From January to September 2009, the company achieved operating income of 331 million yuan, down 4.07% from the same period last year; operating profit was 6.86 million yuan, up 6.36% from the same period last year; net profit belonging to the parent company was 7.61 million yuan, up 49.20% from the same period last year; and diluted earnings per share was 0.04 yuan.
From July to September, the company achieved operating income of 128 million yuan, an increase of 5.79% over the same period last year; operating profit of 7.12 million yuan, down 8.01% from the same period last year; net profit belonging to the parent company was 5.8 million yuan, an increase of 2000% over the same period last year; and diluted earnings per share was 0.03 yuan.
The profitability of the existing main business is worrying, and the growth is weak. The company mainly produces vacuum interrupter, also known as vacuum switch tube, which is the core component of medium and high voltage switch. Although the company is a leading enterprise in the production of vacuum interrupters, it has been in a state of small profit due to the rising prices of metal materials in recent years and the weak bargaining power caused by the concentration of downstream demand.
The actual controller is changed to Xidian Group, pinning its hopes on the integration of Xidian. At the beginning of 2009, the original actual controller of the company, Baoji SASAC, transferred 92% of the equity of Baoguang Group to Xidian Group, which was changed to the actual controller of the company. Xidian Group, an enterprise directly under the State Council's SASAC, is the main production base of complete sets of high-voltage and ultra-high voltage AC / DC substation equipment in China, with high-quality assets such as Xi'an Xikai and Xi'an Transformer Plant. In the same industry, special electricians, Tianwei Protective Engineering and Pinggao Electric have already been listed, and Xi Dian Group has been speeding up the restructuring and preparation for listing in recent years. After the restart of IPO, Xi'an Electric Power Group is expected to go public through its shell. However, we believe that Xidian Group does not rule out the possibility of bringing Baoguang shares into its production system or injecting some assets into it. At present, the equity transfer procedures are still under way, and we will continue to monitor the progress of the matter.
Profit forecast and investment rating. The current stock price of the company no longer reflects the value of existing assets, so investors are advised to pay attention to possible asset injection investment opportunities. Regardless of the impact of asset injection, we expect earnings per share from 2009 to 2010 to be 0.07,0.08 yuan respectively, and the corresponding dynamic price-to-earnings ratio is 165,135 times respectively, which is higher than that of similar listed companies and maintains a "neutral" investment rating. It indicates the uncertain risk of asset injection and business integration.
