Steady growth in the first half of the year
In the first half of the year, the company realized operating income of 5.687 billion yuan, an increase of 3.32% over the same period last year; the total profit realized was 64.5593 million yuan, an increase of 6.79% over the same period last year; and the net profit belonging to the parent company was 50.946 million yuan, an increase of 16.42% over the same period last year.
The income mainly comes from trade, but the profit mainly comes from processing production.
The company's overall gross profit margin in the first half of the year is about 2.2%, which is basically the same as last year. In terms of product structure, 80% of the first-half revenue came from trade (aluminum ingots), while processing accounted for only 20% of the revenue. The gross profit margin of aluminum processing is 10.1%, but the gross profit margin of the trading business is only 0.16%, which greatly lowers the overall gross profit margin of the company. In terms of gross margin contribution, the trading business contributed only 6 per cent of gross margin, while the remaining 94 per cent came from aluminium processing.
The gross profit margin of high-end products in the processing business has increased.
Among the company's processed products, profile and powder coating products are relatively high-end, accounting for 65.8% and 1.6% of the processed product income, respectively, with a gross profit margin of 12.5% and 27.64%, and a contribution of 81.6% and 4.4% to gross profit. The revenue and gross profit margin of these two products increased compared with the same period last year. And the profit is relatively weak plate, income, gross profit margin have declined.
The performance in the second quarter improved from the previous quarter
In the second quarter, the company's revenue increased by 2.8% compared with the previous quarter, gross profit increased significantly, gross profit increased by 32.5%, and net profit after tax increased by 148.1%. We speculate that the income structure has changed greatly compared with the first quarter, with an increase in the proportion of processed products and a decrease in the share of trade income.
Give the company a "cautious recommendation" rating
It is estimated that the EPS of the company from 2013 to 2015 will be 0.44,0.48,0.53 yuan per share respectively, and the dynamic PE from 2013 to 2015 will be twice as much as that in 14-13-12. The valuation of the company has some advantages in the sector, but the flexibility of earnings growth is relatively small, so we give it a "cautious recommendation" rating.
Risk hint
The regulation of real estate leads to the continuous weakness of downstream demand; excessive fluctuations in aluminum prices affect the company's inventory management; and fluctuations in metal prices lead to losses in trading operations.