Sifangda: Huayuan consolidated to bring performance increase

Changjiang Securities recently released a research report by Sifangda. The company released the 2013 third quarterly report. During the reporting period, the company achieved operating income of RMB 98 million, a year-on-year increase of 5.93%; operating cost was RMB 55 million, down 1.09% year-on-year; The net profit of the owner was 24 million yuan, down 8.41% year-on-year; the EPS was 0.11 yuan.

Among them, the company achieved operating income of RMB 38 million in the third quarter, up 14.59% year-on-year; operating cost was RMB 20 million, up 5.69% year-on-year; net profit attributable to owners of the parent company was RMB 10 million, up 7.78% year-on-year; EPS0 was realized in the third quarter. .05 yuan, EPS in the second quarter is 0.03 yuan.

Huayuan consolidated the performance, and the chain saw improvement in the third quarter: Huayuan Superhard Materials Tools Co., Ltd., a leading PCD tool for domestic woodworking tools acquired in the first half of the year, began to consolidate its statements in the third quarter. Due to the relatively high profitability of Huayuan, and the growth of operating income in the third quarter, it also significantly improved the company's profitability. The company's comprehensive gross profit margin increased from 42.27% in the second quarter to 47.39% in the third quarter and reached the historical level. Relatively high, the net profit margin of sales recovered from 22.62% in the second quarter to 26.32% in the third quarter.

Excluding the impact of Huayuan's consolidation, the parent company achieved operating income of RMB26 million in the third quarter, down 13.76% from the previous quarter. Since the company's 52.07% of its sales revenue comes from exports, the continuous appreciation of the RMB since the fourth quarter of 2012, especially the rapid appreciation in the second quarter, has weakened the company's export price advantage and has a certain negative impact on the company's foreign market development. It is the main reason for the company's third-quarter operating income decline. It is worth noting that the parent company's comprehensive gross profit margin in the third quarter was 44.95%, which was still a certain increase in the second quarter. It should be due to the increase in the proportion of high-margin high-end products brought about by the release of fundraising projects. The investment income and non-operating income brought by the benefit of fund management increased, and the parent company's third-quarter earnings were flat.

Although the appreciation of the renminbi has caused some problems for the company's exports, the promotion of high-end new products has achieved certain results. In addition, Zhengzhou Huayuan, which focuses on the segmentation of PCD tools for domestic woodworking, can also provide a certain buffer for the company's performance.

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