Multiple factors led to the new material back to the days of low expected third quarter results-Iota

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Office Address:	Sunmoon Science Park, 985 Xingzhong Road, High-Tech Zone, Bengbu, China
Factory Address:	Mohekou Industrial Park, Huaishang District, Bengbu, Anhui, China
Contact:	Nathan Zhang
Phone:	0086-552-19805521900
FAX:	0086-552-3822922
Mobile:	19805521900/18119733779
WebSite:	www.siliconeoil.cn www.siliconeoil.net
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News > Dynamic industry > Multiple factors led to the new material back to the days of low expected third quarter results

Multiple factors led to the new material back to the days of low expected third quarter results

Back to the days of new material company's third quarter revenue growth remained stable, but net profit fell significantly below expectations. We found that many factors cause the company's third-quarter earnings of low expectations: 1) The quarter-margin products such as high-speed low-glue, construction adhesive sales increase, leading to consolidated gross profit decline; 2) the current turnover tax increases, making the provision of business taxes and surcharges; an increase of 148.30%, an increase of 60.59%; increase of 3) three charges, mainly to increase sales growth in selling expenses and raise investment projects brought into the intensive construction period resulted in reduction of monetary funds to reduce deposit interest income; 4) increase in accounts receivable bring bad debts increase, leading to increased asset impairment losses.
Downstream demand is still strong, strong momentum in the overall development of the company
We believe that, as a whole, the company is still strong momentum of development, short-term performance is not up to expectations mainly affected the company's product research and development production and sales of rhythm. The main downstream automobile accessory and aftermarket, electronics, high-speed rail, photovoltaic demand is still strong, the future, as the equity investment "silicone", "Polyurethane" project, solar back film projects, fluoride film production line in succession acceptance into operation, will have conducive to the realization of import substitution, to further enhance its market share.
In business development, in the third quarter of this year, its new orders in the high-speed rail 2.277 million yuan, the wind blade rubber field, and Guangdong Mingyang Wind Power signed a wind turbine blade materials 2014 procurement contracts, and complete the three blades of the trial.
The Commission has obtained non-public offering accepted, management confidence in the future development of the subscription highlight
Currently, the non-public issuance of administrative licensing company has been the Commission's acceptance, management and key employees to subscribe hand help holding ratio improved, highlighting the management's confidence in the future development, but also can play the effect of equity incentives to mobilize employee motivation.
2014 EPS0.66 yuan, to maintain our BUY rating
We believe that the company's traditional areas downstream of the boom of the good, new product development and application continue to make breakthroughs, worry-free earnings growth this year and next, 2014 to 15 years EPS0.66,0.90 yuan, to maintain our BUY rating.

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