In the first quarter of 2013, the company achieved operating income of 131 million yuan, down 46.31% from the same period last year; operating profit loss of 9.7417 million yuan (15.5938 million yuan in the same period last year); net profit loss of 9.3568 million yuan belonging to the owner of the parent company (10.04 million yuan in the same period last year); basic earnings per share-0.0160 yuan.
The decline in revenue expanded and the gross profit margin remained negative. The company is one of the leading enterprises in China's plastic packaging film industry, the main products are BOPP packaging film, BOPET film, CPP film, capacitive film. In 2012, due to the obvious downward trend of domestic and foreign industry economy, low downstream market demand, fierce domestic sales competition in the same industry, increasing overcapacity, the company's product sales and selling prices declined to varying degrees, at the same time, after the new capacity was put into production, due to the low output rate, fixed costs could not be effectively diluted, resulting in a significant decline in the profitability of the company's products. In the first quarter of 2013, the company's single-quarter operating income fell to 46% compared with the same period last year, while the comprehensive gross profit margin was-0.4%, down 9.4 percentage points from the same period last year, indicating that the decline in sales of the company's main products and low prices are still continuing. the macroeconomic and industry competition environment faced by the company is still not good.
The provision for impairment does improve costs, and the performance has yet to be reversed, waiting for supply and demand to pick up. Combined with the market conditions of raw materials and products, the company prepared 22.92 million yuan for impairment of raw materials in inventory, products and goods in stock at the end of last year. We believe in the annual report that: with the preparation, the cost pressure of the company's products in 2013 is expected to be reduced, which has a certain positive effect on the gross profit margin. Judging from the quarterly report, the gross profit margin is close to the point of profit and loss, which proves our judgment. However, the fundamental improvement in future performance still awaits the rebound of the domestic and foreign film market. The company expects to continue to lose money on net profit from January to June.
The production period of fund-raising projects has been delayed, and the process of industrial upgrading and diversification may be lower than expected. According to the national development orientation, the company is actively carrying out system integration and industrial upgrading of the existing production capacity. However, according to the information disclosed in the annual report, the 8000 tons of high-temperature ultra-thin capacitive film construction projects with an annual production capacity of 8000 tons and the new functional BOPET packaging film construction projects with an annual production capacity of 60, 000 tons are expected to reach the intended use state in September and December 2013, respectively. The lithium battery ion isolation membrane project with an annual production capacity of 60 million square meters and the solar cell packaging material project with an annual production capacity of 120 million square meters are expected to be put into production in December 2013 and November 2014, respectively, both of which are later than the previous estimated time. If the implementation progress of the project is lower than expected, it is bound to have a negative impact on the implementation of the company's overall strategic planning and the corresponding performance contribution.
Profit forecast and investment rating: take into account the company's current operating losses, do not give profit forecasts. Maintain the company's "neutral" investment rating.
Risk tips: 1) the risk that the plastic processing industry expands rapidly and the competition in the industry exceeds expectations; 2) the prospect of fund-raising projects is not as good as expected.