business is expected to achieve a growth rate of more than 50%.
The approved companies of Zhendong Economic and technological Development Zone and Kashgar Economic Development Zone are expected to benefit. The State Council has successively approved the establishment of the national Xinjiang Zhendong Economic and technological Development Zone and the Kashgar Economic Development Zone. The approval of the two economic development zones will enjoy preferential policies in many aspects, so as to improve infrastructure construction in Xinjiang. As the leader of infrastructure construction in Xinjiang, the company is expected to be the first to benefit.
The largest transportation investment in the history of Xinjiang has opened. According to the plan of the Xinjiang Transportation Department, Xinjiang will complete the transportation construction task of 35 to 40 billion yuan in 2013, arranging a total of 60 highway projects with a construction mileage of 5709 kilometers, and this investment plan will be the largest in the history of transportation investment in Xinjiang; by the end of 2015, Xinjiang plans to build expressway corridors and transportation hubs in western China. The company plans to achieve an operating income of 3 billion yuan in 2013.
Profit forecast and rating. We expect the company's earnings per share from 2013 to 2015 to be 0.29,0.32 and 0.37 respectively, and based on the current stock price, the corresponding dynamic P / E ratios are 23, 20 and 18 times, respectively. Maintain the investment rating of "overweight".
Risk hint. The risk of insufficient amount of newly signed contracts and intensified import competition.