Jingwei Textile Machinery Shares Strong Trend Of Secrets

Jingwei Textile machinery has shown a strong performance in the two tier market since April. It has increased by more than 40% since the beginning of the year and has hit a new high this year.

The main business is actually a textile machinery. Why does the stock price get stronger in the near future? After a reporter's investigation, it was found that the reason why the market hyped it is actually to see its sideline.

Jingwei Textile machinery is mainly manufacturing light textile industrial equipment, but the reason why the market is hyped recently is the trust concept behind it.

Reporters read the annual report found that the main business of Jingwei Textile machinery is not actually making money, but this sideline has contributed a lot of profits to its performance.

2011 Annual report shows that textile machinery business revenue 6 billion 940 million, accounting for nearly 10 billion 251 million of total revenue of 70%, but gross profit margin is only 15%.

The income of financial trust is 3 billion 64 million yuan, less than 30% of the total revenue, but the gross profit margin is 99.97%.

That is to say, the profit contributed by the trust business is the main reason for the substantial increase in the performance of Jingwei Textile machinery last year.

Jingwei Textile machinery is actually the road of pformation since 2010, holding Zhongrong International Trust Co at 36.6% stake.

In 2011, China Trust business income was 3 billion 37 million, an increase of 76.02% over the same period, and net profit of 1 billion 53 million yuan, an increase of 52.49% over the same period last year.

It is worth noting that in April 13th this year, the company issued a notice that it would increase the amount of capital added to China financial trust through private placement, and the amount of capital increase would be 1 billion.

Company secretaries told reporters that the new issuance plan will be approved at the shareholders' meeting in June 8th.

In addition to the trust business's contribution to profits, the company's quarterly report in 2012 showed that the source of its profits was a substantial increase in investment income.

In the first quarter of this year, while the company's revenue fell 8.77% year-on-year, net profit reached 188 million yuan, up 35.57% over the same period last year, and investment income accounted for 92 million 790 thousand yuan. Most of the investment gains came from the 75% sale of Xianyang Jingwei Weaving Machinery Co., Ltd.

The main business is not making money, and the company has sold the company related to its main business. Is the Jingwei spinning machine going to further shrink the main business of the spinning machine and fight for financial trust?

In 2011, the gross profit margin of textile machinery in Jingwei Textile industry was 15%, up 2.52 percentage points from 12.20% last year.