In the third quarter of 2013, the company achieved operating income of 1.101 billion yuan, down 2.01% from the same period last year; operating profit of 67.4856 million yuan, up 52.62% from the same period last year; net profit belonging to the owner of the parent company was 13.0255 million yuan, up 21.37% from the same period last year; and basic earnings per share was 0.0723 yuan.
The decline in income has narrowed. During the reporting period, due to the continued impact of the international financial crisis, weak demand in the external market, the continuous appreciation of the RMB, rising domestic labor costs, and a large transfer of large-scale orders from customers, the volume of export trade decreased. In the first half of 2013, under the tone of "five soft landings in New China", the Shenyang real estate market is a "small household" small household sales situation is good. The sales speed of middle and high-end products and apartment products is difficult to break through, at the same time, the area that meets the income recognition conditions in the reporting period is reduced. Combined with the above company revenue fell 2.01% year-on-year, due to a slight pick-up in downstream demand, revenue decline has narrowed.
Gross profit margin boosts the company's performance. During the reporting period, the company increased the gross profit margin of the trade industry by deepening the reform of the trading system, adjusting the structure of trade products, and reducing business sales with low gross profit margin, coupled with the increase in the gross profit margin of the real estate business over the same period last year. As a result, the company's comprehensive gross profit margin increased by 3.21 percentage points to 21.83%, resulting in a year-on-year increase of 68.01% in total profit and 21.37% in net profit belonging to the parent company.
The continuous optimization and adjustment of trade structure is conducive to the improvement of performance. Due to the seasonal influence of the clothing export trade business in the company's main business, most of the export business will be completed in the second half of the year. In addition, the company insists on taking reform as the main line, strengthens the reform of the trade system, actively integrates human resources, strengthens the construction and management of professional teams, and improves the comprehensive quality of business personnel, which will further stimulate the vitality of trade operation and improve the profitability of the company.
Earnings forecast: the EPS of the company from 2013 to 2015 is expected to be 0.099,0.12,0.14 yuan respectively. Based on the latest closing price of 6.91 yuan, the corresponding dynamic price-to-earnings ratio is 73 times, 57 times and 50 times respectively, maintaining the company's investment rating as "neutral".
Risk hint: the risk of rising raw material and labor costs; the lower-than-expected risk of domestic demand recovery.