Hua Fengchao Fiber: New Products Began To Increase Volume, Gross Margin Continued To Improve

< p > > a href= "http://sjfzxm.com//business/" > Huafeng super fiber company < /a > achieved revenue of 466 million yuan in the first half of the year, an increase of 29% compared with the same period last year, and realized operating profit of 75 million 389 thousand and 800 yuan, an increase of 62.87% compared with the same period last year. The net profit attributable to shareholders of the listed company was 57 million 395 thousand and 500 yuan, an increase of 38.06% over the same period.

The company's revenue and operating profit growth are in line with our expectations. The main reason for the low growth rate of net profit attributable to parent companies is that the income tax policy of hi-tech enterprises has expired this year, and the corporate income tax rate has increased from 15% to 25%. However, we believe that this year's recovery of high and new technology enterprises is expected to pass, and the rate of income tax can be refunded.

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< p > since this year, < a href= "http://sjfzxm.com//business/" > Company < /a > has invested a lot of manpower and material resources in the development and promotion of new products. Continuous haste of products such as leather, shoe leather and automobile upholstery leather has offset the shrinking sales of sports shoe leather and raised the gross profit margin of the company.

According to the products, the income of microfiber synthetic leather increased by 12% compared with the same period last year, the gross profit margin increased by 2.3 percentage points, the base cloth income increased by 18% compared with the same period last year, and the gross profit margin increased by 4.3 percentage points.

The gross margin of suede leather products increased by 98% over the same period last year, and the gross profit margin increased from 37.4% to 42.4%, an increase of 5 percentage points.

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< p > Huafeng ultra fiber has made great efforts to expand its overseas business. The effect is very obvious. In the first half of this year, its operating income was 117 million yuan, up 65% from the same period last year, and gross profit was 51 million 580 thousand yuan, an increase of 96% compared with the same period last year, and the gross profit margin increased 7 points to 44% over the same period.

The company's overseas products are mainly exported to Europe, South America and other regions, and export tax rebates make gross margin of overseas business generally higher than domestic business.

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< p > > a href= "http://sjfzxm.com//business/" > in summary, < /a >, we maintain the company's earnings forecasts of 2014-2016, 0.98, 1.24, and 1.31 yuan per share respectively, maintaining 18 times earnings per share in 2014 and 18.61 yuan in target price, maintaining the company's "buy" rating.

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