The company is the industry leader in the inverter, the PV installed capacity to fully enjoy the rapid domestic growth, while the overall industry production capacity is expected to make an inverter prices to recover, optimistic about the company's business model to enter the power station EPC, power business will become inverse Transformer businesses is another important profit growth. 2013-2014 the company forecast diluted EPS were 0.46 yuan, 0.65 yuan, corresponding to PE were 36,25 times, maintain the company "recommended" rating.
Results in line with market expectations: The company announced in 2013 semi-annual report. First half of the total operating income of 723 million yuan, an increase of 99.59%, net profit attributable to shareholders of 054 million yuan, an increase of 19.53%. Basic earnings per share 0.17 yuan, an increase of 21.43%. Cash flows from operating activities $ 144 million compared to -1.58 billion. Performance of the company in line with market expectations.
Contribute to the development cycle power plant began Income: First-half revenues increased significantly, mainly due to revenue recognition photovoltaic plant business started. Power systems integration business in the first half the company recognized revenue 266 million yuan, accounting for 74% of additional revenue. As the company is to carry out EPC model station business, therefore lower gross profit margin was 8.5%, which also dragged down the company's overall gross profit margin. But EPC business expenses for the period is relatively small, first-half sales rate of 7.2%, down 7.7 percentage points, the management expense ratio of 9.23%, down 9.37 percentage points. From a single-quarter sales margin perspective, the company net profit margin of 8.57% in the second quarter was the highest in the last four quarters.
Inverter prices are expected to stabilize stabilized: PV inverter business in the first half the company achieved revenues of 430 million yuan, an increase of 33.58%, gross margin of 30.1%, down by 10.32 points. Company as the industry leader in thedomestic photovoltaic inverters, revenue growth reflects the rapid increase in domestic capacity and gross margin decline reflects the relatively harsh competitive environment. But as we report in the industry prior to the analysis, to the production process is continuing to push forward, and ultimately achieve supply and demand balance, we think the price is expected to rebound inverter, thereby improving the company's profitability.
Farm business is an important future profit growth point: the company as a domestic inverter industry leader, take advantage of the listing in the ability to enhance the investment and financing as well as 15 years of experience in photovoltaic systems integration, into the photovoltaic power plants. Companies and co-construction of the Three Gorges New Energy's first solar power plant projects have been successfully and power generation, the company's two projects in Jiuquan, Gansu - Jiuquan Jiuquan Sanyang Chaoyang projects and projects, the former has been success and power generation, which has completed basic construction. We are optimistic about the company's business model to enter the power station EPC, power inverter business will become the company's businesses is another important profit growth.