Gasification revenue growth profit decline

The coal gasification (000968.SZ), which is owned by the central company China Coal Group, announced that the 2011 annual report on the evening of March 5 showed that the company's annual sales in 2011 were higher and lower, and the gross profit rate of its main business was down.

On a quarterly basis, the company achieved revenue of 1.18 billion yuan in the fourth quarter of 2011, an increase of 35% year-on-year and an increase of 15% from the previous quarter; and a net profit of 50.28 million yuan, a decrease of 16% from the previous quarter. The company achieved operating income of 3.78 billion yuan (YOY 7%) and net profit of 207 million yuan (YOY-12%) throughout the year. As of the fourth quarter, the company realized EPS (ttm) of 0.4 yuan, corresponding to ROE of 7%.

Throughout the year, the company achieved operating revenue of RMB 3,780 million for the year in 2011, an increase of 7.26% year-on-year; operating profit was RMB 443 million, a year-on-year decrease of 6.33%; net profit attributable to shareholders of listed companies was RMB 207 million, a year-on-year decrease of 12.02%.

In 2011, the company's camp increased and decreased, and its main business coal gross profit rate decreased by 3.48% year-on-year, of which the gross margins of coke, raw coal, and clean coal, which account for the three main decks' revenues, declined. Among them, coke revenue, which accounted for 52.97% of the main business revenue, was 1.982 billion yuan, and gross profit margin was down 10.41% year-on-year. The proportion of clean coal, which accounted for 14.87% of the main business income, was 557 million yuan for refined coal, 1.57% year-on-year for gross profit margin, and 849 million yuan for raw coal, which accounted for 22.98% of main business income. Gross profit margin decreased by 0.45% year-on-year.

The company's 2011 revenue pattern has not changed much compared with the previous year. Accounting for the proportion of main business income, raw coal increased from 16.70% in the previous year to 22.68%, coke decreased from 61.07% in the previous year to 52.97%, and clean coal increased from 13.36% in the previous year to 14.87%. The company stated that the increase in the ratio of raw coal revenue to the main business income was mainly due to the increase in sales of raw coal from the company and the increase in prices; the decrease in the proportion of coke revenue in the main business income was mainly due to the decline in the company’s sales of coke.

According to statistics from the valuetool platform, the company's operating income continued to rise for the fourth quarter and reached a new high of three years. The company's gross profit margin in the fourth quarter was 19%, down 16% from the previous quarter. In the fourth quarter, the company’s management fee rate fell by 4 percentage points to 5%. In the fourth quarter, the company’s sales expense ratio fell by 1 percentage point to 4%. The company's annual financial expenses was 51.11 million yuan, an increase of 97% over the same period last year. In the fourth quarter, net profit was greatly affected by non-recurring gains and losses, and non-operating income accounted for 62% of net profit. The company's fourth quarter operating profit was 32.21 million yuan. In the fourth quarter, the company’s actual income tax rate was 24%, a decrease of 20 percentage points from the previous quarter.

For the future development, the company stated that from the view of the coke market, due to the increase in the cost of coking coal purchases and the overcapacity of coke, it is difficult for the coking industry to achieve fundamental improvement in the short term. In 2012, coke production still faces greater difficulties. As a scarce resource, the market demand for coking coal is generally strong, but due to the downstream steel, the limited production of the coking industry and the release of its own production capacity, the tight supply and demand conditions of coking coal will gradually ease, prices may fluctuate, and even some periods will fall back. Uncertainty increases.

As of December 31, 2011, the actual profit available for shareholders' distribution was 1.106 billion yuan. The company's 2011 profit distribution plan is based on the 512 million shares on December 31, 2011, and a cash dividend of 1 yuan per 10 shares. A total of 51.37 million yuan (tax included) was distributed; capital stocks were not transferred to the company this year; the remaining undistributed profits were 1.054 billion yuan, which was not allocated for the company's future development and profit distribution.

The closing price of the company on March 5 was 17.6 yuan, which was 1.44% higher than the previous trading day. The corresponding price-earnings ratio (ttm) is 43.8 times, and the market price (ttm) is 2.9 times.