Abstract The annual report results were lower than expected. The gross profit margin dropped sharply and the period expenses increased sharply. The main reason was that in 2012, the company realized operating income of 136.67 million yuan, an increase of 19.89% year-on-year; net profit attributable to shareholders of listed companies was 3432.98...
The annual report results were lower than expected, the sharp decline in gross profit margin and the significant increase in period expenses were the main reasons In 2012, the company achieved operating income of 136.67 million yuan, an increase of 19.89% year-on-year; net profit attributable to shareholders of listed companies was 34.429 million yuan, a year-on-year decrease of 3.54%; basic earnings per share was 0.29 yuan, lower than our expectation, of which 2012Q4 The EPS is 0.02 yuan. (1) 52.02% of the net profit contributed by the fundraising project, and the over-raised project is progressing in an orderly manner. (2) The mid- to high-end oil film market has achieved initial success, with operating income increasing by nearly 20% year-on-year. (3) The gross profit margin of super-hard composite materials and super-hard composite materials decreased sharply, which caused the gross profit margin of comprehensive sales to drop sharply by 5.18 percentage points. (4) The gross decline in sales gross margin and the significant increase in period expenses led to an increase in operating profit of only 2.01%. (5) The dividend plan for 2012 is 1.5 yuan for every 10 shares, and 8 shares for every 10 shares with capital reserve.
Market capacity, growth rate and profitability determine the future development focus is on composite sheets for petroleum and cutting tools.
(1) Composite sheets for petroleum: In 2011, the global capacity was about 8-140 billion yuan, and China's capacity was 400-700 million yuan. It is expected that the demand growth rate in the next few years will be over 20%. (2) Composite sheets for cutting tools: In 2015, the global capacity may reach US$3.6-7.2 billion, and China may reach RMB4.3-4.8 billion. The demand growth rate in the next few years may reach 25%-30%. (3) Composite sheets for mines: In 2012, the global capacity was about 13 billion yuan, but the growth rate in the future may be only about 5%. (4) Drawing die blank: In 2012, China's capacity was about 2.3 billion yuan, and the future growth rate is about 10%. (5) Gross profit margin: The gross profit rate of composite sheets for petroleum and cutting tools is about 40%, about 70% for high-grade drawing blanks, and about 30% for mining composite sheets.
High-end oil and large-diameter cutting tools, it is expected to significantly improve profitability
(1) Composite sheets for petroleum: Most of the high-end products are monopolized by internationally renowned manufacturers. The company focuses on PCD composite sheets for medium and high-end oil/gas drilling, and gradually participates in the international market competition with the advantage of cost performance. In 2012, the company's high-end oil/gas drilling composite film responded well after customer trials and steadily explored foreign markets. (2) Composite sheets for large-diameter tools: The high-end market is mainly occupied by famous foreign companies. The company's PCD/PCBN tool composite sheets rely on large diameter and quality to expand the market share, as the only large-scale mass production of 50.8mm tools in China. The enterprise of PCD composite film has the same product quality as the world's advanced level. It started to supply small quantities and continued to promote the development of PCD composite sheets for 58mm tools. With the market development of high-end petroleum and large-diameter tool composites, the company's profitability is expected to improve significantly.
Earnings forecasts and investment advice
Without considering the increase, the company's 2013-2015 EPS is expected to be 0.38 yuan, 0.50 yuan and 0.64 yuan, calculated according to the closing price on March 7, 2013, corresponding to 2013-2015 PE is 37.94X, 28.74X and 22.32. X, we give the company a "cautious increase in holding" rating, optimistic about the company's technological advantages in the composite film market, high-end oil and tool composite film volume is expected to significantly improve the company's operating performance in 2013.
risk warning
The market promotion progress of high-end oil and tool composite sheets was lower than expected; the sharp rise in raw material prices caused the gross profit margin of the composites to fall sharply; the macroeconomic growth rate fell sharply, and downstream demand was lower than expected.
Sandwich Panel,Foam Sandwich Panel,Wall Sandwich Panel
Prefabricated House,Steel Structure Co., Ltd. , http://www.wfsteelstructure.com