Meiling Electrical investment income to help advance by the first three quarters eight times earnings - Meiling Electrical Appliance, home appliances - home appliances industry-hc360 HC Network

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Meiling by the first three quarter net profit up 840.51% pre-, sustained reduction

Financial
garage floor sealers

Surge in equity income earned on investments is the main driver. Company
adhesive wood floor

Refrigerator
joint filler

Business benefits

Bringing home appliances

National promotion in 2009 to determine a more high growth, but the company still depends on the profits of the year on the shares held by iFLYTEK the reduction efforts.



Meiling (000521:7.53, +0.45, 6.36%) 10 15 start date Announcements correction notice, the company in 2009 from January to September net profit of 0.95-1.1 billion Chinese and reported a revised disclosure 180 million yuan, up 840.51 percent, corresponding to the first three quarters earnings per share of 0.44 yuan.



Reduction of equity investment income is the key to rising profits. Meiling as iFLYTEK (002,030) the initiation of the shareholders, the initial cost of 1,896 million shares, holding 660 million shares, the average cost of 2.87 yuan per share. May 2009 10 5 increase by transferring distribution scheme implemented, the holding costs down to 1.92 yuan. According to pre-increase announcement, the first three quarters the company sold part of the actual sale of financial assets were about 9,891.34 million after-tax net investment income, representing net profit of 54.95%, contribution to earnings per share of 0.24 yuan.



Reduction efforts will continue to determine future profitability. 2009 in the first half, Meiling 1,142 million non-recurring gains and losses, the access to government grants 4.22 million yuan, from Hefei Finance Bureau funding incentives; disposal of financial assets available for sale investment income received 7.12 million yuan, mainly by equity holders of iFLYTEK. According to the company announcement, in July 1 -8 4 days, the company sold some of the financial assets available for sale after-tax net investment income was about 5,216.18 million, of which 100 million shares and holdings in China Pacific Insurance iFLYTEK about 150 million shares. Can be deduced from August to September in the still during the reduction, after-tax net investment income available to about 3,800 million from the corresponding iFLYTEK about 150 million shares. Currently, the company shares held by iFLYTEK level of roughly 650 million shares to 36 yuan a share price, the fair value of 2.34 billion yuan, about 220 million yuan added value, corresponding to earnings per share were 0.53 yuan. So the next company for iFLYTEK the reduction efforts, will directly determine the current level of profitability.



Appliances

Pull the refrigerator countryside

Sell

Product growth. Refrigerator is the largest home appliance products to benefit the countryside, home appliances to the countryside information system according to statistics, refrigerators appliances to the countryside in the country of total sales and total sales were accounted for more than 55% and 65%. Meiling countryside in the refrigerator about 10% market share, ranking the second in expected sales revenue in the countryside home appliances company in 2009 the proportion of the refrigerator to reach 40% of revenue. As the rural consumer has entered a rapid spread of the refrigerator, the company will continue to enjoy the next 34 markets surge in demand driven by the revenue.



Although gross margin improved, conceal extensive business management side. 08 Meiling product gross margin was 22.5% in 2009 1,2-quarter gross margins were 28.5% and 28.1%. Mainly due to steel and other raw material prices, and the company "Athena" on the amount of high-end series refrigerator. It is worth noting, however, the company's sales have shown a rising cost trend rates, especially in 2008 has been a steep increase in cost of sales to 16.8% in 2009 to first quarter cost of sales increased to 28.5%, directly resulting in gross margin does not bring profit growth conditions. The proliferation of corporate costs, on the one hand due to appliances to rural areas across the country, sales network construction, logistics and after-sales

Service

Other inputs to increase, on the other hand, also reflects the company's current management remained crude.



Semiannual reports show that from January to June 2009 the company achieved operating income of 2.562 billion yuan, up 2.78%; to achieve the net profit attributable to parent company shareholders 30.38 million yuan, up 114.18 percent, corresponding to the medium-term earnings per share 0.07 element.



As of press time, Meiling price of 7.58 yuan, up 7.06% over the previous trading day.