In 2012, the company achieved operating income of 1.03 billion yuan, down 5.42% from the same period last year; operating profit loss of 3.3777 million yuan (5.5299 million yuan in the same period last year); net profit belonging to the owner of the parent company 14.6384 million yuan, down 23.17% from the same period last year; and basic earnings per share of 0.0425 yuan. The 2012 distribution plan is 0.24 yuan (including tax) for every 10 shares.
The company belongs to the building materials industry, the main business is the production and sales of float glass and glass products.
The decline in prices is the main reason for the decline in revenue compared with the same period last year. The company's operating income in the fourth quarter was 333 million yuan, down 9.12% from the same period last year, which was larger than the 3.55% decline in the previous three quarters. Although the company's annual sales increased by 13.01% year-on-year to 18.0538 million weight boxes, due to a large year-on-year decline in product prices, the company's revenue declined compared with the same period last year.
Profitability continues to pick up, and non-recurrent gains and losses help companies avoid losses. Affected by the bottom of raw material prices and the rebound of glass prices, the company's profitability continued to pick up in the fourth quarter, achieving a comprehensive gross profit margin of 21.17%, an increase of 8.74 percentage points over the same period last year, and an increase of 7.78 percentage points over the previous three quarters. Profitability for the whole year is gradually picking up. A sharp increase in financial expenses by 58.53% year-on-year resulted in an increase of 3.47 percentage points in the company's expense rate to 15.70% year-on-year. Affected by government subsidies, the company achieved a non-recurrent profit and loss of 24 million yuan during the reporting period, which is the main reason for the company to avoid losses.
Future performance growth still depends on project investment. Due to the decline in downstream demand, weak product prices, industry overcapacity and other circumstances, the company's performance in 2012 is weak. We believe that the company's future concerns are as follows: 1) the company has invested nearly 800 million yuan in two phases to build an annual production line of 3.1 million weight boxes of advanced automotive skilled glass substrate materials, and an annual production line of 500000 weight boxes of special low-radiation and energy-saving glass. It is expected that the project will achieve an average annual net profit of 216 million yuan after reaching full production, which will help the company to expand the glass industry chain and improve the profitability of its products. Enhance the company's ability to resist the cycle. 2) the company bought 42% of Suzhou Shengkangda Biotechnology Co., Ltd., held by traditional Chinese Medicine, with 38 million yuan to carry out research and development of anti-tumor biomedicine. If it can be successfully realized, it is expected to improve the company's current situation of single product structure and enhance the company's profitability. In addition, the company invested 27 million yuan to participate in Xinjiang Puyao 500t/d low-radiation energy-saving coated glass production line, which may produce some investment income after the project is put into production.
Profit forecast and investment rating. The company's EPS from 2013 to 2014 is expected to be 0.10 yuan and 0.20 yuan respectively, with the corresponding dynamic price-to-earnings ratio of 75 times and 35 times respectively based on the recent closing price. In view of the lack of obvious signs of recovery in the industry, the company's income forecast for new projects is not clear, maintaining the company's "neutral" investment rating.
Risk hint. The recovery of the industry economy is less than the expected risk; the project investment return is less than the expected risk