Jingwei Textile Machinery: Traditional Business And Financial Business Shine Differently.

In April 21st, Jingwei Textile Machinery (000666) to release a quarterly report in 2011, the company achieved operating income of 2 billion 298 million yuan, up 125.50% over the same period last year. Listed company The net profit of shareholders was 138 million yuan, an increase of 1074.34% over the same period, and the basic earnings per share were 0.229 yuan, up 1045% over the same period last year.

　　 Textile machinery industry rebound

The company's net profit increased by nearly 11 times in the 1 quarter, which is closely related to the substantial growth of the company's main performance. Its contribution to the company's net profit is about 39 million yuan, an increase of 233% over the same period last year. Anxin securities expects the main industry in 2011 to contribute net profit of about 150 million yuan. The momentum of the main business has been good as early as the company announced the 2010 annual report. The annual report shows that in 2010, the company achieved net profit of 245 million yuan, an increase of 410.2% over the previous year. To achieve earnings per share of 0.41 yuan.

As China's largest and only flagship manufacturer of textile machinery with R & D and production capacity of cotton textile complete sets of equipment, the company's main products occupy more than 50% of China's textile machinery market, and its products are sold throughout the country and exported to more than 40 countries and regions. According to the annual report, the market situation of the textile machinery industry in 2010 has generally improved. The cotton textile industry has announced the "A" spun yarn machine in addition to the previous announcement of the elimination of all textile equipment before the founding of the people's Republic of China and the word "1". The main business of the company is in the process of replacing the low gross profit products with high margin products. The order situation is very sufficient. Anxin Securities believes that the profitability of the company's main business is at the bottom of the rebound stage.

　 Becoming a financial shadow stock is guaranteed.

In addition to traditional business, the company has created more profit models in recent years. In 2010, the company acquired 36% stake in China International Trust 36% yuan at the total price of 1 billion 200 million yuan. The annual report of the company has disclosed that since the beginning of August 2010, the fusion trust has entered a consolidated statement, which has contributed 140 million yuan net profit to the company, accounting for 57% of the company's net profit.

By the end of 2010, the assets of China financial trust management had reached 179 billion 937 million yuan, the average annual growth rate was 59.42% in the past three years, and the operating income and net profit in 2010 were 1 billion 753 million yuan and 695 million yuan respectively, and the average annual growth rate in the past three years was 149.94% and 159.29% respectively.

Zhongrong trust's transferor Zhongzhe group has made a performance promise, and its net profit in the next three years is no less than 400 million yuan. The share transfer price will be paid in three installments. If the actual profit of the fusion trust is less than 400 million yuan in 2010 and 2011, the Jingwei Textile machinery has the right to deduct the difference between the 400 million yuan and the actual net profit after the transfer of the total amount of 600 million yuan in the two phases after the payment, and if the deductible amount is greater than the current transfer amount, the Zhongzhi group will make up for the company in full. If the net profit of China Trust Corporation is less than 400 million yuan in 2012, the difference between the net profit and the net profit will be fully compensated by the Zhongzhi group.

　　 Continuous improvement of the icing on the cake mechanism

In March 2011, the company announced that it would not exceed 12.11 yuan / share non-public offering of not more than 102 million shares, so as to promote state-owned assets. Value preservation and appreciation China's textile machinery has subscribed for the shares issued by this company for 139 million yuan of its creditor's rights. The total amount of the proceeds raised is not expected to exceed 1 billion 231 million yuan. In addition to the above replacement of the Chinese spinning machine from debt to equity, it will replenish the Zhongrong International Trust Co with a net capital of 764 million yuan and add 327 million yuan of liquidity.

The company pointed out that the non-public offering will lay the foundation for the sustained and sound development of the trust and ensure that the proportion of the company's interest in the trust does not decline and maintain its holding status. This is consistent with the development strategy of the company's expansion of the new profit growth point on the basis of the original main business textile machinery. Anxin Securities pointed out that with the completion of the investment and expansion process of China Trust, the capital constraint that has long puzzled its development will be lifted, and its sustainability will exceed the market expectations.

A quarterly report shows that Jingwei Textile machinery still does not change the nature of heavy institutions. The core value of business (AI, net value, information) is mixed, and the new growth (love, net value, information) stock, Huaxia bonus (AI Ji, net value, information), GF growth (love, net value, information), China Ping An (601318) life insurance, Xinhua life insurance, rich country Shanghai and Shenzhen 300 (love, net value, information) are among the top ten shareholders.