From January to September 2009, the company achieved operating income of 1.91 billion yuan, down 38.7% from the same period last year; operating profit was 1.45 billion yuan, up 87.9% from the same period last year; net profit belonging to the owner of the parent company was 110 million yuan, up 82.2% from the same period last year; and basic earnings per share was 0.24 yuan.
From July to September 2009, the company achieved operating income of 810 million yuan, down 21.2% from the same period last year; operating profit was 36.29 million yuan, up 44% from the same period last year; net profit belonging to the owner of the parent company was 285.9 billion yuan, up 75.2% from the same period last year; and basic earnings per share was 0.063 yuan.
The gross profit margin of the main business decreased month-on-month and increased compared with the same period last year: polypropylene, the company's main product, is a chemical product with a large domestic gap, with a large degree of external dependence, and the production and marketing situation is better, but due to the rise in raw material prices in the third quarter, the comprehensive gross profit margin fell 5 percentage points month-on-month, the same as in the first quarter. Another main product LPG is mainly used for civilian sales price and quantity is stable, but the gross profit margin level is low.
Investment income still accounts for a relatively large proportion: the company's investment income in the first three quarters was 530000 yuan, 19.73 million yuan and 23.72 million yuan respectively, accounting for 1.4%, 27%, 65% of operating profit respectively. At present, the company still holds 4.3 million shares of China Unicom, 1.79 million shares of Anxin Trust and so on. It is possible to continue to contribute investment income to the company in the fourth quarter.
Make use of the company's peripheral resources to expand existing projects: there are large-scale oil refining projects such as Maoming and Huizhou around the company, and the company uses its terminal products to produce ethanolamine, solvent oil and other products with good market prospects. The company's 6000 tons / year ethanolamine plant reconstruction and expansion to 46000 tons / year project has completed the project, signed the technology and equipment supply contract, and completed the process package design, long-term equipment ordering work. At present, the design and construction preparation of the project are under way.
Earnings forecast and investment rating: we expect the company's earnings per share from 2009 to 2010 to be 0.29 yuan and 0.38 yuan respectively, the latest share price of 8.31 yuan, the corresponding dynamic price-to-earnings ratio of 29 times and 22 times respectively. The valuation level is high and the "neutral" investment rating is maintained.
Risk hint: the important source of profit of the company is the greater risk of stock investment income.
