In the first half of 2013, the company achieved operating income of 440 million yuan, up 10.12% from the same period last year; operating profit of 74.0334 million yuan, down 20.2% from the same period last year; net profit belonging to the owner of the parent company was 54.6886 million yuan, down 20.63% from the same period last year; and basic earnings per share was 0.0950 yuan.
The composite gross profit margin fell. During the reporting period, the company's comprehensive gross profit margin was 40%, down 2.92 percentage points from the same period last year. As can be seen from the breakdown of the products, the gross profit margin of the company and the source enterprise square during the period was 30.65%, a decrease of 3.09 percentage points over the previous year; the gross profit margin of the Heyuan Fuju project was 54.58%, a decrease of 8.15 percentage points over the previous year; and the gross profit margin of the Heyuan Xiangju project was 35.51%, an increase of 1.78 percentage points over the previous year.
The debt ratio is high. At the end of the period, the company's book currency funds were only 50 million yuan, down 85.16% from the same period last year; the company's asset-liability ratio was 85.9%, and the real asset-liability ratio excluding accounts received in advance was 82.82%, an increase of 7.1% over the same period last year. The company's long-term financial leverage is higher than the industry average.
In the real estate business. During the reporting period, the company's indemnificatory housing project Pengpu Phase 10, Block C Phase II and Qiaodong Phase II project progressed smoothly, and the facade, installation and supporting work progressed steadily; the commercial housing project Guangfulin project focused on the facade construction of the first phase of the project, as well as the completion of the clubhouse and model section of the community, providing conditions for the pre-sale of the project. During the period, the company's real estate sales recovery funds of about 373 million yuan.
The salt lake mining industry is carrying out the basic work before it is put into production. The company has stepped up the development of salt lake mining resources in Tibet, and the construction of industrialization test infrastructure has been carried out as planned; after the completion of the intermediate test and the determination of the development process, a tenfold expansion test has been carried out, and the industrialization test is under way.
Downstream extension project of lithium industry. During the reporting period, the company plans to invest in the lithium carbonate purification project in the Economic and technological Development Zone of Jinchang City, Gansu Province; at the same time, in Xixian New area, the company plans to cooperate with partners to develop "graphene-carbon nanotube hybrid macro preparation technology" and build a "lithium sulfur engineering center" project.
We estimate that the company's earnings per share from 2013 to 2014 will be 0.16 yuan and 0.19 yuan respectively. According to the closing price of 12.30 yuan on August 27, 2013, the corresponding dynamic price-to-earnings ratio is 77 times and 65 times respectively, maintaining a "neutral" investment rating.
Risk tips: uncertainty of sales settlement; uncertainty of mineral investment; risk of fluctuation of raw material prices.
