Main points of the report
Event description
Pegasus International (002210) today released its third-quarter 2013 report that the company's operating revenue in the first three quarters was 16.605 billion yuan, an increase of 154.38 percent over the same period last year, of which revenue was 16.757 billion yuan in the third quarter, an increase of 149.76 percent over the same period last year. The company's operating cost expenditure in the first three quarters was 16.457 billion yuan, an increase of 60% over the same period last year, of which the operating cost in the third quarter was 6.656 billion yuan, an increase of 152.67% over the same period last year. During the reporting period, the company realized a net profit of 89.2971 million yuan and an EPS of 0.22 yuan, an increase of 46.67% over the same period last year, of which the net profit of 29.53 million yuan and EPS of 0.07 yuan were realized in the third quarter, an increase of 133.33% over the same period last year.
Event comment
The regulation of entrepot trade is good for a short time, and the revenue growth rate is still strong. Re-export copper trade and re-export aluminum trade are the main support for the company's strong growth in the third quarter. Short-term stimulus may result from re-export copper and aluminum trading into a new regulatory cycle, small institutions have problems with banking cooperation, promoting the transfer of customers to companies with a long history of international import, export and capital settlement, such as Pegasus International.
Small profits and quick turnover, negative gross profit growth shows low profitability of the business. Coal and entrepot trade are businesses that continue to pull down gross profit margins. 1) the narrowing of coal price spreads further reduces the gross profit margin space of the company's coal trade implementation business. 2) entrepot trade business because the company is not the actual financing demand side, transfer service fee spread space is very small, mainly depends on the transaction volume, therefore, although the company income growth rate is extremely high, but the decline of gross profit items can not be stopped.
Coal business shrank to reduce sales fees, re-export financial services margin increased interest income, resulting in short-term year-on-year performance improvement of 100 million. The total cost during the company period was-14.54 million yuan, a decrease of 78.34% compared with the same period last year. The company's re-export trade this year does not require sales expenses, and the large amount of excess margin increases interest income, which is completely different from the direction of business cash flow in the same period last year.
The new entrepot trade model is not sustainable, the contribution of the new project performance is unknown, and the "cautious recommendation" is maintained. We believe that the growth rate of the company's performance in the past two years is occasionally large. Half of the growth in 12 years comes from 11 years of adjustment, and there is also partial adjustment in 13 years. At present, the business model of entrepot trade is highly uncertain and pure financing is functional, and too few industrial customers lead to its similar channel business. Coupled with the continued strengthening of supervision, we believe that this absolute decline in gross profit will continue next year, but the year-on-year reduction in fees will not occur, and the high growth in year-on-year performance is difficult to foresee under the current fundamentals. From 2013 to 15, the EPS is expected to be 0.26,0.29 and 0.38 yuan respectively, maintaining a rating of "cautious recommendation".