Event
According to the company's annual report, the operating income was 1.4862491 billion yuan, up 6.41% over the same period last year; the operating profit was 5.1217 million yuan, down 94.09% from the same period last year; and the net profit belonging to shareholders of listed companies was 3.4739 million yuan, down 93.93% from the same period last year. Basic earnings per share is 0.015 yuan. Every 10 shares will pay a cash dividend of 0.50 yuan (including tax), resulting in a total cash dividend of 11.55 million yuan.
Brief comment
Glass refractories started, cement and steel refractories later caught up.
The company's 2012 operating income was 1.486 billion yuan, an increase of 6.41% over the same period last year, mainly due to the establishment of East China Ruitai, the acquisition of shares in Xianggang Ruitai, and its entry into the field of iron and steel refractories. Among them, cement, glass, steel and wear-resistant and heat-resistant materials accounted for 37%, 30%, 12% and 15%, respectively. Gross profit margins are 29.48%, 23.73%, 20.61% and 15.46%, respectively. The company started with melting and casting refractories for glass kilns and has an absolute advantage in refractories for glass kilns. The high-end market share is about 40%. Due to the single production of glass kiln refractories, the cycle fluctuation is strong, the company began to enter the cement kiln refractories, and made a rapid breakthrough in recent years, the proportion of income increased rapidly, 12 years cement kiln refractory package business income increased by 17.94% compared with the same period last year. In the past 12 years, the company established Ruitai in East China and acquired shares in Ruitai of Xiangtan Iron and Steel Co., Ltd. entered the field of refractories for iron and steel, formed three major business sectors of refractories for glass, cement and iron and steel industry, expanded the service field of the company, and improved the anti-risk ability of the company.
The gross profit of glass refractory income declines, the price decreases and the cost increases.
The refractories used in glass furnaces are mainly cast zirconium corundum, cast alumina and siliceous refractories. In 2013, the company's orders for refractories for glass kilns decreased, and revenue fell by 33.74%. Mainly due to the decline in market demand for flat glass, in addition to the high demand for cast alumina in photovoltaic glass kilns, it has also dropped sharply this year. The sales price has also decreased due to the intensification of market competition. In addition, the main raw materials zircon, bauxite, magnesia and other high-level operation, labor costs and financial costs continue to rise, resulting in a decline in product sales profit margins. Smooth development of the international market
The production of the international glass market must be close to the end consumption, but the glass refractories can be purchased globally. In recent years, the consumption habit of the international market has returned from the use of plastic to the use of glass, and the daily glass market is stable. The company actively develops the international market and sells its products to more than 40 countries and regions. In 2012, the company's international market sales revenue of cast refractories for glass kilns increased by 66.65% compared with the same period last year. The international market is becoming more and more important to Ruitai. There will be relatively good international growth in the next few years. The gross profit margin of the international market is 20.30%.
The rate of expenses increased during the period.
The company's expense rate during the 12-year period was 21.79%, an increase of 3 percentage points over the same period last year. Among them, the sales expense rate increased by 1%, mainly due to the establishment of East China Ruitai and Xiangtan Iron and Steel Ruitai in this period, which requires a large investment in the initial stage of opening up the market in the field of iron and steel refractories. The financial expense rate increased by 2%, mainly due to the increase in short-term borrowing, the issuance of one-year short-term financing bonds of 150 million yuan and the long-term loan of 150 million yuan from China Construction Materials Group Co., Ltd., resulting in a larger increase in interest expenditure. Profit forecasting and investment rating companies have made a comprehensive foray into glass, cement and steel refractories. Strengthen the development of daily glass market in the glass market to reduce the adverse impact of float glass recession; actively promote the whole kiln package service in the cement and steel market to enhance the competitiveness of enterprises. We forecast operating income of 1.798 billion yuan, 2.125 billion yuan and 2.511 billion yuan from 2013 to 2015. Corresponding to EPS0.19, 0.25,0.34 yuan. Maintain the "overweight" rating.