Fenghua Hi-Tech: the beneficiaries of high-performance elasticity under the passive boom period

Fenghua Hi-Tech: the beneficiaries of high-performance elasticity under the passive boom period
1. Fenghua Hi-Tech: Internationally renowned passive component supplier Fenghua Hi-Tech is an internationally renowned and established passive component supplier affiliated to the Guangdong State-owned Assets Supervision and Administration Commission. Since its establishment in 1984, the company has formed MLCC, chip resistance, FPC and other eightIndustrial layout of main products. According 武汉夜网论坛 to IEK data, the company is the largest MLCC supplier in China.  Benefiting from the improvement of the industry’s prosperity and the expansion of the company’s product categories and improvement of operating efficiency, the company’s revenue and net profit have continued to increase since 2015.The company achieved revenue of 33 in 2017.600 million yuan, net profit 2.47 trillion USD, an annual increase of 187%; according to the company’s Q1 2018 financial report, the company achieved net profit in Q1 of 20181.1.6 billion yuan, with an estimated H1 net profit of 2 in 2018.8-3.2% ten percent, an increase of 151-187% a year.  2. In the passive component industry represented by MLCC, look at the capacitors for the super boom period passive components, and see MLCC for the capacitors.Benefiting from the optimization of the industry’s supply and demand structure, (1) smartphone hardware upgrades, automotive electronics, and electric vehicles are booming, (3) downstream demand is strong, and (2) major suppliers such as Japan adopt conservative expansion strategies and old capacity switching leads to supplyThe production capacity is tight.  Based on our preliminary expansion of future global industry supply and demand, we believe that the global tight supply of MLCCs is expected to continue until 2019: (1) Japanese companies’ main new production is mainly concentrated in the field of automotive and high-end miniaturized products.) Japanese companies as a whole maintain a sound business strategy. Expanding production capacity and cumulative exits will lead the industry to effectively absorb sustainable industry demand. (3) Due to weak market share, mainland and Taiwanese companies will expand production to supply global industries.The pattern is difficult to have a large impact.  Among the three major passive inductors, capacitor resistance inductors often have common downstream demand scenarios and similar competitive structures (that is, Japanese companies cover higher capacity allocations around the world). Therefore, we believe that resistance and inductance prompted the price increase cycle to start after MLCC.  3. Under the business cycle, the performance elasticity of passive component companies is huge. Take MLCC as an example. This round of price increases has greatly improved the profitability of major suppliers within the industry. We choose SEMCO, which has a relatively high revenue from MLCC products. TaiwanYageo, and Taiwan’s Huaxinke, as cases, analyze the impact of the industry boom on the company’s profitability. We judge that under the passive component boom cycle, the performance of companies in the industry will have great performance flexibility.  4.Investment suggestion: We expect the company’s revenue in the years 18-19 to be 45.1/57.2ppm, of which MLCC and chip resistor revenue are 15 respectively.0/21.0ppm and 9.0/12.0 billion yuan.We expect the company’s net profit to be 7 in 18-19.09/9.5.5 billion yuan.Give the company a 6-month target price of 20.5 yuan (corresponding to 26 times PE in 2018), the first coverage, buy rating.  Risk warning: MLCC’s price increase rate and sustainability are less than expected; the company’s production expansion progress is less than expected1. Fenghua Hi-Tech: an internationally renowned passive component supplier1.1. Fenghua Hi-tech: Fenghua Hi-tech, a leading domestic MLCC company, is located in Zhaoqing, Guangdong Province. It was established in 1984. It specializes in high-end new military components and electronic materials, and has gradually become the largest domestic research and development, production and export of new-type components and electronic information basic products.Base, an internationally renowned new electronic component industry company with independent intellectual property rights and key technologies of core products.The company was listed on the Shenzhen Stock Exchange in 1996 with the code 000636.SZ.The company acquired a 100% stake in Zhuhai Naidian in 2015, and a 40% stake in Taiwan Everbright in 2016.  By the end of Q1 of 2018, Guangdong State-owned Assets Supervision and Administration Commission directly and indirectly held the company through its wholly-owned subsidiary Guangsheng Assets22.2% of the capital is the actual controller of the company.According to the official website information of Guangsheng Assets, in addition to Fenghua Hi-Tech, listed companies of Guosheng Assets include Guoxing Optoelectronics, Foshan Lighting, Guangsheng Nonferrous Metals, Dongjiang Environmental Protection, Zhongjin Lingnan, and so on.  The company operates separately for each business through the overall structure of branches, subsidiaries and participating companies. The relevant important companies are: Guanhua Branch (MLCC), Duanhua Branch (chip resistors), and Inductance Branch (inductors), Fenghua Core Power (discrete device), Zhaoqing Micro-Shuo (ferrite core), Zhuhai Nanopower (FPC), and Taiwan Optoelectronics (chip resistors, etc.), etc.According to IEK data, the company is the largest MLCC supplier in China.  1.2. Main products: MLCC started, covering eight major product series companies including capacitive resistance, discrete devices, FPC, etc. Initially started with MLCC. After more than 30 years of development, the company’s product line has been continuously enriched. At present, new electronic materials, capacitor series and resistors have been formed.Series, inductor series, magnetic materials and devices, semiconductor packaging and testing and devices, sensitive components and multilayer soft and hard combined FPC and other 8 major product series.  The company has a broad market area and rich customer resources, and one-stop supply capabilities from materials to devices, which can be integrated for electronic equipment such as communication, consumer, computer, automotive electronics, lighting appliances, industrial control, etc.Supporting scale production capacity.  1.3. Revenue has grown steadily and profitability has continued to improve. In 2017, the company achieved operating income of 33.600 million yuan, a year-on-year increase of 21%. The company’s historical revenue growth trend has mainly benefited from the expansion of the company’s product categories and capacity expansion.In 2017, the company achieved net profit attributable to mothers2.6.2 billion yuan (after accrued asset impairment), an increase of 181% year-on-year, mainly benefited from the improvement in profitability brought by the improvement of the prosperity of the passive component industry since 17 years.  According to the company’s financial report, the company’s profitability has maintained a steady upward trend in recent years, and the company’s overall gross profit margin increased from 15 in 2012.5% to 23 in 2017.8%, net profit margin from 3 in 20124% to 7 in 2017.8%, mainly benefiting from the company’s product upgrades, internal management efficiency improvement and industry boom cycle.  Looking at the data by quarter, the company’s gross profit margin has increased significantly in recent quarters, especially since the end of 2016, the gross profit margin has continued to hit a new high. In 2018, the company’s Q1 gross profit margin reached 30.4%, compared with 22 in Q1 2017.0% year-on-year increase of 8.2 percentage points, it can be seen that the improvement of the industry’s prosperity has a very large impact on the company’s profitability.  Judging from the accounts receivable and inventory indicators, the company’s operating efficiency has significantly improved since 2015. The days of accounts receivables have fallen from 117 days in 2015 to 94 days in 2017, and the days of inventory turnover have fallen from 97 days to 67.day.The company’s cash flow has also improved very well since 2016. In 2017, the company’s operating cash flow net flow reached 4.100 million yuan, a year-on-year increase of 87%.  2. Super boom cycle of passive component industry represented by MLCCML2.1. 被动元件产业链  被动元器件,主要包括三大品类,电容、电阻和电感:(1)电容:主要作用是储存电路中的电量;(2)电阻:主要作用是调节电路中电流和电压的大小: (3) Inductance: The main function is to isolate, filter and stabilize the AC signal.  Passive component products are electronic basic components. Passive components are used in almost all areas of electronic products. The downstream applications are very wide. Consumer electronics, automotive electronics, LED lighting, wearable electronics, smart homes, etc. have very demanding passive components.Big.  Passive components look at capacitance, and capacitors look at MLCC: According to Paumanok Research data, the global passive component market size in 2017 was 25.4 billion US dollars, a year-on-year growth rate of 4.5%, industry demand has grown steadily.In the passive component industry, the size of the capacitor market is relatively high. According to IEK data, the global capacitor market size in 2017 was about 20 billion US dollars, an increase of 7.8%.In the capacitor industry, multilayer ceramic capacitors MLCC is an industry with a high market share and in line with technological development trends. According to Businesswire data, the global MLCC market size in 2018 was 50.$ 600 million.  According to Paumanok research data, the downstream demand of MLCC in 2017 is composed of 38% of mobile phones, 19% of PCs, 16% of automobiles, 15% of AV & IOT, and 11% of industrial and other.We believe that with the continuous upgrade of mobile phone hardware and the development of electric vehicles and automotive electronics, the future of mobile phones in the automotive sector will be the direction of increasing structural share.  Different downstream has different requirements for the performance parameters of passive component products, so different scenarios often match the products and specifications of different types of passive components.According to the differences in downstream needs and product characteristics, from the perspective of technological development, ceramic-based passive components (MLCC, chip resistors, ceramic inductors) products are currently important product components in the market, occupying major high-end markets, but also in the future.Important development trends.  The upstream of ceramic-based passive components are mainly ceramic-based materials and related electrode materials: the upstream of MLCC is mainly ceramic powder and electrode materials, the upstream of ceramic chip resistance is mainly ceramic substrate, resistor paste, ink, etc., and the upstream of ceramic chip inductor is mainly ferrite.And conductive paste.  From the perspective of the competition pattern, in the middle of the industrial chain, Japanese companies mainly control the high-end market and the main market share. The upstream materials are mainly high-end fine materials companies such as Japan and the United States. The domestic companies such as Guoci Materials and Chaozhou Sanhuan areUpstream ceramic powders and substrates have a certain market share.  2.2. Supply and demand improvement, MLCC boom cycle is expected to last longer than expected 2.2.1. 需求端:智能手机硬件升级、电动车、汽车电子需求旺盛  智能化、电子化需求驱动全球电容容量持续增加:全球科技产业一直围绕着智能化和电子化的大趋势在发展,根据IT架构,科技The development revolves around “data”. The “data” needs the support of basic components such as capacitors in the acquisition, storage, processing, transmission and output links. Therefore, we believe that the demand for capacitors is an important benefit link under the general trend of technological development.According to Paumanok research, the global demand for capacitor consumption in 2018 was close to 50 billion mF, which was 3-4 times that of the 1990s.  In recent years, the downstream demand for MLCC has continued to increase. The two areas with the fastest marginal growth are smartphones and automobiles. (1) The growth in demand for MLCCs from smartphones is mainly due to the continuous improvement of mobile phone hardware performance (data processing capabilities, cameras,Screens, etc.), the demand for MLCCs by a single mobile phone has increased significantly; (2) the growth in demand for MLCCs in the automotive industry is mainly driven by the increase in driving electronics such as ADAS and the significant increase in demand for mlcc by electric vehicles.  According to Kemet data, the demand for mlcc for iPhone X single phone exceeds 1,000, while the demand for mlcc for iPhone 6S is about 500; the demand for MLCC for ordinary fuel bicycles is about 2,500, while the electric vehicle represents Tesla’s threeThe demand for MLCCs for this model is about 10,000, which is about four times that of ordinary fuel vehicles.  The improvement of downstream demand drives the upgrade of upstream products. The future upgrades of MLCC products in the automotive and mobile phone fields are mainly: (1) Miniaturization: Under the general trend of thinner and lighter smartphones, the average volume of components is increasing, and mobile phone functions are upgraded.The demand for electric capacity is increasing during the process. At present, miniaturized MLCCs such as 0201 and 01005 are important requirements for high-end flagship mobile phones; (2) High voltage and high reliability: The automotive industry has a high demand for product safety, andMlcc reliability often has a great impact on the stability of body electronics; the average power in the automotive electronics field is much higher than consumer electronics such as mobile phones, so high-voltage products will also have greater demand.  The upgrading of core technical parameters such as miniaturization, high capacity and high voltage often encounters the gradual progress of technology. At present, the breakthroughs in the future are mainly the progress of ceramic materials and ceramic processing technology. The core technologies in the future include: (1) moreLayer technology, (2) printing technology, (3) capacitor layer thinning technology, and (4) bipolar material technology.  2.2.2. Supply side: high concentration, stable expansion of production, structural capacity tension due to structural capacity change. According to our statistics on the MLCC capacity of various manufacturers and future expansion, we believe that in the future, the global MLCC will still be mainly Murata / SEMCO / TDK / SunThe four inducements of the company control major global production capacities, especially the market for high-end products.Following the IEK and other data, the sum of the global MLCC four giants’ market share in 2016 exceeded 60%.  As the main source of future growth in downstream demand is the automotive and high-end consumer MLCC market, major global major development centers in the future are shifting to the automotive direction. Due to capacity constraints of plants and equipment, some companies have gradually phased out traditional business capacity.According to Jiwei.com and other news, Japan’s Murata announced that in Q2 2018, some products will gradually stop taking orders, and the product models are mainly in the size of 0402 to 1206.  Due to the major new production of Japanese and other major manufacturers into vehicles and other fields, leading to gradual accumulation and gradual withdrawal, coupled with strong downstream demand, these factors have led to insufficient supply of global MLCC industry capacity, and large-scale continuous price increases have occurred.Since the beginning of 2017 in Taiwan, South Korea’s MLCC has repeatedly issued product price increases, and the industry’s average unit price is expected to increase by 20-30%.  According to Japanese MoF export data, the ASP of products exported by the Japanese MLCC industry has significantly improved since Q2 2017, and by the end of 2017, the average ASP has increased by 40-50%.  Based on our preliminary expansion of future global industry supply and demand, we believe that the global tight supply of MLCCs is expected to continue until 2019: (1) Japanese companies’ main new operations are mainly concentrated in the automotive and high-end miniaturized product areas.) Japanese companies as a whole maintain a sound business strategy. Expanding production capacity and restructuring the exit of production capacity will be difficult to meet the increasing demand of the industry; (3) Due to the decrease in market share, the expansion of production by mainland and Taiwan companies will have a difficult impact on the global industry supply structure.  We track leading indicators of supply, demand and prices in the MLCC industry: orders, inventory and backlogs (undelivered orders).According to the latest quarterly financial report disclosed by Murata: (1) since Q1 2016, the number of orders in a single quarter has continued to exceed the single quarter revenue; (2) the company’s undelivered orders have continued to increase since Q1 2017, and the company has notDelivery orders exceeded 270 billion yen, an increase of more than 80% each year.According to Murata’s order breakdown, orders increased mainly for capacitor products.  2.3. We believe that the nature of the global MLCC price increase cycle is a reflection of the unbalanced supply-demand relationship in the industry caused by the continued adoption of conservative capacity strategies by Japanese companies in the context of continued growth in downstream industry demand and changes in production expansion cycles (3-4 quarters).Among the three major passive inductors, capacitor resistance inductors often have common downstream demand scenarios and similar competitive structures (that is, Japanese companies cover higher capacity allocations around the world). Therefore, we believe that resistance and inductance prompted the price increase cycle to start after MLCC.  According to IEK data, the major global ceramic chip resistor companies are Yageo, Rohm, KOA, Panasonic, Vishay, etc .; According to data from the International Electronic Business Information Network, the world’s major suppliers of ceramic inductors are Murata, TDK, Sunlord, Qilixin, etc.  According to the information from the International Electronic Business Information Network, since 2018, Yageo, Wangquan, Thick Voice, Lizhi Electronics, Guangye Technology, Huaxinke, Fenghua Hi-tech and other original resistor factories have issued price notifications for some products; International Electronic Business NetworkInformation information. On March 28, 2018, Taiwan Qili newly issued an inductance price adjustment announcement letter, stating that due to the continuous increase in raw material prices and labor costs, which led to the increase in the company’s operating costs, the unit price of the CLH1608T series will be adjusted.The increase range is 45%?68%.  We believe that the price increase of some products of resistance inductors that started in early 2018 reflects changes in the industry’s supply and demand pattern. In the future, the shift in supply and demand gaps will gradually reduce prices, and resistance inductor products are expected to start an industry price increase cycle.  3. Under the economic cycle, the performance elasticity of passive component companies is huge. Take MLCC as an example. This round of price increases that began in early 2017 has greatly affected the profitability of major suppliers in the industry. We choose MLCC products to account for a relatively high revenueSEMCO, Yageo, and Huaxinke as cases to analyze the impact of the industry boom on the company’s profitability.  SEMCO, the world’s second largest MLCC supplier, according to the company’s financial report data, the company’s 2017 MLCC product revenue was 210.7 billion won, with a revenue share of 30.8%.From 2015 to 2016, the company’s overall profit level is allowed, at a breakeven level. Benefiting from the MLCC price increase, the company achieved a net profit of 17.7 billion won in 2017, an increase of 7-8 times.  Taiwan Giant, the world’s fifth largest MLCC supplier, had revenues of 32.3 billion Taiwan dollars in 2017, of which MLCC product revenue was 16.6 billion Taiwan dollars, accounting for 51% of revenue.The company achieved a net profit of 6.7 billion Taiwan dollars in 2017, of which 27 in 2017Q4.800 million Taiwan dollars, an increase of 109% in ten years.The company’s gross profit margin and net profit margin have continued to increase since 2017. In Q4 2017, the company’s gross profit margin reached 43.7%, an increase of 16 units per year, with a net interest rate of 28.9%, an increase of 13 per year.4 averages.  Huashin of Taiwan, the sixth largest MLCC supplier in the world, the company’s revenue in 2017 was 21.6 billion Taiwan dollars, of which MLCC product revenue accounted for over 50%.The company achieved a gross profit margin of 29 in 2017Q4.0%, an increase of 5 a year.3 averages.  4. Investment proposal According to the company’s existing product structure, capacity composition and capacity expansion plan, we expect the company’s 2018-2020 revenue to be 45.1/57.2/65.$ 800 million, of which MLCC and chip resistor revenue were 15 respectively.0/21.0/25.0ppm and 9.0/12.0/13.0 billion yuan.Based on the judgment of the industry boom and the company’s historical profitability, we assume that the company’s gross profit margin for 2018-2020 is 32.50% / 34.00% / 33.00%, we estimate that the company’s net profit attributable to mothers for 2018-2020 will be 7 respectively.09/9.55/10.7.7 billion yuan.  We use the passive component industry and comparable listed companies to estimate the value of the company, and obtained the company’s 26 times PE in 2018, which is attributed to the company’s 6-month target price of 20.5 yuan, first coverage, buy rating.  Securities research report: “Fenghua Hi-Tech: the beneficiaries of high-performance elasticity under the passive boom period” Published: May 2, 2018 Report issuing agency: Tianfeng Securities Co., Ltd. Analyst: Pan Yan SAC practisingCertificate number: S1110517070005 Zhang Jian SAC practice certificate number: S1110518010002 Chen Junjie SAC practice certificate number: S1110517070009

Yuntianhua (600096): The decline in the prices of major products dragged down the performance of the asset-liability ratio for four consecutive quarters

Yuntianhua (600096): The decline in the prices of major products dragged down the performance of the asset-liability ratio for four consecutive quarters

Investment Highlights: The company released the third quarter report of 2019, and its performance was in line with expectations.

19 1-3Q19 The company achieved operating income of 410.

8.5 billion (+11 year-on-year.

89%), net profit attributable to mother is 1.

3.4 billion (+62 y / y.

12%), of which non-recurring profit and loss is 8148.

09 million yuan, the net profit after returning to the mother is -5106.

460,000 yuan, a year of loss of 33.4 million yuan, performance in line with expectations.

Among them, 3Q19 single quarter realized operating income of 126.

8.3 billion (compared to -6.

42%, season 13.

22%), net profit attributable to mother is 0.

08 million yuan (yoy-54.

13%, QoQ-45.

43%), single-quarter sales expenses, management expenses (including R & D expenses), and financial expenses fall every 7th.

86%, 14.

62%, 23.

23%, up and down 11 respectively.

81%, 2.

79%, -9.


The decrease in zero net profit in the third quarter of 19 was due to the main products phosphate fertilizer, compound fertilizer, urea and paraformaldehyde substitutes.

The company also announced a cash investment of 200 million US dollars to establish Yunnan Phosphor Industry Technology Co., Ltd. to carry out basic yellow phosphorus upgrades and research and development and industrialization of fine phosphorus chemical products.

  Weak demand has led to the company’s category of fertilizer products. The price of polyacetal has continued to decline, the spread has narrowed, and profits have fallen.

The average sales price of 1-3Q19 company’s diammonium phosphate, monoammonium phosphate, and urea (excluding tax, the same below) decreased each year.

29%, 6.

03%, 1.

34%, in which the price of 3Q19 accelerated decline, every 8 drops.

2%, 10.

4%, 10.

5%, the spread narrowed, and the profitability of the fertilizer business was broken down.

The price of phosphate rock in Yunnan is the highest stable. The output and sales volume of the company’s phosphate rock continued to increase by 1-3Q19.

1%, 31.

7%, good profitability.

In 1-3Q19, some of the producers that had stopped production gradually resumed production, and production capacity gradually picked up. However, sluggish downstream demand caused prices to drop. In 1-3Q19, the company’s average sales price of polyformaldehyde decreased twice.

7%, 10.


  Continue to advance debt reduction, actively optimize asset structure, and reduce the asset-liability ratio for four consecutive quarters.In 1H19 Phosphate Group introduced CCB investment and Bank of Communications investment to complete the 10 trillion market-oriented debt-to-equity swap. In 3Q19, the asset-liability ratio continued to decrease by 0 compared with the second quarter.

3 up to 88.

54%, financial expenses fell significantly in a single quarter, 19Q3 company’s financial expenses was 5.

8.8 billion, a year-on-year decrease of 23.

23%, 9.


Due to the decrease in controllable expenses, the management expenses (including R & D expenses) in the third quarter of 19 decreased by 14.


In the future, the company will continue to optimize and control the controllable expenses. At the same time, it will actively seek investors, accelerate cooperation with financial institutions, promote equity financing and share-equity debt-to-equity conversion of subsidiaries, increase the company’s equity capital through capital increase and share expansion, improve the capital structure, and reduceAssets and liabilities.

  Invested in the establishment of Yunnan Phosphorus Technology Co., Ltd. 苏州夜网论坛 to promote the integration and development of the yellow phosphorus and fine phosphorus chemical industries, and to enhance the company’s continuous competition in fine phosphorus chemical business.

The “three phosphorus remediation” takes the governance of the yellow phosphorus industry as the first shot. The domestic yellow phosphorus operating rate has plummeted. The price center of yellow phosphorus has moved up a step for a long time. The company has a large amount of phosphorus resources and technology. It currently has three types of yellow phosphorus production capacity.In the future, the establishment of fine phosphorus chemical product chains such as yellow phosphorus, polyphosphoric acid, and phosphate will be strengthened to enhance the competitiveness of phosphorus chemicals.

  Earnings forecast and investment rating: “Three Phosphorus Remediation” accelerates the industry’s supply-side reform. It has long been positive for Phosphorus Chemicals, transforming the company’s gradual improvement of its asset-liability structure, and its performance has gradually improved. We maintain the company’s 2019-2021 net profit return to motherhood as 3.

05, 5.

24, 6.

74 trillion, EPS is 0.

21, 0.

37, 0.

47 yuan, the current market value of the corresponding PE is 27X, 15X, 12X.

Selected as a “Double Hundred Enterprises” to welcome the historical performance of state-owned enterprise reform, fair incentives to highlight the reform decision and confidence in future operations. The cost advantage of integrated mineral fertilizers is obvious, and the level of overweight is maintained.

  Risk Warning: 1.

The prices of phosphate ore, phosphate fertilizer, and polyformaldehyde continue to fall; 2.

The progress of debt reduction is gradually expected, and the asset-liability ratio continues to rise; 3.

Three expenses continue to grow

Jinyu Group (601992) 2018 Annual Report Comments: Beijing-Tianjin-Hebei Cement’s Strong Momentum Real Estate Sector Expected to Bottom

Jinyu Group (601992) 2018 Annual Report Comments: Beijing-Tianjin-Hebei Cement’s Strong Momentum Real Estate Sector Expected to Bottom
This report reads: The demand for Beijing-Tianjin-Hebei cement starts to accelerate in Q4 of 2018. The construction of Xiong’an New District may further open up demand elasticity, and the real 杭州夜网 estate sector industry environment may have bottomed. The carry-over amount and sales amount in 2019 are expected to rebound. Investment Highlights: Maintain the “overweight” rating.The company’s revenue in 2018 was 831.1.7 billion increased by 30.53%, net profit attributable to mother 32.6 billion increased by 14.94%, in line with expectations, taking into account the uncertainty of asset reduction due to asset consolidation, slightly reduced EPS to 0 in 2019-2020.42, 0.46 yuan (-0.08, -0.12), the corresponding PE in 2019 is now 10.88 times, maintaining target price of 5.83 yuan to maintain the “overweight” level. Cement has improved significantly, and demand has accelerated.Comprehensive sales of cement clinker in 20181.07 billion tons increased by 4.3%, benefiting from demand and the effect of gold regeneration, the profit growth of cement increased, and the gross profit margin of the sector gradually increased by 5.57 points.The demand for Beijing-Tianjin-Hebei cement increased significantly in the fourth quarter of 2018, and the sales growth rate of Q4 in Jidong increased significantly by about 11%. As Xiong’an entered the realization stage, the demand elasticity of Beijing-Tianjin-Hebei region continued to lead the country.The leading benefit trend is obvious. The real estate sector is affected by the environment and structure, or has already been constructed.The company’s real estate carry-over area in 2018 was approximately 100.90,000 square meters, an increase of 6.41%, the sales area is 111.410,000 square meters, an average of 19 years.1%; is mainly affected by the structural protection of the housing sector and the price limit policy. Since the beginning of 2019, real estate sales and companies in Huanjing and other regions have intentions to build a bottom, and the industry environment may have started building bottom. In 2019, the companyThe carry-over amount and relative expectations have picked up earlier. One-off impairment interferes with expected regression.In 2018, under the background of Jinye Jidong Cement’s deep integration and absorption and integration with Tianjin Building Materials, the company’s total assets were impaired after business carding and unification of financial regulations.2.8 billion, credit impairment3.7.8 billion, totaling 12.USD 0.6 billion, which deviates from the previous year’s average (average 400-500 million euros in the past three years).The impairment in 2018 showed a one-time characteristic, and it is expected to ease to the normal range starting in 2019. Risk Warning: Raw material cost risk, domestic monetary policy real estate policy risk

CICC’s perfect hedging transaction management facilitates long-term capital entry

CICC’s perfect hedging transaction management facilitates long-term capital entry

Securities Daily Zhu Baochen On March 22, 2019, China Financial Futures Exchange issued the “Notice on Management Requirements for Financial Futures Hedging Transactions”.

The Notice will be officially implemented from March 25, 2019.

  Zuo Haomiao, Intelligent Investment Department of China Life Asset Management Co., Ltd. said that in addition to hedging existing spot asset risks, hedging transactions also have various risk management requirements such as investment substitution and duration adjustment.

The new regulations introduced by CICC further clarify the management requirements of hedging customers by buying financial futures instead of cash and other strategies, taking full account of market demand, which can promote the institutionalization and scale of buying hedging customers, 北京夜网 and increase financial futures.Market long position strength.

  In the view of Jiang Xiaoyang, the general manager of Huatai Securities Securities Investment Department, after adjustment, the stock index futures are sold and hedged in the current matching mode. All stock index futures correspond to all types of stock index futures and all types of index stocks and stock ETFs and LOFs.Futures considers a whole and no longer inherits the original single variety.

This will undoubtedly help market participants to take full advantage of the high correlation between the various indexes and design more diversified investment strategies.

  ”This is conducive to the long-term capital entry into the market, and promotes the healthy and stable development of the market, which is more favorable at the moment when the science and technology board is launched.

Jiang Xiaoyang said that at the same time many market participation is a diversified strategy. Positions with long positions can also provide a space for participation in hedging strategies to a certain extent. This will create more flexibility for participation, thereby promoting market activity and enhancing the futures market.The price discovery function can also play an active role in expanding the institutional investor team and stabilizing the market structure.

  CITIC Prudential’s Quantitative Investment Director advocates Yun Tao, saying that the number of long-term financial futures is increasing, market participation risk management strategies are constantly being enriched, and the product characteristics and trading strategies of government bond futures are swapped with stock index futures. Management methods and requirements for government bond futures are alsoShould be different from stock index futures.

CICC was aware of the development of market laws in a timely manner, and the principle of hedging program management, which is more prominent in the new regulations, increased the requirements for the value-at-risk matching of treasury bonds and reduced the key points of China Bond interest rate risk management.

This helps market participants to more fully use financial futures as a management tool in hedging asset risks.

  Real Fund smartbeta and Quantitative Chief Investment Officer Yang Yu said that this rule adjustment expands the range of existing matching index funds and allows more fund products to use stock index futures as a risk management tool.

The original period is now matched with more than 20 index funds including the Shanghai Stock Exchange 50ETF, the Shanghai and Shenzhen 300ETF and the CSI 500ETF. After adjustment, it can cover all stock ETFs and LOFs with a total of more than 200 index funds.The fund’s market institutions use stock index futures to manage risk.

This is not only a favorable move to comply with market calls and trading practices, but also an effective implementation to promote the gradual development of the financial futures market.

Wingtech (600745) Company Review: Rapid Business Development and Anshiying 5G Best Possible

Wingtech (600745) Company Review: Rapid Business Development and Anshiying 5G Best Possible
The company released its 2019 Interim Report, which achieved 114 revenues during the period.34 ppm, an increase of 110 in ten years.71%; Realize net profit attributable to shareholders of listed companies.96 ppm, an increase of 210 in ten years.65%; notice that the net profit attributable to shareholders of listed companies from January to September 2019 is 4.3 ppm-5.Between 1 trillion. The business operation develops rapidly, and the second half results are expected to accelerate the release.Benefiting from the optimization of the customer structure of the communications business in 2018, the replacement volume of first-line brand customers increased, the number of projects and procurement on behalf of customers increased significantly, and H1 was close to 110.71% growth.Comprehensive gross profit margin 8.32% basically reflects the communication business, compared with 7 last year.The level of 56% has improved significantly, and high-quality orders and ramp-up of production capacity continue to have a positive impact on ODM business. The sharp contraction in the real estate sector led to a reduction in selling expenses7.41%; the increase in the number of international first-tier brand projects and the increase in the amount of restructuring has led to an increase in management costs19.54%, also led to an increase in research and development expenses by 27.96%. The restructuring and acquisition of Anshi resulted in a significant increase in financial costs119.39%, reaching 2.08 thousand yuan.If the expenses are added back, the net profit of the main business is expected to be 3.500 million points or more.The company previews 1 at the same time?After deducting various interest and expenses in September, the net profit attributable to shareholders of the listed company was 4.30 ppm-5.Between 1 trillion. ODM ushers in major industry opportunities, and the outbreak of 5G smart terminals promotes long-term high-speed growth.With the increase of H1 projects and the significant increase in the proportion of self-production, the purchase of equipment for customers increased, and H1 prepayments increased by 187.98%, R & D expenses increased by 27.96%, other receivables increased by 92.67%, indicating that H2 is still the rapid growth of the company’s business scale.In the end, the competition of terminal brand manufacturers has intensified, promoting the optimization of the ODM competition pattern, and the expansion of the right-hand manufacturers and the bargaining power. On the other hand, the 5G replacement cycle has expanded, and the company has taken the lead in researching and deploying 5G.And other fields; three are currently in production in Wuxi, India, and Indonesia, and the production capacity will continue to open in the second half of the year and next year, to dock more orders at home and abroad.We expect that in the next 3 years, Wingtech’s ODM main business scale and performance will maintain rapid growth. The reorganization and acquisition plan was successfully passed, and the completion of the transaction is imminent.The company successfully obtained the approval of the Securities and Futures Commission on the acquisition of Anshi’s plan in June, and the delivery is in full swing. We expect that Anshi’s Q4 will be consolidated.H1 company generated net cash inflows from operating activities11.US $ 6.6 billion, with an estimated maximum of US $ 2.5 to 3 billion, which can completely cover the interest and principal repayments resulting from the acquisition in the past two years, and the financial pressure is very low.In the past two years, under the leadership of the Chinese consortium, Anshi’s capacity utilization rate was fully loaded, new power device products were continuously introduced, and cooperation with domestic customers was further strengthened.In the future, there will be strong demand in the automotive electronics market, and there is a huge space for domestic substitution. We expect that Ace Semiconductor will maintain a rapid growth of about 20% in the next three years. Biplane warfare will be the best possibility in the era of 5G intelligent things.5G will be the dividing line between the People’s Connected and the Internet of Things era. From the scale to the scene, it will usher in the explosive growth of the Internet of Things terminal.According to the multi-party Internet of Things forecast summarized by China Mobile, by 2023, the number of global people’s federations is expected to be 北京桑拿洗浴保健 11.6 billion, and the number of Internet of Things is 19.8 billion; China’s number of people’s federations is 2.9 billion, and the number of things connected is 4.4 billion.The era of 5G intelligent IoT will help the company to give full play to the advantages of terminal ODM, quickly promote the implementation of IoT solutions, and open up production capacity; and the explosion in the scale of terminals will also increase the demand for AES standard devices several times.Will help the company usher in the expected rapid growth in the 5G era. Investment suggestion: According to the current profit forecast of the mobile phone business, the profit is expected to be 7 in 2019-2021.71, 11.55 and 16.9.7 billion.The delivery of Ace is about to be completed. It is estimated that Ace Semiconductor will achieve net profit of 17 trillion and 19 trillion in 2019 and 2020.Assuming a complete 无锡桑拿网 consolidation in Q4 of 2019, complete matching financing during the year, and repayment of the acquisition debt as scheduled, it is expected that the combined profit for 2018-2020 will be 9.19, 11.11, 26.7.5 billion US dollars, of which the potential for profit improvement in 2020 is mainly the listed company’s merger and acquisition of nearly 80% stake in NEX Semiconductor.Based on the current total, after the completion of the settlement and matching financing, the corresponding market value should be 534 trillion, and the corresponding PE in 2020 is only 19.96x, the current price is significantly underestimated. We maintain a BUY rating and recommend a long-term strategic allocation. Risk alert events: transaction termination risk, financing risk, approval risk, risk of higher nominal asset appreciation, integration risk, less than expected risk on 5G smartphones and IoT terminals, risk of semiconductor demand risk

Jianlang Hardware (002791): Platform, Scale and Efficiency

Jianlang Hardware (002791): Platform, Scale and Efficiency

Small Hardware World: There are many types of ingenious works in home improvement and building materials: 北京桑拿洗浴保健 market space transmission and easy extension of categories.

There are many types of construction hardware, including door and window hardware, door control hardware, curtain wall hardware, etc., and construction hardware is easy to extend to home hardware, tool hardware, and so on.

The domestic construction hardware market space is about 80 billion yuan. The common door and window hardware, door control hardware, and curtain wall hardware market space are about 35 billion, 30 billion, and 5 billion yuan, plus the home and bathroom hardware market space exceeds 300 billion yuan.

Diversified demand: the characteristics of the engineering market, and the customer base is relatively scattered.

The downstream customers of construction hardware are mainly construction units such as door and window enterprises, curtain wall industry and building decoration companies.

The door, window and curtain wall industry is characterized by a relatively scattered professional demand in the hardware market: first, the main body of the project (accounting for over 90%), and the demand is specialized; second, there are a large number of enterprises with a relatively scattered layout.Enterprises, taking Jianlang Hardware as an example, its door and window hardware market has 8000 customers in one, and the concentration is relatively scattered, CR5 is about 5%.

Quality is paramount: belongs to fine manufacturing, with a high proportion of customization.

Hardware belongs to the refined manufacturing industry, with a large number of patents and a high proportion of customization.

Take Jianlang Hardware as an example, about 1/3 of the order quantity is a customized order.

Jianlang Hardware: The platform solves operational efficiency and scale brings production efficiency. The company’s main doors and windows and curtain wall hardware and metal structure accessories and other related products, the company’s revenue in 2018 is about 38.

500 million, of which construction hardware and home hardware revenue were about 34.

9, 3.

600 million.

In the past five years, the company’s compound revenue growth rate is about 17%, and the attributable net profit compound growth rate is about -6%. The gross profit margin is relatively stable (close to 40%), but the net profit rate is decreasing, mainly due to the company’s construction of a systematic platform.Human resources.

The company’s competitiveness lies in fine manufacturing and business models.

The first is continuous R & D investment and technological innovation. The company supplements the training of technical R & D personnel and establishes a special incentive system. The proportion of R & D investment has been at a relatively high level (about 4%) for a long time, replacing the internal technological advantages of the company;Relying on information technology (with Oracle system as the core), the company has established a multi-category product, sales staff, and warehousing and logistics platform. The business model is to solve production and operation efficiency, that is, to achieve high efficiency of scattered products and scattered needs.Butt to achieve the optimal allocation of processing elements.

Once the scale effect is formed, it is difficult for peers to follow suit.

Scale advantages will be reflected in selling expenses and product categories.

The company’s current feature is the mismatch between customer coverage and revenue volume — the downstream customer number coverage is high, but the construction hardware market share is only 4%, so the scale effect has not yet been reflected.

We judge: 1) The scale advantage is expected to be realized. In terms of sales expenses, the company’s sales team accounts for 40% of the total number of people, and it has covered the second and third tier markets. The increase in the future will change, so the sales rate is expected to decline; 2) The scale advantageIt is expected to be reflected in the scale of products. The overseas leader Wurth and H?fele generated an average income of about 1.4 million yuan per capita, and H?fele’s per capita income in mature local markets reached 6.8 million yuan, while the company’s per capita income was less than 400,000 yuan.Category extension and scale expansion, and its production efficiency increases space length.

The company’s EPS is expected to be 0 in 2019-2021.



4 yuan, corresponding to PE20 / 15/11 times, buy level.

Risk Warning: 1.

Real estate investment outstanding low expectations; 2.

Low expectations for new product development.

Ambassador Cui Tiankai accepts open letter from American Jewish organizations

Ambassador Cui Tiankai accepts open letter from American Jewish organizations
Cui Tiankai Meets with Chairman of the United States Jewish Public Affairs Commission David Bernstein (Photo by Zhang Mengxu), People’s Daily Online, Washington, February 27 (Reporter Zhang Mengxu) On February 26, Ambassador Cui Tiankai should meet with the Chairman of the JCPAKey leaders of American Jewish organizations such as David Bernstein.Bo and his party forwarded an open letter jointly issued by 87 American Jewish organizations including the JCPA, the Jewish Society Association (JCRC), the American Jewish Council (AJC), and other solidarity in support of the Chinese people and Chinese Americans affected by the new coronavirus pneumonia epidemic.Anti-Chinese sentiment rises to express concern, opposes racial discrimination and insults to China.Ambassador Cui first thanked the JCPA and other American Jewish organizations for their firm support and kind condolences to the Chinese people in fighting the epidemic, and pointed out that the Chinese and 苏州夜网论坛 Jewish peoples have supported each other in history and have experienced hardships and hardships, but have never yielded or been crushed.No matter how difficult it is to rejuvenate the nation, the Chinese nation can grow up and develop better every time.The Jews have made outstanding contributions to the development of world science, technology, and human well-being.The Chinese people appreciate and respect the hard work and wisdom of the Jews, and welcome more Jewish organizations to visit China after the epidemic has ended, and further increase mutual understanding between the two nations.Ambassador Cui also introduced the prevention and control of the new coronary pneumonia epidemic. He said that under the strong leadership of President Xi Jinping, China mobilized nationwide and went all out to carry out epidemic prevention and 青岛夜网 control.At present, the developing countries are developing in a positive direction, but China will never relax, and will redouble its efforts to overcome the epidemic, and actively resume production and resume work to restore the normal economic and social structure at an early date.At the same time, personnel exchanges between China and the United States have been gradually interrupted by the impact of the epidemic. I hope that the relationship will be improved. The cultural exchanges and cooperation between the two sides can return to normal as soon as possible. Because of people-to-people friendship, exchanges and cooperation are the foundation of Sino-US relations.Ambassador Cui said that the epidemic once again shows that the common challenges facing human society are increasing, and it also highlights the need for countries around the world to jointly build a community of shared future for mankind and cope with the challenges.In the face of the epidemic, we need to unite as one, caring for each other, and working together, and we can undo any form of discrimination.Bernstein said that China is currently suffering from the extreme new crown pneumonia epidemic.This open letter is meant to express our solidarity with the Chinese people and Chinese Americans.As far as I remember, this is the first joint writing of American Jewish orthodox, conservative, reformed, and reconstructed denominations, which fully shows the support of the Jewish people and Jews in the United States to the Chinese people and Chinese Americans.We will always remember the tremendous efforts China made to protect the Jewish nation during World War II.The values of the two nations are similar, they understand each other and help each other.Now, at a time when the Chinese people are having a hard time, some racial discrimination in American society is sad.Each of us has a responsibility to “welcome outsiders”. In the face of an epidemic, we must resolutely oppose racial discrimination and xenophobia.Any discrimination against this race is a challenge to all humankind and cannot be accepted.As long as we support and help each other, we will certainly be able to weather the crisis.Ambassador Cui also accepted media interviews, saying that the epidemic once again proved that countries, especially China and the United States, should cooperate in such fields as global public health.We must completely abandon racial discrimination and ideological prejudice, and safeguard the common interests of all mankind.This also proves that China’s claim to establish a community of shared future for mankind is very correct and meets the needs of the times.We should not be led in the wrong direction by the bad words of some people in the United States. We should see more of the American people as being kind and willing to develop friendly relations with the Chinese people and cooperate to meet global challenges.And real opinion.We thank the American people and all walks of life for their understanding, sympathy, and support for China in the fight against the epidemic.The common aspirations of the two peoples are friendship, cooperation, and win-win. People who advocate “decoupling” and “new cold war” will violate the people’s intentions and will inevitably fail.[1][2][3]

Tang Renshen (002567): The first quarter of 2019 results meet expectations and continue to maintain rapid growth

Tang Renshen (002567): The first quarter of 2019 results meet expectations and continue to maintain rapid growth

Event: According to the company announcement, the company achieved net profit attributable to shareholders of listed companies in the first quarter of 2019.


760,000 yuan, a year of decline of 90% -60%.

1. The pig price in 2019Q1 increased and the cost of epidemic prevention was increased, and the company’s first quarter performance declined.

According to the company’s announcement, the company will sell live pigs from January to February 2019.

20,000 heads.

We estimate that the company will produce a total of 250,000 to 300,000 pigs per slaughter in 2019Q1, with an average head price of 150-200 yuan per head. The company’s performance in the pig sector will reach 35-50 million, and the performance of the feed + meat sector will contribute 50-60 million.

With the improvement of the company’s epidemic prevention level, the breeding tends to be stable, and the company’s breeding cost will tend to decrease.

With the rise of pig prices, the company’s performance is expected to continue to rise!

2. African swine fever has severely depleted production capacity, and the pig price cycle has begun. It is expected to accelerate growth again in April!

Affected by the swine fever in Africa, the productivity of the breeding sows nationwide has been maximized and eliminated. According to data from the Ministry of Agriculture and Rural Affairs, the breeding sow population in February 2019 decreased by 5% from the previous month, and by 19.


We expect the pig price increase in this cycle will continue for 2-3 years, and the high point will exceed 25 yuan / kg, and the current cycle is still in the initial stage; it is expected to enter 4 months, the industry supply will gradually tighten, and pig prices are expected to accelerate growth.

3. The company’s listing has grown rapidly, and it is estimated that it is still low.

1) We believe that 2019-2021 will be a period of high growth for the company.

As of September 30, 2018, the company’s productive biological assets1.

3.6 billion, an increase of 16% and a decrease of 3.

28%; construction in progress 3.

2.3 billion, an increase of 51% with a ring increase of 0.


According to the 2018 Express Report, the company’s asset-liability ratio at the end of 2018 continued to decline from 2018Q3 to 37.

83%, with good financing potential.

We estimate that without considering outsourced pig farms, the scale of the company’s slaughter will be 1.2 million and 2.2 million in 2019-2020, and we predict that it will be 700,000 in 2018.

Moreover, judging from the current development of swine fever in Africa, the epidemic situation in the southern region was interrupted by natural factors such as geography, and the outbreak was relatively light.

From the perspective of the company’s production capacity distribution in 2019, we predict that the company’s production capacity will be mainly distributed in the southern region. It is predicted that Hunan will account for more than half of the volume, Guangdong 8%, Henan 8%, Hebei 20%, and Hubei 8%.The number of listings is relatively limited by the impact of the epidemic.

2) As of March 31, from the forecast point of view, excluding the company’s feed market value of 3 billion, the company’s head-to-market average market value of 3637 yuan corresponding to 2020, far lower than Wen’s shares 5918 yuan, Makihara shares 8251, the company’s estimateStill low!

4. Investment suggestion: We expect net profit attributable to mothers in 2018-20201.



1 ppm, corresponding to EPS 0 in 2018-2020.



04 yuan / share, the net profit attributable to the mother increases by -56 per year.

2%, 348.

6%, 180.

6%, giving an estimate of 10 times the 2020上海夜网论坛 performance, with a target market value of 17.1 billion and a target price of 20.

4 yuan / share, continue to maintain a BUY rating.

Risk warning: pig price fluctuations; epidemic diseases; policy changes; production volume is less than expected; epidemic conditions lead to rising costs

Hangcha Group (603298) Quarterly Review: Industry Leading Competitiveness in a Period of Adjustment

Hangcha Group (603298) Quarterly Review: Industry Leading Competitiveness in a Period of Adjustment

The performance of the third quarter report increased by 11%, the company’s competitive advantage is prominent, and the growth against the trend is steady. The company’s third quarter report: 2019Q1-3 realized revenue 67.

5 billion +4 per year.

47%, net profit attributable to mother 4.

7.8 billion / year +11.

20%, Q3 achieved revenue of 21 in a single quarter.

3.6 billion 武汉夜网论坛 +0 per year.

77%, net profit attributable to mother 1.

3 billion / year +13.

33%, performance is in line with our expectations.

We believe that in the short term, the company’s multiple advantages such as intelligent manufacturing, research and development, and market enhancement will be realized in a weak environment of the industry, and it will achieve steady growth; in the medium and long term, it can replace the competition barriers and gradually increase the company’s intelligence, integration, and internationalization.With the progress of the process, the development of domestic and foreign markets is expected to continue to increase and gradually establish a global competitive advantage.

  We expect company 19?
The 21-year EPS is 0.

97, 1.

07, 1.

18 yuan, maintaining the “overweight” level.

  Gross 杭州夜网 profit margin, net profit margin rose steadily, and cash flow quality continued to improve. Benefiting from factors such as product structure optimization, smart manufacturing level improvement, and falling raw material price swaps, the company’s gross profit margin in Q1 2019 was 20.

90% / Year + 0.

45 points, affected by the rapid growth of R & D and sales expenses, the expense ratio during the period was 12.

55% / year on year +0.

51pct; investment income, government subsidies have increased compared to the same period last year; the company’s net profit attributable to the parent in Q1 2019 is 7.

08% / YoY +0.

43pct, net cash flow from operating activities reached 8.

28 ppm / yoy + 111%, we believe that the continuous improvement of cash flow under the pressure of industry sales reflects the additional competitive advantage of the company’s replacement.

The company’s single quarter gross profit margin was 20 in 19Q3.

82% / year-on-year +0.

57pct, period expense rate 13.

99% / year + 0.

97 points, net profit attributable to mother 6.

07% / year on year +0.

67pct, the above Q3 indicators are similar to the overall change trend of Q1-3.

  Since the beginning of 2019Q2, the forklift industry has entered an adjustment period. The company’s strength is strong, and its operations are steadily affected by domestic and foreign economic pressure and international trade frictions. From January to August 2019, China’s forklift industry sales were 40.

10,000 units / yoy-1.

9%, including electric pedestrian storage, electric ride-on storage, electric counterweight, and internal combustion counterweight sales of 13.

90,000 units / year on year +3.

4%, 0.

60,000 units / yoy-22.

6%, 4.
100,000 units / yoy-2.

4%, 21.
60,000 units / yoy-4.


The company continues to maintain the traditional advantages of counterbalanced forklifts, and at the same time, the sales of storage trucks have made rapid progress. The total sales of the company in 2019H1 continue to increase11.

4%, significantly higher than the industry -0 in the same period.

3% growth rate; 2019 Q1, Q2, Q3 single-quarter revenue growth rate was 19.

5%, -3.

6%, 0

8%, strong business strength, stability is sufficient for the industry’s overall level.

  Intelligent manufacturing, research and development, and the strengthening of multiple market advantages are necessary foundations for increasing the city’s market share. In 2019, the company’s fund-raising projects were closed, the production capacity was fully released, and the level of intelligent manufacturing was significantly improved.basis.
R & D strength has further revealed, and more than 100 models of 18 series products were launched to the market in the first half of the year.

The construction of the company’s internal regional marketing service center continued to advance, and it has gradually cultivated new agents in the United States, South Africa, Europe and other places.

  Gradually establish a leading Chinese domestic forklift leader with global competitiveness, and maintain an “overweight” rating. Considering the pressure on the company due to the decrease in the overall demand of the forklift industry, we lowered it by 19?
Forklift business income in 21 years, expected 19?
The company’s net profit for the 21 years was 6.

0, 6.

6, 7.

3 (previous value was 6.

2, 6.

8, 7.

5) 100 million yuan, corresponding to 12, 11, 10 times PE.

In 19 years, the average PE of construction machinery was 11 times (consistently expected by wind). Considering that the growth of forklifts is higher than other construction machinery categories such as excavators, and the company’s industry competitive advantage is gradually emerging, we believe that the company should have a certain estimateValue premium, given the 19-year target PE 13?
15 times, corresponding to the extended interval of 12.


55 yuan.

  Risk reminders: downside risks to macroeconomic and manufacturing investment; raw material price risks; slower-than-expected risks of electrification and internationalization; and risks of less-than-expected progress in industrial M & A integration and benefits.

Shanghai Construction Engineering (600170) 2019 Third Quarterly Report Review: Regional High Prosperity Repurchase Shows Confidence

Shanghai Construction Engineering (600170) 2019 Third Quarterly Report Review: Regional High Prosperity Repurchase Shows Confidence

Event: The company released the 2019 third quarter report.

During the reporting period, the company achieved revenue of 1,523 trillion, an increase of 32%; net profit attributable to mothers was 27.

200 million, an increase of 50%; of which, net profit after deduction is 20.

600 million yuan, an increase of 21%.

In the third quarter alone, it achieved revenues of 48.8 billion yuan, an increase of 32%; net profit attributable to mothers7.

600 million, an increase of 47%.

The company announced the repurchase plan. Within 6 months from the date of the adoption of the plan at the scale of the shareholders’ general meeting, the repurchase scale with its own funds did not exceed 50 million yuan, not more than 100 million yuan, and the repurchase price did not exceed 4.

2 yuan / share.

The repurchased shares are intended to be used for employee stock ownership plans.

Opinion: Both revenue and orders have maintained rapid growth.

Since this year, revenue has maintained a growth of more than 30% for a year, the best level since 2010, indicating that regional investment prospects are high and the company’s business development is favorable.

In the first three quarters, the company’s orders for the new decade were 2,445 trillion, an increase of 18%.

Among them, construction construction business was 195.8 billion yuan, an increase of 18%; design consulting, construction-related industrial business, infrastructure investment, and other businesses increased by 53%, 34%, 3%, 73%, and real estate pre-sale contracts were 2.5 billion yuan.Same reduction of 71%.

The company’s new starting point for each business has grown rapidly. Although real estate pre-sale has been affected by changes in macro policies and operating strategies, it will not have a significant impact on the company’s profits within 1-2 years.

In the third and third quarter alone, the bottom of the company’s comprehensive gross profit margin rebounded, and the decision-making judgments were verified (reviewed in the semi-annual report 青岛夜网 for 19 years).

In the third quarter alone, the company’s comprehensive gross profit margin was 10.

1%, an increase of 1 from the previous quarter.

1pcts, but still low by 3 per year.


The preliminary gross profit margin decreased, and the judgment was mainly affected by the business structure (the proportion of real estate business decreased).

High revenue growth, significant repurchase confidence, and maintain a “buy” rating: Shanghai Construction Engineering is a leader in the construction of the Yangtze River Delta region, which will significantly benefit from the strategic integration of the Yangtze River Delta and the high prosperity of regional infrastructure investment.

The company has abundant orders in hand and strong performance guarantee.

The company’s main business construction income, strong 杭州夜网论坛 order growth, and the influence of changes in gross profit margins are gradually being digested. We maintain the company’s 19-21 year return to net profit forecast34.



400 million, the current price corresponding to 19-21 years PE is 9x / 7x / 7x, which has the largest return compared to similar local state-owned enterprises.

Maintain “Buy” rating.

Risk reminder: rapid segmentation of real estate business, regional investment is less than expected