Main points of investment
The annual report announced that the profit was slightly lower than the expected annual operating income of 581.1844 million yuan, an increase of 7.06% over the same period last year. The net profit for the whole year was 51.2487 million yuan, down 24.42% from the same period last year. To distribute RMB 0.50 cash dividend (including tax) and 2 bonus shares (including tax) to all shareholders; to increase 5 shares for every 10 shares to all shareholders.
Comments: special polyacrylamide for oil production is still the source of steady growth, but no new breakthrough has been seen yet.
The profit was slightly lower than we expected, mainly because the raw material acrylonitrile was in a decline cycle, so the gross profit margin fell more than expected.
The company sold 40511.13 tons, of which the sales of anionic polyacrylamide for oil production increased by 3295.06 tons over the previous year, an increase of 15.02% over the same period last year.
The company's sales to Shengli Oilfield were 372.21 million yuan, an increase of about 10% compared with 338.78 million yuan in 2011. it is still the company's largest stable source of income growth, with a market share of more than 55% in Shengli Oilfield. In addition, sales to Tianjin Dagang Bingang Group Bohong Petrochemical Co., Ltd. have achieved certain growth. However, the company has not yet seen a substantial breakthrough in other oilfields.
The company's development prospect: pay attention to the new profit growth point
Guangdong Baomo Zhuhai project with an annual production capacity of 20,000 tons for the Pearl River Delta market and Tianjin Bohong project with an annual production capacity of 20,000 tons of anionic polyacrylamide for Petrochina Company Limited market are under construction.
Pay attention to the substantial breakthrough in the market share of the company's products in Dagang, Changqing, Yanchang and other oilfields.
Follow the progress of Dongying Lida Pharmaceutical Co., Ltd.
Pay attention to the development of the company's oil service industry related to unconventional oil and gas, such as low permeability reservoirs, heavy oil, shale oil and gas, etc.; this market area has high customer concentration, large consumption, high technical and market barriers.
Profit forecast and valuation
From 2013 to 2015, the EPS was 0.19, 0.25, 0.29 yuan respectively. Considering 1, the rigidity growth of the company's three production auxiliaries, 2, the possibility of entering other large oilfields, and 3, the possible breakthrough of the company's fracturing fluid, we maintain the company's holding rating. At the same time, we will closely monitor the progress of the company in new business areas.