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When Dili released its third quarterly report for 2013, 1Q~3Q achieved operating income of 650 million, an increase of 27% over the same period last year; the net profit of shareholders belonging to listed companies was 80 million, up 30% from the same period last year (54% after deducting non-profit), with an EPS of 0.23 yuan, which is in line with the company's forecast range of 25% to 45% year-on-year growth. The company expects full-year 2013 net profit to grow by 10% to 30% year-on-year.
Peace viewpoint:
Influenced by multiple factors, 3Q performance is under pressure.
The company's 3Q single-quarter revenue and net profit increased by 16% and-64% respectively compared with the same period last year, which was slower than the 34% and 132% growth in the first half of the year.
The pressure on 3Q performance is affected by many factors, including: (1) the cease-fire overhaul of No. 2 and No. 8 furnaces in 3Q affects the income growth rate; (2) some products in the distributor channel are affected by bow and arrow promotion, and the sales price is lower than that of the same period last year, and the comprehensive gross profit margin is 6 points lower than that of 3Q12 and 2 points lower than that of 2Q13. 4. Chuzhou Crystal Cup project was put into production in mid-September, and depreciation began to be calculated in 3Q, but the performance has not been contributed in the reporting period.
Chuzhou Crystal Cup project has been put into production, adding momentum to its growth.
As the leader of domestic daily glassware, structural upgrading promotes the company's long-term growth. The Chuzhou Crystal Cup project was officially put into production in mid-September 2013. The project is expected to be high-end, with a gross profit margin of 45%, which will add impetus to the company's growth.
Profit forecast and valuation
3Q company is affected by multiple factors, dragging down the overall performance growth rate. Although most of the above factors are non-recurrent factors, considering the impact of bow and arrow promotion on the company's dealer channel remains to be further observed, it is prudent to assume that the 15-year EPS will be slightly reduced from 0.34,0.57,0.75 yuan to 0.30,0.53,0.69 yuan, corresponding to the closing price of 10.97 yuan on October 25, 2013. the PE is 36.3,20.8,16.0 times respectively. Considering that the company has built its own KA channel and the terminal delivery is progressing smoothly, it is expected to partially alleviate the competitive pressure faced by the dealer channel and maintain the "recommended" rating in the future.
Risk tips: lower-than-expected progress of structural upgrading, fluctuations in raw materials and fuel prices, etc.