In the first half of 2013, the company achieved an operating income of 415 million yuan, an increase of 0.83% over the same period last year; an operating profit loss of 9.6189 million yuan, a loss of 23.1694 million yuan compared with the same period last year; a net profit of 1.3489 million yuan belonging to the owner of the parent company, an increase of 8.98% over the same period last year; and basic earnings per share of 0.0050 yuan per share.
Operating income increased slightly. The company is mainly engaged in weaving, bleaching and dyeing, spinning and other business, 27% of the products are exported to Europe and the United States, domestic customers are mainly concentrated in Fujian, sales account for 43%, other customers outside the province account for 30%. Since 2012, due to the continued weakness of overseas markets and the decline in the growth rate of the domestic market, the overall demand of the mid-stream industry has declined and customer orders have decreased. Coupled with the sharp fluctuations in raw materials, labor and other costs and sustained growth and other adverse factors, the company's performance has declined greatly. During the reporting period, by maintaining existing customers and actively expanding new customers, the company's operating income increased slightly by 0.83%.
The increase in gross profit margin drives performance growth. During the reporting period, the company reduced production costs by strengthening on-site management, improving labor efficiency and reducing costs, while increasing the proportion of high value-added products and the decline in cotton prices, resulting in a 4.59 percentage point increase in comprehensive gross profit margin to 6.54%. Among them, the gross profit margin of the weaving business, which accounts for more than 50% of revenue, increased by 2 percentage points to 6.11% compared with the same period last year. The gross profit margin of the spinning business, which accounts for more than 20% of revenue, increased by 0.46 percentage points to 7.03%, resulting in an 8.98% year-on-year increase in net profit belonging to the owner of the parent company.
The focus of the company: 1, the company is located in printing and dyeing backward production capacity concentrated and polluting industries. During the 12th five-year Plan period (2011-2015), the country will eliminate 5.58 billion meters of backward production capacity of the printing and dyeing industry, coupled with the promotion of the 12th five-year Plan for Energy Saving and Emission reduction, in the long run, the printing and dyeing industry will show the trend of industry integration. as an enterprise with a high level of environmental protection, the company will gain more market share. But the direct boost to the company's performance in the short term is limited. 2. According to the municipal planning of the Jinjiang Municipal Government, the Fengzhu Industrial Zone where the company is located (with a land area of about 147 mu) has been included in the scope of relocation. Although the relocation work has been started, the specific relocation plan has not yet been determined. If the scheme is determined and implemented, it will not only obtain compensation, but also help the company to carry out technological transformation and speed up industrial upgrading.
Profit forecast: as the company's relocation plan has not yet been determined, profit forecast will not be considered for the time being. It is estimated that the company's EPS from 2013 to 2015 will be 0.02,0.06,0.06 yuan respectively. Based on the latest closing price of 4.05yuan, the corresponding dynamic price-to-earnings ratio is 181,67 and 64 times respectively, maintaining the company's investment rating as "neutral".
Risk tips: raw material price fluctuation risk; downstream demand contraction risk.
