In 2012, the company achieved operating income of 1.506 billion yuan, down 4.60% from the same period last year; operating profit of 91.353 million yuan, an increase of 179.47% over the same period last year; net profit belonging to the owner of the parent company was 41.6863 million yuan, down 63% from the same period last year; and basic earnings per share was 0.09 yuan per share.
The company's revenue fell compared with the same period last year. The company is the first professional production of sewing equipment enterprises, set industrial sewing machines, household multi-functional sewing machines, household and industrial embroidery design, development and sales as one of the professional company. In 2012, the company's revenue fell 4.60% from the same period last year, mainly due to the slow recovery from the international financial crisis, and the company's trade exports fell 30.96% year-on-year to 143 million yuan.
The comprehensive gross profit margin has improved. The company acquired a well-known German company DA (Dukop Aihua Co., Ltd.), making the company's sewing machine manufacturing technology into the world's advanced ranks. In 2012, DA made great efforts to expand the market of medium and thick material machines and special machines in leather, luggage and car seats, realizing the generalization of spare parts and reducing product manufacturing costs, resulting in a 5.46% year-on-year increase in the company's 2012 comprehensive gross profit margin to 29.10%. Among them, the gross profit margin of sewing equipment increased by 4.06% year-on-year to 36.74%, and the gross profit margin of trade export business increased by 0.38% year-on-year to 1.81%.
High-tech integrated products enhance the competitiveness of the company. In February 2013, the company's non-public offering investment project "R & D and production of automatic sewing unit and electronic control system project", the automatic sewing unit of this project can provide a complete set of solutions for garment processing customers. is a collection of machinery, program control, photoelectric detection, electromagnet and hydro-pneumatic drive in one of the high-tech integrated specialized products. It is expected that the project will be completed in 2015 and reach the design production capacity in 2020, which will further enhance the company's market competitiveness.
Overseas mergers and acquisitions speed up the optimization of the company's product structure. In 2013, the company acquired Germany Baifu and German Kellman, through the German Baifu, the introduction of automatic sewing technology in the field of thick materials and shoemaking machines and the welding technology of chemical fiber fabrics; through the German Kellman company, the sewing technology and robot three-dimensional sewing experience of automotive interior decoration, airbags and carbon fiber lightweight material structures are introduced. Overseas mergers and acquisitions prompted the company to launch high-end new products and divest the old products with low gross margin, and product optimization enhanced the company's profitability.
Earnings forecast and rating: we expect the company's EPS from 2013 to 2015 to be 0.13,0.18,0.21 yuan. According to the closing price of 6.71yuan, the corresponding dynamic price-to-earnings ratio is 51,37,33 times, maintaining the company's "neutral" rating.
Risk hint: downstream demand declines and exchange rate fluctuates sharply.
