Transportation Co., Ltd. released its quarterly report today, the main contents of which are as follows:
In the first quarter, the company achieved operating income of 1.652 billion yuan, an increase of 19.16% over the same period last year; gross profit of 12.74%, down 3.62% from the same period last year; and operating profit of 781 million yuan, an increase of 9.51% over the same period last year. The net profit belonging to the owner of the parent company was 482 million yuan, equivalent to 0.0659 yuan per share, an increase of 9.82% and 34.44% compared with the same period last year.
On April 18, 2011, the company held the 2010 annual shareholders' meeting, which examined and approved the relevant motion on "issuing shares to specific parties to purchase assets and related party transactions". It is proposed to issue non-public shares to Shanghai Transportation (Group) Company, Shanghai Jiushi Company and Shanghai Real Estate (Group) Co., Ltd. Inject 100% equity in Shanghai Jiaoyun Hubei Logistics Development Co., Ltd., 35% equity in Shanghai Lingang Industrial Zone Port Development Co., Ltd., and 200 million yuan in cash. 48.5% equity in Shanghai Jiaoyun bus passenger Transport (Group) Co., Ltd. And 25% equity in Shanghai South Railway Station long-distance passenger Transport Co., Ltd.
We believe that the company's operating income grew rapidly in the first quarter, and its operating performance slightly exceeded expectations. From a month-on-month point of view, the Spring Festival travel factor led to an increase of 7.29% in operating income, 1.99% in sales expenses and 1.94% in management expenses, resulting in a significant increase in net profit by 34.44%. This asset injection will help strengthen the main business of the company's transport and logistics services. It is expected that in 2011, the new assets will be thickened by EPS0.0132 yuan for Shanghai-North Transportation, EPS0.0399 yuan for transport buses, and EPS0.0222 yuan for long-distance transportation at South Station, totaling EPS0.0753 yuan. We expect that after the private placement, the EPS of the company from 2011 to 2013 will be 0.2232 yuan, 0.2630 yuan and 0.2994 yuan respectively, corresponding to 35 times, 30 times and 26 times of PE, respectively, maintaining a "cautious recommendation" rating.
