Tsingtao Brewery (600600) 2019 First Quarterly Report Review: Volume and Price Rise to Promote Double Revenue and Profit

Tsingtao Brewery (600600) 2019 First Quarterly Report Review: Volume and Price Rise to Promote Double Revenue and Profit
First, the event overview Tsingtao Brewery released the 2019 first quarter report.At the core of the report, the company achieved operating income of 79.51 ‰, +11 for ten years.38%, achieving net profit attributable to shareholders of listed companies.08 ten percent.04%, achieving a basic income of 0.60 yuan / share. Second, the analysis and judgment of the rise in volume and price promoted the scale of the double-income report on revenue and profit, and the company’s revenue increased by +11.38%, net profit attributable to mother +10 for ten years.04%, the performance growth rate has been significantly faster than the previous quarter, of which revenue growth hit a new high since 14Q1.The company’s double-income revenue was mainly attributed to the company’s grasp of the possibility of domestic beer market recovery and consumption upgrade during the reporting period, accelerating the upgrading of its product structure and actively exploring domestic and foreign markets.From the perspective of sales volume, 19Q1 company gradually realized beer sales volume of 216.60,000 kiloliters, previously +6.6%, of which: the main brand “Tsingtao Beer” achieved sales of 117.50,000 kiloliters, +8 in the past.At 5%, high-end products such as “Augut, Fortune in the lead, classic 1903 and pure draft beer” achieved total sales of 58.80,000 liters, +10 in the past.5%.In general, the company’s product structure upgrade trend is intensifying; from the perspective of ton price, thanks to the lag effect of the company’s direct price increase on Qingdao premium brands in May 18, and the promotion of product structure upgrade, it is expected that the beer ton price of the company will fall by +5Up and down, continuing the upward trend. The increase in raw material costs led to a decrease in gross profit margin, and the two-factor resonance led to a rise in net profit margin: affected by the continued upward price of barley and packaging materials, the company’s gross profit margin reached 39 in 19Q1 under the background of the company’s direct price increase and product structure upgrade.66%, a slight fluctuation of 0 in 18Q1 a year.44 averages; net interest rate: benefit from the efficiency of cost allocation during the period (the cost rate in 19Q1 decreased by 0 compared to 18Q1).8 numbers, sales / management (plus R & D expenses) / financial expense ratios respectively changed -0.52 / -0.30 / + 0.02 units, of which the decline in sales expense ratio was due to the company’s optimization of expenses, strict control of expense usage, write-off and redemption processes, and enhancement of market verification speed measures) and other revenue revenue ratio (19Q1 other revenue revenue ratio 18Q1 Raise 0.38 scores). Under the background of increasing gross profit margin, the company’s net interest rate rose instead of falling, and the company’s net interest rate reached 10 in 19Q1.16%, an increase of 0 from 18Q1.96 units. Initial changes, the internal structure efficiency is expected to be optimized. The new board of directors will successfully complete the re-election. The new leadership will be open and strong, and will gradually promote the improvement of the company’s internal operations and accelerate the optimization of production capacity.The pace of structural optimization continued to advance. Compared with the actual production capacity in 17 years, the actual production capacity was reduced by 710,000 kiloliters. Therefore, the capacity utilization was reduced from 75 in 2017.33% further increased to 81.36%), rich product structure.At the end of 2017, Asahi allocated 18% of its equity to Fosun International. As a financial investor, Fosun pursues profits. It is expected that the company will improve internal efficiency and promote the progress of state-owned enterprise reform. Third, investment proposal is expected to achieve operating income of 273 companies in 19-21.9.5 billion / 285.40 ppm / 298.870,000 yuan, +3 for ten years.1% / 4.twenty four.7%; net profit attributable to listed companies is 17.40 ppm / 21.08 ppm / 25.0.8 billion yuan, +22 per year.3% / 21.2% / 19.0%, equivalent to 1.29 yuan / 1.56 yuan / 1.86 yuan, corresponding to PE is 37X / 30X / 25X.The overall beer sector is currently evaluated at 51.The company is estimated to be 24 times lower than the industry. In view of internal changes, the internal structure efficiency is improved and optimized. It is expected that the company’s performance growth will be faster than the industry average in the future.In summary, maintain the 武汉夜生活网 “recommended” level. 4. Risk warning: product risk, new product promotion is less than expected, food safety risk, etc.

Huafa (600325) performance review: sales, performance, high growth, high-quality resources, accelerated release

Huafa (600325) performance review: sales, performance, high growth, high-quality resources, accelerated release

Profit in 20181.

08 yuan, an annual increase of 42%, in line with expectations of Huafa’s 2018 results announced: operating income of 23.7 billion, an increase of 19%; net profit attributable to mothers of 2.3 billion, an increase of 42%, corresponding to profit 1.

08 yuan.

Revenue increased by nearly 20%, and investment income increased significantly.

The company’s long-term real estate development business income has increased by 19% annually to 22.7 billion, and the gross profit after tax has increased by 1 percentage point compared with the same period of the previous year, driving the gross profit after tax to increase by 23%.

Investment income of 6.27 million yuan (US $ 4.2 billion in 2017), minority shareholders’ profit and loss fell by 28%, and jointly promoted the increase in net profit attributable to mothers by 42%.

The net interest rate increased and financing costs remained low.

The company’s net debt ratio at the end of the period increased 13 times from the beginning of the year to 249%, which is at a high level in the industry.

The short-term company raised over 7.4 billion US dollars through the issuance of private placement bonds, mid-tickets, and the last-minute home purchase securities support plan. At the end of the period, cash in hand increased by 64% earlier.

At the end of the period, the company’s financing cost increased by 0 compared with the beginning of the year.

1 excellent to 5.

87%, the highest level in the industry.

The development trend is expected to exceed 80 billion per year in 2019, corresponding to an annual growth rate of 37%.

The company signed contracts in the first quarter with an annual growth rate of approximately 87% to 18.6 billion (Kerer caliber).

We expect the company’s annual budget to exceed $ 80 billion in 2019, a 37% annual increase, significantly exceeding the industry average.

Good value reserves and high quality.

At the end of the period, the company’s land reserve capacity construction area decreased by 14 compared with the beginning.

5% to 7.5 million square meters (of which 30% of the earth storage is located in the Guangdong-Hong Kong-Macao Greater Bay Area), and the unsold part of the area under construction overlaps.(Expected) 3 times.

Earnings forecast Taking into account the company’s sales acceleration, we 北京养生 raised our 2019 earnings forecast by 11% to 1.

37 yuan, 2020 profit forecast1.

70 yuan.

Estimates and recommendations companies currently have a sustainable response7.

3/5.

9x 2019 / 2020e PE ratio.

Maintain recommended level and raise target price by 18% to 11.

68 yuan (mainly due to the accelerated release of company performance), corresponding to 8.

5/6.

9x 2019 / 2020e target price-earnings ratio and 17% upside.

Risk adjustment cities have overweighted their adjustment policies; the financing environment has tightened.

Supor (002032) Company Research: Rebuilding a SEB in China

Supor (002032) Company Research: Rebuilding a SEB in China
Three-phase review of company growth.The company is a leader in small appliances and cookware, with a compound revenue growth rate of 22 since its listing in 2004.81%.The growth is divided into three stages. ① The first stage (1994-2007): completed the transformation from Shuangxi OEM to the leader in cooking utensils; ② The second stage (2007-2014): the major shareholder SEB Group settled in (holding 81%), Reinventing the company’s system and processes, bringing leaps and bounds to Supor in product development, channel efficiency and export orders; ③ The third stage (2014-present): the category moves from the kitchen to the living room, creating a Supor + WMF+ High-end brand matrix. The characteristics of the small home appliance industry and the competitive landscape jointly determine that the leader needs to expand through product expansion and omni-channel operating capabilities.Industry characteristics: structural opportunities are presented in a vast space (150 billion yuan in 2018). Leaders need to have: ① product iterative capabilities, promote the upgrading of mature categories to bring value to ascend; ② product expansion capabilities, grasp the opportunities to increase the penetration of emerging categories, and secure high-quality tracks.Competitive landscape: The three leading “US-Soviet Nine” KAs have an absolute absolute advantage, but long-tail brands still exist in online and third- and fourth-tier cities.Diversified traffic inlets place higher demands on leading omnichannel capabilities. The company has deep barriers to product innovation and channel operation capabilities.Product side: ① Internal training: from SEB to an efficient and scientific product research and development system 南京桑拿网 “innovation funnel”, which effectively integrates products, markets, and strategies to improve the development business conversion rate; ② External assistance: SEB prototype reserves are abundant, and it can continue to be a giant in the futureUpward.Channel side: In 2009, the SAP system was rebuilt, which opened up various departments of the industry chain to improve channel operation efficiency; the prospective layout sinks the market (2-3 years ahead of peers), and the e-commerce channel cooperates with Cainiao to integrate the dealer warehouse to solve the structural replacement of SKUAnd the confusion of the price system. Future space: high-end, multi-category and stable export.High-end brands: In 2017, it acquired the local operation right of German high-end cookware leader WMF. WMF has top-level process design capabilities and a richer product line. It can replace Supor’s strong manufacturing capabilities and a huge sales network in the future, showing continuous bright eyes. Category development: ① Master Chef: differentiated positioning, cut into the low-end market through e-commerce channels, and the compound growth in the next three years is expected to achieve more than 20%.② Environmental appliances: Accurately lay out the next Blue Ocean circuit (the market size is expected to reach 120 billion in 2023), and brand scalability will become the key in the future.Transfer of export orders: The company has a large new capacity reserve. Considering the high-end production capacity of WMF and the further transfer of environmental appliances of the SEB Group, there is room to double the export in the long run. Earnings forecasts and investment advice.We estimate that the company’s net profit attributable to its parent for 2019-2021 will be 19 respectively.31/22.17/25.53 trillion, with an increase of 15.7% / 14.8% / 15.2%, earnings per share 2.35/2.70/3.11 yuan / share.The company’s current price is 72.64 yuan, the corresponding PE is 30.9/26.9/23.3 times.Considering the company’s stable and high-quality elementary, scientific and efficient operating system and clear growth path, the first coverage was given a “Buy” rating. Risk warning: New category expansion is less than expected; SEB Group sales scale affects export orders, etc.

China Power Construction (601669): Annual performance surpasses expected strong growth in power investment operations

China Power Construction (601669): Annual performance surpasses expected strong growth in power investment operations

Net profit attributable to mother in 2018 was lower than expected China Power Construction announced its 2018 results: operating income of 2,946.

800 million, an increase of 10 in ten years.

7%; net profit attributable to mother 77.

0 million yuan, an increase of 3 in ten years.

8%; 18Q4 operating income was 992.

20,000 yuan, an annual increase of 24.

1%, net profit attributable to mother 16.

4 ‰, a decrease of 2 per year.

9%; due to increased earnings attributable to minority shareholders, net profit attributable to mothers was lower than our expectation.

The company’s highest gross profit margin increased up to 0.

7ppt, mainly due to the increase in the proportion of high 苏州桑拿网 gross margin power investment and operating business revenue; financial expense ratio decreased by 0.

4ppt, mainly due to increased interest income and net exchange gains; asset impairment losses increased by 136%, mainly due to increased bad debt losses; and the company’s net interest rate increased by 0.

4ppt to 3.

4%, and affected by the increase in profit and loss of minority shareholders, the net interest rate attributable to mothers decreased by 0.

2ppt to 2.

6%.

The decrease in the company’s net operating cash inflow in 2018 increased by 135 trillion to US $ 19.2 billion, mainly due to the company’s strengthening of cash management, receivable turnover accelerated, and payable turnover cash.

Net interest income from investment cash decreased by at least 78 trillion to 56 billion U.S. dollars, mainly due to the recovery of trust financing investment and investment expenditure rhythm.

Development Trends Power investment and operations have grown strongly.

In 2018, the company’s power investment and operating income increased by 46% each year, mainly due to the increase in installed installed capacity (gradual installed capacity growth).

8% to 1,348.

50 thousand kilowatts) and growth in power generation.

At the end of 2018, the company’s holding installed capacity under construction reached 2.1 million kilowatts (equivalent to 16% of the installed installed capacity of the holding company), which provided support for the future growth of power investment and operating income.

Infrastructure business continued to expand.

In 2018, the company’s infrastructure construction revenue increased by 12% annually, and the growth rate improved due to the impact of domestic infrastructure investment.

In 2018, the company newly signed 2,098 infrastructure non-investment financing business contracts.

$ 800 million, a 47% increase previously.

We expect the recovery in domestic infrastructure investment in 2019 is expected to drive the company’s infrastructure business revenue to accelerate growth.

Profit forecast Due to the reduction of the company’s planned investment in 2019, we expect that the progress of investment and financing engineering projects will be further improved, and the 2019e net profit forecast is reduced by 10% to 81.

800 million, 2020e net profit forecast 88.

0 million yuan (+7.

6%).

It is estimated and recommended that the company can currently sustain October 19th.

2x P / E.

We maintain our neutral rating and lower our target price by 23% to 5.

33 yuan, corresponding to October 19.

0 times P / E, 2% below current price.

The power generation volume of the venture-holding power plant was less than expected, and the construction progress of infrastructure projects was less 北京桑拿会所 than expected.

Li Xunlei: Why Can Beijing House Prices Become Higher?

Li Xunlei: Why Can Beijing House Prices Become Higher?

Why Beijing’s house prices later came to the original: Li Xunlei, Li Xunlei Finance and Investment (Reprinted, please indicate the source: WeChat public account lixunlei0722) Resident disposable income: When Beijing surpassed Shenzhen in 1996, I left Shanghai to work in Shenzhen for a simple reason.The salary level in Shenzhen is much higher than that in Shanghai, and the monthly salary I got while working in Shenzhen was about 8 times that when I was a college teacher in Shanghai.

From the data of the National Bureau of Statistics, the average expenditure level of Shenzhen still exceeded Shanghai and Beijing during 2000-12, but the gap was gradually narrowing.

  Comparing the temporary disposable income of urban residents over the years, it was found that in 2002, similar disposable income of Shenzheners was almost the same as that of Shanghai. Shanghai surpassed Beijing, but the rate of increase was not large.

  Shenzhen, Shanghai, and Beijing. Percentage of disposable income ratio of residents in three cities. Source: National Bureau of Statistics, China-Thailand Securities Research Institute. In my memory, housing prices in Shanghai have risen since 2002-03, but housing prices in Beijing are still very high.Low, although Shenzhen is higher than Shanghai, it has been a bit flat in those years.

The figures quoted below are derived from Wonder, but do not seem to agree with my memory.

  The reason for using the data of second-hand housing transaction prices is that in the past few years, the first-hand commercial housing has been limited in price, so the price of the first-hand housing is not in line with the market price.

  Beijing, Shanghai, Shenzhen average price of second-hand housing transactions Source: WIND, Photograph by Wu Jialu of China-Thailand 深圳桑拿按摩网 Securities Research Institute In theory, house prices are related to the income level of local residents, so there are calculation formulas such as “house price income”.

Therefore, earlier in the year of 2013, the minority residents’ disposable income of Shenzhen residents still surpassed that of Beijing and Shanghai. Therefore, it is reasonable for the average property price to exceed that of Shanghai.

  But after 2013, people in Beijing and Shanghai may have more disposable income than Shenzhen, which may be one of the reasons why the average property prices in Shanghai and Beijing surpass Shenzhen.

  The reason why the income of residents is not the only reason for housing prices is that housing resources also include scarce resources such as education, medical care, cultural and entertainment convenience. In this regard, Shenzhen is not as good as Beijing and Shanghai.In addition, Beijing’s college resources are beyond the reach of Shanghai, so the “gold content” of Beijing and Shanghai hukou is greater than Shenzhen.

  Why can Beijing’s residents’ income surpass the three major cities in Shenzhen? Beijing’s housing prices later rose to become the nation’s highest housing prices. Although there are many reasons, they are consistent with the artificially controlled income’s later rankings.

So, why can Beijing ‘s per capita income level be only half that of Shenzhen and then surpass Shenzhen?

  I think there are three major reasons: First, state-owned enterprises have gone through a process of developing from disadvantages to advantages.

In the 1990s, state-owned enterprises may face a large-scale, too many laid-off workers, while foreign and private enterprises have higher incomes, and the pay levels of state-owned enterprises and institutions have been replaced. Therefore, as the most open special zones, as private enterprises and richThe relatively high geographical area of Shenzhen has attracted foreign and private enterprises from all over the country who have flowed to Shenzhen.

  Therefore, before 2000, the days of state-owned enterprises were generally difficult, and even the current banks had severe bad debts. This was mainly due to backward management and many disadvantages. After 2000, through China’s entry into the stage of heavy chemical industrialization, the development of state-owned and private enterprises was almostGo hand in hand.

But after the 2008 US subprime mortgage crisis, the era of high growth of private enterprises seems to have ended, and the comparative advantage of state-owned enterprises has gradually formed.

  According to the data provided by the National Bureau of Statistics, the average annual salary of urban non-civilian units in 2017 was 74,318 yuan, while the average annual salary of employees in urban residential units was 45,761 yuan, the former being one of them.

62 times, the difference is very obvious.

Beijing’s private economy accounts for a relatively small proportion, and the domestic economy accounts for a large proportion. This means that Beijing’s resident income has grown faster than Shenzhen’s.

  Secondly, from the perspective of industrial structure, after 2008, the heavy chemical industry has entered the later stage, and the proportion of the tertiary industry has gradually increased. However, a large number of service industries such as finance, telecommunications, education, and medical care have been basically monopolized.The cost is high, and the lack of technical and talent advantages makes it difficult to enter. Because the competition of private companies is constantly being reduced, the level of employment of employees is equal to non-private companies.

  In 2017, Shenzhen’s tertiary industry accounted for the highest proportion.

The average salary of the tertiary industry is generally higher than that of the secondary industry.

For example, the top three industries with the highest salary in 2017 are all tertiary industries: information transmission and software and information technology services, finance, scientific research and technical services.

This can explain why Beijing and Shanghai, two large state-owned enterprises, account for far more than Shenzhen’s cities, and their income levels eventually surpass Shenzhen’s.

  Third, gradually increase the degree of economic monetization. In capitals that integrate education, medical care, cultural and entertainment resources, and administrative resources, the proportion of hidden income in the income structure of residents may exceed Shanghai and Shenzhen.

Although education and medical system reform have been progressing, the degree of industrialization or marketization is still not high. The non-market pricing of scarce resources will inevitably avoid the phenomenon of rent-seeking; the performance of deregulation and decentralization is obvious.But it is difficult to eradicate corruption.

  At the end of 2017, Beijing’s permanent population was 21.71 million, Shanghai was 24.18 million, and Beijing was nearly 2.5 million fewer than Shanghai.

According to the National Bureau of Statistics, the disposable income of residents in Shanghai is still slightly higher than that in Beijing.

However, in 2017, Beijing’s catering industry’s revenue was 102.9 billion, surpassing Shanghai; everyone said that eating in Guangdong, but Beijing’s catering industry is obviously more developed than Guangdong.

  Beijing and Shanghai have the number of top 500 restaurants in China. Source: Beijing Commercial Daily, Beijing Statistics Bureau is not only better than Beijing in terms of food consumption, but also the per capita savings of residents are far less than Beijing. At the end of 2017, Beijing residents saved2.

896 trillion, which is more than 460 billion higher than Shanghai.

  Beijing, Shanghai, and Shenzhen residents ‘savings data Source: WIND, China and Thailand Securities Research Institute Wu Jialu Photo courtesy In fact, hidden income may not be reflected in residents’ savings, but also includes property, antiques, art, precious metals and luxury goods, Even cash (such as tons of cash found in the homes of very few officials).

  According to the data provided by the National Bureau of Statistics in 2017, although Beijing’s real estate added value exceeded that of Shanghai, at the end of 2017, Beijing residents’ mortgage balance was only 9664.

50,000 yuan, increasing residential mortgages by 1366 per year.

300 million, 1075 less than the previous year.

700 million.

  It is regrettable that Shanghai did not find data on residential housing loan balances at the end of 2017, and the Shanghai headquarters only released the incremental “Shanghai home and foreign currency personal housing loans increased by 1,528 in 2017.

8.1 billion yuan, a year-on-year increase of 1823.”6.2 billion US dollars”, which is basically a bucket budget. Shanghai’s residential home purchase loans in both the balance and the annual increase in scale have exceeded Beijing. Therefore, Beijing’s one-time payment of home buyers may far exceed Shanghai.

  Capital housing prices rank first in the country. It is very unreasonable. Although Shenzhen has always been at the forefront of reform and opening up, it has also produced a number of outstanding domestic private enterprises such as Huawei, Tencent, Vanke, BYD, and Ping An. However, due to the secondary industry in Shenzhen,The proportion is relatively high, so the average disposable income of residents has been overtaken by Beijing and Shanghai.

  So, ranking Shenzhen, and since the reform and opening up, have Beijing and Shanghai also created many outstanding private enterprises?

There should be many, such as Beijing’s Lenovo, Baidu, Jingdong, Xiaomi, etc., Shanghai’s Fosun, Junyao, etc., but it feels inferior to Shenzhen.

  Shenzhen, as a reform and opening-up city with the highest marketization level, has created many miracles and countless merits. However, the growth rate of residents ‘dominated income has actually declined in the past 10 years, and it is finally lower than that of Beijing and Shanghai.This requires reflection.

  In my opinion, the question that needs to be considered most is how has the allocation of social resources been achieved in the past 20 years and the flow has been reasonable?

For example, it was proposed in 1990 that Shanghai should build four centers including the international financial center. Despite the efforts of nearly 30 years, the scale of Shanghai’s financial industry added value is almost the same as that of Beijing.

Why does Beijing not need to work very hard to develop the financial industry, but it can do so much?

  The proportion of Beijing’s tertiary industry has been generally consistent with that of the United States and other countries, because one party, two meetings, four major commercial banks, three major policy banks, and state-owned insurance giants are all in Beijing. Among the top 500 global companies, the number of headquarters in Beijing far exceedsShanghai, this is a typical administrative resource.

  Agglomeration of administrative resources will bring a lot of disadvantages. Therefore, the policy must always adhere to “to allow the market to play a decisive role in the allocation of resources.”

In fact, the establishment of the Xiong’an New District and the relocation of the Beijing Municipal Government to Tongzhou are aimed at decentralizing administrative resources, driving the migration of other scarce resources, and preventing various disadvantages caused by excessive accumulation of resources.

  It may be Washington, DC in the United States, it is also the political center of the United States, New York is an economic and financial center, and the division of labor is very clear. However, Washington ‘s housing prices rank sixth among major U.S. cities, but the median price of housing in Washington, DC is 40More than ten thousand dollars, while New York is more than six hundred thousand dollars.

It can be seen that Washington does not have the administrative power to gather excessive resources.

  So how will Beijing’s future change itself?

I think it should be “de-financialization” and “headquarters economy”.

As a capital, Beijing is, of course, a political center and an administrative center. At the same time, as a well-known dense city of universities, it can also maintain its advantages of internal education and scientific research centers, but the role of financial centers and headquarters of central enterprises should not be long-termAlready.
  In addition to the millennium plan for the establishment of the Xiong’an New District and the removal of the Beijing Municipal Government from the central area, it is more important that the market play a decisive role in resource allocation and can be truly replaced.

This requires further simplification of administration and decentralization, and implementation of an increased list.

  If the highest indicator is used to measure whether the decisive role of market allocation of resources is correctly interpreted, theft can be seen as an indicator, that is, whether Beijing’s housing price level has previously retreated to third, that is, restored to the order of 10 years ago: ShenzhenFirst, Shanghai is second, Beijing is third.

After all, Washington’s housing prices rank only sixth in the United States.

Huafang (600448): plans to add medical masks under epidemic conditions

Huafang (600448): plans to add medical masks under epidemic conditions

In accordance with the deployment requirements of the disease prevention and control work of the Binzhou Municipal Government and the company’s market development needs, it plans to use self-raised funds of 10 million yuan to invest in the construction of a sterile workshop in the Huafang Industrial Park to produce medical masks and protective clothing.The workshop area is 1500 square meters and the construction period is 3 months.

Brief comment on 1, 44 years of history of textile printing and dyeing state-owned enterprises, one of the leading printing and dyeing companies. The brand strategy company is located in Binzhou, Shandong. The predecessor was founded in 1976 and has a history of 44 years. It is a joint effort of the National Textile Industry Bureau and the Shandong Provincial People’s Government.Recommended by the China Securities Regulatory Commission for listed companies listed in the 1997 National Textile Industry Bureau.

In 1999, Huatou Corporation and Shandong Binyin were the main sponsors. They jointly established three companies, including Yaguang Textile, Shanghai Xueling, and Huifeng Textile, and listed in 2001.

At present, the company is affiliated to the State-owned Assets Supervision and Administration Commission of Binzhou City, with printing and dyeing as its main business, forming a diversified development model that includes textiles, printing and 南京桑拿网 dyeing, home textile products, clothing, thermal power, real estate and financial and information services.

According to the company’s official website, the main industry area can achieve annual production capacity: printing and dyeing cloth 4.

500 million meters, more than 10,000 varieties; 20.7 million bedding products (sets); 3 million garments.

In 2018, the company’s revenues from printing and dyeing, home textiles, clothing, cotton yarn, and grey fabrics were 83.

5%, 7.

9%, 3.

0%, 3.

0%, 1.

1%.

The company’s sales network covers all major domestic textile markets and some North American, African, Southeast Asian and other international markets. Its partners include large international brands and retailers. In 2018, its export revenue accounted for 84%.

At the same time, the company continues to cut into the terminal market based on home textiles, and promotes its brand strategy. It has its own brands such as “Huafang”, “Blue Platinum”, “Xiao Ni”, “Enoord”, “Fangwei”, among which Blue Platinum Home TextilesIt has Tmall, JD.com flagship stores, and brand experience stores in major domestic cities such as Beijing, Shanghai, Tianjin, Guangzhou, Suzhou, Xiamen, and Qingdao.

2. To ensure the supply of anti-epidemic materials and increase the use of medical masks / protective clothing as a long-term business epidemic, the demand for protective clothing in hospitals and other scenes has also skyrocketed. Under the guidance of the government, listed companies in the textile and clothing sector have actively transformed and expanded masks and protective clothing.Production capacity to support the overall situation of epidemic prevention.

The company stated on the investor relations interactive platform on February 7 that according to the Binzhou Municipal Government ‘s epidemic prevention deployment requirements, the company temporarily switched some of its production capacity for the production of civilian masks. The output has reached 20,000 per day. Some companies use it for their own use, and the rest are handed in to government receipts.Storage, not for sale.

The company invested 10 million yuan in the construction of a sterile workshop in the Huafang Industrial Park to produce medical masks and protective clothing. The construction period of the project is 3 months, which still needs the approval of the Shandong Provincial Drug Administration.

The company announced that it expects to achieve an annual sales income of 80 million yuan after the project is completed, accounting for about 2% of total revenue in 20182.

45%, but it is estimated that the added profits and taxes will reach 13.05 million yuan, accounting for 61% of total profit in 2018.

7%, its net profit margin is significantly higher than the company’s current business, expected to significantly increase the company’s performance.

The company expects that all this fixed asset investment will be after the production is completed1.

It can be recovered within 63 years, and the actual production capacity reaches 77% of the original design capacity.

The company’s export of medical tooling to the United States accounts for about 10% of its revenue, mainly surgical gowns, medical care clothing, medical tooling, and nursing clothing. It has been continuously supplied for more than ten years, and has accumulated rich production experience and market channels.

The construction of an aseptic production workshop this time will be more powerful for market services and expansion. It will directly provide medical-grade classified protective supplies, and it must have a certain market share in the US market segment.

3. The supply of medical masks and protective clothing continued to recover, and the non-woven fabric transformation of the mask industry chain quickly recovered and smoothed. According to the Ministry of Industry and Information Technology, the current maximum production capacity of masks is more than 20 million per day.

As of February 3, mask production in 22 key provinces across the country has reached 1,480.

60,000 per day, an increase of 3 earlier on the 2nd.

1%, the capacity utilization rate reached 67%, an increase of 2 percentage points.

One of the most in short supply is the N95 mask.

60,000 per day, an increase of 48%.

Other medical masks were 9.98 million pcs / day, a 36% increase in the environment, and production capacity was gradually restored.

The Development and Reform Commission, the Ministry of Finance, and the Ministry of Industry and Information Technology also issued notices to clearly play the role of government reserves, support the response to the shortage of supplies, increase the value of production, and increase the production of key medical protective materials for enterprises.

The first batch of products purchased and stored by the government included medical protective clothing, N95 medical-grade protective masks, medical surgical masks, and medical disposable masks.

It is foreseeable that the increase in the throughput of masks and protective clothing will be a continuous event throughout the epidemic period.

Domestic medical masks are mainly divided into the following aspects: (1) Medical protective masks with the highest protection level; (2) Medical surgical masks commonly used in invasive operating environments such as operating rooms; and (3) General-level disposable medical masks.

General medical surgical masks are composed of a mask surface and a rubber band. The mask surface is mainly composed of three layers of non-woven fabric: two layers of spunbond non-woven fabric inside and outside, in which the inner layer has a certain moisture absorption function;Patient droplet transmission, etc .; The middle layer is polypropylene meltblown non-woven fabric. As the core part of medical masks, it can provide bacterial filtration efficiency in accordance with national standards and is the key to ensure that medical masks are more protective than civilian masks.

Meltblown non-woven fabrics are generally produced using materials weighing 20 grams, and the electrostatic particles with virus particles (national YY 0469-2004 “Technical Requirements for Medical Surgical Masks” stipulate that the average particle diameter is (3 ± 0).

3) The filtration efficiency of μm Staphylococcus aureus aerosol is not less than 95%), so it is necessary to perform an electret treatment on the melt-blown nonwoven fabric. From the perspective of the medical mask industry chain, the upstream raw material end is mainly polypropylene, and rubber materials such as butadiene and styrene, the midstream is a non-woven fabric manufacturer, the downstream manufacturers are manufacturers of medical medical mask production licenses, and the terminal channel is hospitalsAnd drugstores.

(1) Polypropylene: Its main suppliers are Sinopec, PetroChina, CNOOC and other subsidiary refining and chemical plants. Polypropylene pellets are made of high-melt-finger polypropylene fiber material for meltblown non-woven fabrics.

According to Zhuochuang data, the annual output of polypropylene fibers in 2019 is about 170 tons, of which high-melt polypropylene fibers that can be used as masks are about 95 inches. In order to meet epidemic prevention needs, some refineries of Sinopec are expected to continue to increase production of high-melt index polymers in 2 months.Ethylene fiber material.

(2) Non-woven fabrics: Developing countries are the world’s largest non-woven fabric producing, consuming and exporting countries. According to the China Industrial Textile Industry Association, the output in 2009-18 was 240.

9 initially increased to 593.

22 nominal, CAGR is 10.

5%, 453 from January to November 2019.

3 for the first time, growing by 11 per year.

1%, relative prosperity in the textile industry.

At present, spunbond, acupuncture, and spunlace products account for about 50%, 23%, and 11%, which are the three main categories. Meltblown nonwovens account for a small proportion, about 1%.

At present, the non-woven fabric production capacity is mainly concentrated in Guangdong, Zhejiang, Hubei, and Fujian provinces. Among them, Pengchang Town, Xiantao City, Hubei is the national non-woven fabric production center. The main manufacturers include Xinlong Holdings, Zaisheng Technology, Nuobang Shares, and Teda.Wait.

Major manufacturers of meltblown non-woven fabrics include Jiangsu Liyang, Xinlong Holdings, Shanghai Jingfa, Teda, etc., and will gradually improve through the resumption of the Spring Festival and continuous government coordination.

(3) Masks: masks have a high degree of automation in the production process and are not difficult to mass produce.

It is said that the textile economic information network, a typical mask production line machine can produce 54 masks per minute, full load can reach 50,000 pieces / day, if the transformation can be further accelerated.

According to the data of the day’s eye inspection, more than 21,000 companies are involved in the production and operation of masks each year (including upstream and downstream related companies).Aseptic conditions are high, which is insufficient for increasing the capacity of medical masks for ordinary textile enterprises.

In addition, medical masks need to be sterilized by intravenous injection. After subsequent analysis is passed, they can be officially shipped. The standard procedure for analysis and disinfection takes 7 days to half a month.

Investment suggestion: The company’s corresponding government call to actively respond to the impact of the epidemic, and some of its production capacity will be converted into civilian masks, which will be an opportunity to increase the business of medical masks and protective clothing.

After successful production, the company will become one of the few listed companies in the textile and apparel sector that can provide medical masks and protective clothing, and it will also become one of the domestic medical mask suppliers with a low proportion.

After the upcoming epidemic, the country will further improve the balanced distribution of medical product throughput, which is expected to give certain support. As the company’s first local medical mask and protective clothing, the order stability has been improved, and its profitability exceeds the existing textile printing and dyeing.business.

Risk factors: the subsequent development of the epidemic; macroeconomic and overall retail changes affecting the company’s main textile industry; future sales and profitability of medical masks and protective clothing are less than expected.

Texhong (002419) 2018 Annual Results Express Review: Real Estate Impact, Future Industry Model Innovation, Store Expansion Continued

Texhong (002419) 2018 Annual Results Express Review: Real Estate Impact, Future Industry Model Innovation, Store Expansion Continued

This report reads: Revenue growth is slightly faster than expected. It is expected that the margins will improve in Q1 2019, store expansion, business expansion will bring growth, obvious operating advantages, and incentive mechanisms to help development.

Investment Highlights: Maintain Overweight rating.

According to the performance report, the EPS for 2018 is reduced to 0.

75 (-0.

03), maintaining EPS 0 for 2019-2020.

89, 1.

07 yuan, maintaining a target price of 15.

13 yuan.

Land impact, income growth was slightly lower than expected.

The company achieved revenue of 191 in 2018.

38 trillion, ten years +3.

25%; net profit attributable to mother 9.

0 ppm, +25 a year.

92%; EPS 0.

75 yuan.

Q4 single quarter revenue was -5% to 53 trillion, and net profit attributable to the parent was + 2% to 2.

3 billion.

Excluding the impact of real estate, 2018 revenue is +4 per year.

45% / profit maximum budget +30.

58%, single-quarter revenue in the fourth quarter was two years -0.

64% / total profit + 24%.

Store expansion will continue in 2019 to maintain growth.

The growth rate forecast for Q4 is expected to be mainly merged to a relatively high Q4 base in 2017, replacing the main effect of the warm winter effect in South China. 青岛夜网 The same store in Q1 2019 will help stabilize.

We will continue to expand stores in 2019. It is expected that we will maintain 8-10 large stores and 30+ supermarkets. The number of large and small stores has reached 20+, which will increase the success rate of opening stores, and continue to promote the goal of reducing losses for large stores.

Three strategies of experiential, digital and supply chain practice new retail development.

Texhong is positioned as a “life center for enjoying happy hours”. Stores experience upgrades to increase customer flow and repurchase. At present, the experiential format accounted for 40%. The one store, one strategy operation idea effectively grasps the customer demand for customized consumptionIn January 2019, the first retail + catering format “Hongshihuihui” was launched to meet the demand for consumption upgrades, thus planning to land 20+ homes.

Continue to digitize products and users, digitize more than 16 million members, and deepen the empowerment of middle and back offices to improve operational efficiency.

The optimization of supply chain has been strengthened, international procurement has been increased, and private brands and direct production sites have increased gross margins in proportion.

Risk warning: economic fluctuations affect consumption, and industry competition is intensifying.

Changchun High-tech (000661): The restructuring plan is finally released and the governance structure is re-optimized

Changchun High-tech (000661): The restructuring plan is finally released and the governance structure is re-optimized
The company announced the acquisition of Jinsai Pharmaceutical 29.The restructuring report of 5% equity and replenishment of funds raised was incorporated into the shareholders’ meeting on June 21 to replace the plan.We maintain our profit forecast. Based on the net profit and equity after the reorganization, we forecast 2019?The EPS in 2021 will be 8.87/11.51/14.38 yuan, currently 19pe 33x.The company’s recombinant protein is driven by two-wheel drive, and Jinsai Pharmaceutical’s equity problem is on the horizon, and it continues to be highly recommended. Acquisition of Jinsai Pharmaceutical remaining 29.Brief introduction of 5% equity reorganization plan, this transaction consists of two parts: First, the issue of shares and convertible bonds to purchase Jinsai Pharmaceutical 29.5% equity; Second, no more than 1 billion is raised through non-public offering of shares, all of which are used for replenishment. Jinsai Pharmaceutical’s overall assessment 202.320,000 yuan, this transaction corresponds to 29.The 5% consideration is 56.3.7 billion. Issue of share payment consideration 51.8.7 billion, accounting for 92.02%; convertible bonds 4.5 billion, accounting for 7.98%. The initial conversion of shares issued for the purchase of assets and convertible bonds were previously 173.69 yuan / share.Listed company Xiang Lei (holds Kinsey 24.0% equity, this time transfer 23.5%) The number of shares issued is approximately 23.26 million shares, corresponding to 40.4 billion; 4.5 million convertible bonds, corresponding to 4.5 billion.The listed company issued approximately 6.6 million shares to Lin Dianhai (holding 6% of Jinsai’s equity), corresponding to 11.4.6 billion.After completion (the total conversion of convertible bonds and the increase of the share capital without taking into account the subsequent non-public offering of funds), the share ratios of Jin Lei and Chaoda Investment Holdings are 12.78% and 18.78%. The 19-year performance commitment corresponding to Kinsey pe is estimated to be 13x, which is in line with our 12?15 times pe’s expectation, both the shares issued for the purchase of assets 南宁桑拿 and the restricted period for the sale of convertible bonds are 3 years.Jin Lei and Lin Dianhai promised that Jinsai Pharmaceutical’s net profit from non-attribution to mothers in the years 19-21 will not be less than 15.55 billion / 19.48 billion / 23.2.3 billion (corresponding to a profit growth rate of 38% / 25% / 19% in 19-21), the 19-year performance commitment corresponds to only pe 13x.The shares issued for the purchase of assets and the restricted sale period of convertible bonds are both 3 years. After the annual results are released in 19-21, if the profit commitment level is reached, 33%, 33% and 34% of the current issuance will be unlocked, respectively.Shares and convertible bonds. The reconstruction plan was finally released, which is beneficial to Changchun High-tech from two aspects: the transformation, and the EPS has increased significantly by about 12%.We will use the current consistent 10% discount as the fixed price for matching financing, and we will not consider convertible bonds to stocks for the time being. After the restructuring, it is estimated that the EPS will increase by 11 in 2018.3%, 2019 forecast EPS growth 12%.The increase was basically in line with our previous expectations. At the same time, the completion of the reorganization has solved the long-term governance structure problems faced by Changchun High-tech, which has increased the scope of prediction. In the past, Mr. Jin Lei, a core member of Jinsai Pharmaceutical, a core subsidiary of Changchun High-tech, had not held shares in listed companies.Consistent interests.If this reorganization is completed, Mr. Jin Lei will hold shares of listed companies with completely consistent interests, and the driving force for performance release will be further expanded, which will significantly increase the income of Changchun Hi-tech. Profit forecast and rating.Us Air Force for 2019?2021 Jinsai Pharmaceutical’s profit forecast is 15 respectively.6, 21.1,27.500 million, respectively, 0 higher than the performance commitment.5%, 8.5% and 18.5%, we judge that the net profit of Jinsai Pharmaceutical in the next three years can exceed the commitment, so we do not adjust our performance expectations and maintain the EPS forecast before the reorganization7.92/10.39/13.20 yuan.If the share capital after the reorganization (using the current sustainable discount of 10% as the set financing price), the EPS is 8 respectively.87/11.51/14.38 yuan, currently expected to correspond to 19pe is estimated to be 33x, continue to strongly recommend. Risk reminder: The reorganization needs to wait: Jilin Provincial State-owned Assets Supervision and Administration Commission approved, approved by the shareholders meeting, and approved by the CSRC.

Jinshi Resources (603505): 2019H1 performance growth increased by 161% volume and price go up logic

Jinshi Resources (603505): 2019H1 performance growth increased by 161% volume and price go up logic
Event company released the semi-annual report for 2019. In the first half of 2019, the company achieved revenue3.580,000 yuan, an increase of 62 in ten years.77%; net profit attributable to mothers1.110,000 yuan, an increase of 160 in ten years.67%; net profit after deduction of 10.720,000 yuan, an increase of 167 in ten years.80%; EPS is 0.46 yuan, an annual increase of 155.56%. A brief comment on the rise in volume and price of fluorite products, the company’s performance continues to increase, its profitability has further enhanced the transparency of the report, and the company has achieved revenue3.580,000 yuan, an increase of 62 in ten years.77%; net profit attributable to mothers1.110,000 yuan, a substantial increase of 160 each year.67%; Of which, in Q2 2019, net profit attributable to mothers was 69.23 million yuan, an 四川耍耍网 increase of 214% year-on-year and an increase of 66% from the previous quarter.82%.According to the number of reports, under the background of tight supply and strong demand in the fluorite industry, the company’s product volume and price have risen, spurring rapid growth in performance.The comprehensive gross profit margin reached 62%, an increase of 12 percentage points over the same period last year.; Net profit margin reached 31%, an increase of 12 percentage points over the same period last year., Profitability continued to increase. In terms of quantity: with Amethyst Mining (grade 30% +, raw ore output 30 tons, annual output of refined fines is expected to be around 11), normal production was completed after commissioning in November 18, and the company’s production and sales of fluorite in the first half of 19 were 杭州桑拿 significant.increase.Among them, acid-grade fluorite fine powder sales reached 9.11 Initially, annual growth of 22%; high-grade fluorite lump ore sales4.52 Initially, the annual growth rate was 195%; steel-grade fluorite fine powder sales were zero.50 Initially, the year fell by 76%; the total sales of fluorite products reached 14.25% growth rate, 28% per year. In terms of price: In the first half of 2019, due to the impact of the Xingye mine disaster in Inner Mongolia, the recovery of fluorite mines in Inner Mongolia gradually exceeded expectations after entering the spring, resulting in continued tight supply in the fluorite industry and rising prices in the off-season.The average price of the company’s acid-grade fluorite refined powder reached 2,563 yuan / ton (excluding tax), which gradually increased by 416 yuan / ton, which was 135 yuan / ton higher than the average price in 2018. In terms of cost: The average cost of acid-grade fluorite refined powder produced by major companies is reported to be 1,142 yuan / ton, which is 60 yuan / ton higher than the 1,082 yuan / ton in 2018, mainly due to: 1) the proportion of dried products in sales has increased,Drying costs increased; 2) The proportion of outsourced raw ore increased. The results for the second half are worth looking forward to.At present, Xiangzheng Mining (grade 50% -60%, raw ore output 15 is expected, and the annual output of fine powder is about 7-8 tons). The equipment installation and commissioning are basically completed in the second quarter.In May and June, the output of high-grade fluorite lump ore was about 5,900 tons, and the fluorite fine powder was about 3,200 tons. The output increased in July, and the normal operation of the unit in the second half of the year will bring a significant increase in profits.In addition, due to the technological upgrade of Xiangzheng Mining, mining in theory can be carried out in winter, which is more efficient than other Inner Mongolia fluorite mining. The tightness of suppliers is the main theme of the industry. The price of fluorite is supported. Recently, the downstream and downstream refrigerant industry has gradually shifted to the off-season. The mainstream price of refined fluorite powder has dropped from 100-200 yuan, and the market price has remained at around 3,000 yuan.In terms of price, there is still strong support.In the long run, along with the Fluorite Mining and Production Control Regulations, the Fluorite Industry Access Standards have been released one after another, the industry entry barrier has been significantly raised, and the industry’s “small, scattered, random” capacity has continued to withdraw, and fluorite supply or willLong-term tightening, the price center shows an upward trend. On January 25, 2019, the Ministry of Industry and Information Technology issued the “Specification Conditions for the Fluorite Industry (Consultation Draft)”.Document requirements: 1) “The development of the fluorite industry should be based on domestic demand, optimize the inventory, adjust the structure, promote mergers and reorganizations, and increase the concentration of the industry.New and expanded fluorite beneficiation projects should be combined with the elimination of backward, and encourage the development of fluorite beneficiation and processing in resource-rich areas; 2) “Requires that the amount of ore mined for new fluorite projects should not be less than 5 per year / before the implementation of this specificationIf the project that is put into production is expanded, the amount of ore mined shall not be less than 2 mm / year “; 3)” Encourage the construction of professional beneficiation lines in the concentrated mining area, and support the construction of matching self-provided mines, tailings ponds, sewage (material)Facilities “and so on.During the mining process of fluorite, high-fluorine wastewater and tailings slag will be produced. There are no safety and environmental protection facilities in small mines in the industry. It is a general trend to implement standardized mining and industry integration in the future. Adjacent to the absolute leading position, leading the industry development company Fluorite has a reserve of about 2,700 tons of ore, corresponding to about 1,300 tons of minerals, and all belong to a single type of fluorite mine, of which only 6,000 available resources have been provenAbout the initial amount of minerals, the company accounted for more than 20% of the country.The company’s existing mining scale exceeds 102, with 7 mines and 5 ore dressing plants (another one is under construction).The company has 6 large-scale fluorite mines with an annual output of 10 higher than the above, ranking first in the country.In addition, the company has environmental protection mines, complete safety facilities, and professional talents. It is an absolute leader in the industry. In 2018, as the main sponsor, the “China Mining Federation Fluorite Industry Development Alliance” was established to lead the industry development. Preliminary cooperation agreement to further promote the integration of fluorite resources In November 2018, the company and the Inner Mongolia Geological and Mineral Exploration Company, Zhejiang Geology and Mining Investment Company, and the People’s Government of Ejin Banner, Inner Mongolia Autonomous Region, signed a proposed cooperation framework agreement to implement the fluorite mine asThe main non-metallic mineral resources exploration, mining development, deep processing and other areas of cooperation, all parties strive to take 5-10 years to achieve the project company survey, mergers and acquisitions and other methods to have 3,000 prospectable prospective resource reserves, andThe total supporting investment is expected to be about 2 billion yuan.At the same time, it cooperated with Ejin Banner State-owned Assets Group Corporation, Inner Mongolia Geological and Mineral Exploration Company, and Zhejiang Geology and Mineral Investment Company to set up Inner Mongolia Jinshi Industry Co., Ltd. in Ejin Banner to integrate and develop local fluorite-based mineral resources. China’s fluorite deposits are mainly distributed in Hunan, Inner Mongolia, Zhejiang, Jiangxi, Fujian and other places. These provinces and autonomous regions account for 79% of the country’s total basic reserves.Among them, Inner Mongolia’s reserves rank among the top three in the country. As of the end of 2017, the reserves of fluorite resources have reached 3456 tons.Through this cooperation, the company will enter Ejin Banner, Inner Mongolia, which is rich in domestic fluorite resources. This is an important step in the integration of fluorite resources following the company’s acquisition of Inner Mongolia Xiangzhen in January 2018. It is recommended to pay attention to maintaining the “Buy” rating and expect to realize net profit attributable to mothers in 2019-2020.96, 3.470,000 yuan, the EPS is 1.23, 1.45 yuan, corresponding to PE of 16X, 14X, maintaining the “buy” level.

Weixing New Materials (002372): Performance growth in line with expectations Profitability remains strong

Weixing New Materials (002372): Performance growth in line with expectations Profitability remains strong

Matters: The company released its 2018 annual report, reporting a series of realized income45.

7 billion, an annual increase of 17.

08%, net profit attributable to mother 9.

7.8 billion, an annual increase of 19.

12%.

Basic income is 0.

75 yuan.

The company plans to send 6 yuan for 10 transfers and 2 yuan (including tax).

Ping An’s view: Long-term performance growth is in line with expectations, and profitability remains strong: Reporting growth rates, the company’s performance growth remains stable, and the revenue growth rate of each segment is: PPR (+18.

1%), PE (+13.

0%), PVC (+15.

1%); quarterly, 18Q1?
18Q4 single quarter revenue growth was 20.

2% / 17.

5% / 10.

0% / 20.

7%, the net profit attributable to mothers in each quarter increases by 29 each year.

2% / 21.

6% / 15.

3% / 17.

3%.

Since 2018, in the context of the rapid rise in prices of upstream raw materials, the company has successfully reduced cost pressure downstream, and its profitability has remained strong: the company’s gradual gross profit margin was 46.

77% (+0.

05pct), net interest rate 21.

41% (+0.

37pct), the gross profit margin of each product is: PPR (58.

7%, +0.

4pct), PE (33.

1%, -1.

4pct), PVC (28.

8%, -0.

9pct).

The implementation of the new management mode promotes the downward trend of the expense ratio, and the improvement of the account receivable level: the report, obtained the adjustment of the sales organization structure and the implementation of the new management mode, the company reduced the expense ratio.

25pct to 21.

25%, of which: sales expense expenses13.

68% (-1.

34pct), management expenses cost 7.

91% (+0.
21pct), financial expenses expense -0.
34% (-0.

13pct).

The report summary, due to the growth of engineering business, the company’s account receivables have increased, and the company’s accounts receivables accounted for 6 of the revenue at the end of the reporting period.

1%, ten years +0.

7 points.

The company’s cash-to-cash ratio was 114%, a decade of -3.

3 points.

“Retail + Engineering” strategy guarantees performance growth and international development begins a new voyage: The company actively implements the “Retail + Engineering” two-wheel drive strategy, actively builds three major business systems of retail business, construction 杭州桑拿 engineering, and municipal engineering, and promotes cross-regional expansionMarket share helped the company’s performance to maintain steady growth.

At the same time, the company will give full play to the advantages of existing channels and accelerate the development of “waterproof, water purification” business, which will inject new development energy into the company.

In addition, the company accelerated its internationalization strategy (overseas revenue in 2018 increased by 25 per year.

8%, the proportion of the company’s revenue rose to 3.

5%), enhance the brand’s international visibility, improve the construction of international marketing channels, and open up new growth points for the company in the future.

Profit forecast and investment advice: The company takes the “retail + engineering” strategy as its outline, insists on the main business of fine and strong pipelines, and relies on the advantages of existing channels to actively expand to new businesses such as waterproofing and water purification, and its future performance will maintain steady growth.
The EPS for 2019-2020 is maintained at 0.

86 yuan, 0.

99 yuan, EPS is expected to be 1 in 2021.

13 yuan, corresponding to the current PE is 23.

4 times, 20.

3 times, 17.

9 times, maintaining the “recommended” level.

Risk reminders: 1. Substantial changes in real estate sales: The company’s main product, PPR pipes, is mainly used for water supply pipelines. If real estate sales change in the future, it will affect the company’s pipe sales and lead to the company’s profit growth; 2. Material prices will rise sharply: Company pipesThe cost structure of the original product is relatively high. If the price of raw materials rises in the future, the company will not be able to reduce the cost pressure downstream in a timely manner, which will affect the company’s profit;The less-than-expected promotion of waterproof materials will affect the sustainability of the company’s profit growth.