From January to September 2009, the company achieved operating income of 660 million yuan, down 36.2% from the same period last year; operating profit was 35.59 million yuan, up 58.7% from the same period last year; net profit belonging to the owner of the parent company was 30.26 million yuan, up 56.8% from the same period last year; and basic earnings per share was 0.233 yuan.

From July to September 2009, the company achieved operating income of 230 million yuan, down 19.9% from the same period last year; operating profit was 3.38 million yuan, up 178.1% from the same period last year; net profit belonging to the owner of the parent company was 2.93 million yuan, up 193.5% from the same period last year; and basic earnings per share was 0.023 yuan.

A small base makes great growth. The company's main business is the production and sales of polyaromatics and polypropylene. The price of raw materials for the company's products rose more in the same period last year, showing the lowest level of net profit in recent years. This year, with the recovery of the chemical industry, the company's product prices picked up, with a year-on-year increase of 56.8%.

The gross profit margin fell quarter by quarter. In the first quarter, the price of the company's product acetonitrile increased significantly, and the gross profit margin of the product increased significantly, resulting in a substantial increase in the company's net profit. In the following two quarters, the advantage of acetonitrile gradually disappeared, the price gradually fell, the price of raw materials of the company's products increased, and the gross profit margin decreased from 22.3% in the first quarter to 16.9% and 7.4% in the second and third quarters, showing a trend of decreasing quarter by quarter.

A large amount of impairment loss on assets. In the third quarter of this year, the company recorded an impairment loss of 25.18 million yuan, an increase of 2.4 times compared with the same period last year. This is mainly due to the recovery of the impairment loss of fixed assets of the pharmaceutical branch, which affects the company's pre-tax EPS0.19 yuan.

During the period, the cost rate increased by 0.7 percentage points month-on-month and 0.6 percentage points higher than the same period last year.

Mainly due to the improvement of the company's management expenses and sales expenses, the company's asset-liability ratio is low, and the financial expenses are almost zero.

Earnings forecast and investment rating: we give the company a profit forecast of 0.23 yuan for 2009 and 0.11 yuan for 2010, with the latest closing price of 13.32 yuan, corresponding to a dynamic price-to-earnings ratio of 58 times and 141 times respectively, maintaining a neutral investment rating.

Risk hint: in the process of economic crisis, the price of international and domestic petrochemical market fluctuates greatly, the price of the company's products fluctuates, and the shortage of raw materials brings greater risks to the business work.