Event tracking:
The company publishes its 2013 semi-annual report. The company's operating income in the first half of 2013 was 241 million yuan, an increase of 11.6% over the same period last year; net profit attributable to the owner of the parent company was-26.8778 million yuan, down 5.41% from the same period last year; and basic earnings per share was-0.11 yuan, down 8.92% from the same period last year. The net assets belonging to the parent company were 582 million yuan, down 4.41% from the same period last year. There are no plans to distribute cash dividends, bonus shares or increase share capital with provident fund in this period. From January to September, the company is expected to have a net profit loss of 31 million yuan to 36 million yuan, which is attributed to the shareholders of the parent company.
Event analysis:
The industry as a whole showed a slight weakness, and the company's gross profit became a regular one. According to the latest North American PCB statistics released by IPC, shipments in the PCB industry have fallen 4.7 per cent and orders have fallen 1.3 per cent since the beginning of the year. Compared with the previous month, PCB shipments in June were up 12 per cent from the previous month, but orders were down 3.6 per cent from the previous month. This is the first time in seven months that shipments have exceeded orders, directly causing the shipping ratio of PCB orders to fall to 1.05 in June, but still in a positive operating range. IPC does not expect North American PCB sales to grow by more than 1 per cent this year. In the face of the slightly weak pattern of the industry as a whole, the company has achieved a small increase in sales and gross profit by accelerating the upgrading of the order structure and adjusting the allocation of resources, but it is still difficult for the company to rebound significantly in the short term.
The pressure of cost control of the company is still great. In the first half of 2013, the order structure of the company was gradually optimized and upgraded. Due to the high complexity of PCB product process, the company is still under great pressure to control its cost, so it is difficult to recover the profit level quickly in the short term. Due to the increasingly fierce competition of low-end PCB, the company hopes to actively expand market segments and form a customer base in advantageous application areas with the help of the characteristics of multi-variety, multi-application fields and high process completeness, so as to realize the transformation from experience accumulation to performance growth. The company is also actively exploring and cultivating new competitive advantages, and the company's investment in Central Feilang is an example. the project is expected to form a substantial improvement in the company's technology and technology in the future, and become a new competitive point of the company.
Profit forecast and investment advice:
Profit forecast and investment advice. The company is mainly engaged in the R & D, production and sales of copper clad laminates for printed circuits. In recent years, due to the decline in overall demand in the industry and the adverse impact of the company's downstream expansion, profitability has declined significantly. Considering that the operating environment is still uncertain in the second half of the year, the gross profit margin of the company's products will remain low in the short term, and the investment in aerospace circuit boards in cooperation with Central Feilang will have little impact on the company's performance in the short term, we give the company a "neutral" investment rating for the first time.
Investment risk: the risk of intensified competition in the industry; the risk that downstream demand falls short of expectations