Event: the company released its 2012 annual report: during the reporting period, the company achieved operating income of 649 million yuan, an increase of 25.12% over the same period last year; net profit belonging to shareholders of listed companies was 81.69 million yuan, up 12.83% from the same period last year; EPS was 0.71 yuan in 2012; the company plans to pay a cash dividend of 2 yuan (including tax) for every 10 shares and increase 5 shares for every 10 shares.
Comments:
The performance is fully in line with our expectations, and the steady growth of the market and the gradual investment of fund-raising projects lead to performance growth. The southwest, the main service area of the company, is one of the most important natural gas producing areas in China, and its geological structure is one of the most complex and difficult to construct and serve in China. By the end of 2012, the company has undertaken drilling fluid technical services for more than 1000 different types of wells, including high temperature and high pressure wells, ultra-deep wells, underbalanced wells, branch wells, high-density highly deviated wells and horizontal wells, accounting for more than 30% of the number of wells constructed.
The gross profit margin of drilling fluid technical service and oil and gas field environmental protection technical service, which accounts for a large proportion of revenue, has decreased, while the gross profit margin of petrochemical products sales has increased. During the reporting period, the revenue from drilling fluid technical services was 388 million yuan, accounting for 59.8% of the total revenue, the gross profit margin was 31.6%, and the gross profit margin was 4.6% lower than the same period last year; the revenue from environmental protection technical services in oil and gas fields was 115 million yuan, accounting for 17.7% of the total revenue, the gross profit margin was 24.4%, and the gross profit margin was 7.1% lower than the same period last year. The sales revenue of petrochemical products is 51.4 million yuan, accounting for 7.9% of the total revenue, the gross profit margin is 21.1%, and the gross profit margin is 14.1% higher than the same period last year.
Sales expenses and financial expenses decreased compared with the same period last year, while administrative expenses increased year-on-year. Sales expenses decreased by 10.44% year-on-year, mainly due to the company's new business and the adjustment of some personnel to the newly established operations department; management expenses increased by 27.79% year-on-year, mainly due to the gradual implementation of the provincial technology center upgrade fund-raising project and the company's continued increase in R & D investment; financial expenses decreased by 264.70% compared with the same period last year, mainly due to the increase in interest on time deposits of temporarily unused raised funds.
The company announced its business target for 2013: it is expected to achieve an operating income of 760 million yuan in 2013, an increase of 17.11% over the same period last year, and a total profit of 100 million yuan, an increase of 1.5% over the same period last year.
Maintain the "prudent recommendation" rating. The company is based in the southwest, drilling fluid technical services have certain advantages, the future development of the natural gas industry in the southwest will help the company to maintain stable growth. From 2013 to 2015, the EPS is expected to be 0.80,1.02 and 1.24 yuan respectively, according to the latest share price of 16.42 yuan, the corresponding PE is 21 times, 16 times and 13 times respectively, maintaining the "prudent recommendation" rating. Risk hint
Risks that are difficult to develop in external areas
Risk of instability of gross profit margin
Risk of large balance of accounts receivable