Dongzhu Ecology (603359) 2018 Annual Report Comments: Low Funds Full Orders Accelerate Expansion Expectation Layout Big Ecology Expected Multi-Polar Growth

Dongzhu Ecology (603359) 2018 Annual Report Comments: Low Funds Full Orders Accelerate Expansion Expectation Layout Big Ecology Expected Multi-Polar Growth

Investment highlights: Event: The company released its 2018 annual report and actually realized revenue of 15.

9.4 billion, an increase of 30.

17%, net profit attributable to mothers3.

2.6 billion, an increase of 34.

18%, achieving a deduction of 3.

2 billion, an increase of 33.

57%; fourth-quarter results improved month-on-month, with partial acceleration.

Q4 revenue / attribution growth rate was 12.

35% / 24.

08%, an increase of 10 from the previous 佛山桑拿网 month.

6pp / 40.


Up to 30% (+5.

2pp) / 34% (+3.

1pp), the growth rate has increased every year, of which the wetland income is 9.

2 billion (+ 24% year-on-year), accounting for 58% (-3pp), and municipal revenue 6.

300 million (+ 92% year-on-year), accounting for 40% (+ 13%); funds are abundant and non-interest-bearing debt, and the debt rate improvement is still at a certain level.

The rates have dropped significantly and profitability has steadily improved.

Cash flow from operating investments has faded.

The company has funds in hand at the end of the period12.

The largest 2.7 billion is abundant, without interest-bearing debt, debt ratio of 43.

62% (+6.

2pp), the gap between the length of the debt ratio of the leading companies in the garden 苏州桑拿网 sector is about 70%, and the gap between the horizontal length and the length of the contraction is reduced, and the expansion space penetrates; the gross profit margin is 28.

17% (-0.

2pp), management / finance / period fee 5.

58% (-0.

5pp) /-0.

31% (-0.

2pp) / 5.

27% (-0.

8pp), net interest rate is 20.

39% (+0.

5pp); the cash-to-cash ratio is 44.

1% (-11.

5pp) / 46.

64% (-13.

8pp), the net cash flow from operations / investments increased and decreased by -0.

700 million (the same minus 0.8.6 billion) / 0.

7.6 billion (same increase of 0.

7.7 billion), due to increased investment in construction projects / termination of purchased structured financial management; net funding cash flow -1.

4.5 billion (with a decrease of 1.1 billion) was due to the company’s IPO in the previous period; the wetland leader has accelerated its expansion since the IPO and orders have grown strongly.

The project structure is better: the proportion of EPC has increased significantly. Most of the PPP projects in hand are national wetland park projects, and the funds are safe.

The company’s prospective layout of the wetland market has created a series of supplementary gold award projects such as the Hongze Lake National Wetland Park and Gonghu Bay National Wetland Park, which enjoys a reputation for exclusive rights.

Since listing in 2017, orders have grown rapidly, and a series of new bids have been reported30.

300 million (1 regular income to France.

9 times), new sign 25.

800 million, the revival in 2019 won 73.

800 million, corresponding to 4.

6 times, of which the amount of EPC is about 5 billion, and the proportion has increased significantly, which will greatly support the company’s performance growth and increase the level of construction profits.

In addition, most of the company’s PPP projects in hand are national wetland park projects, with special changes and clear support for long-term loans, and the repayment is basically safe.Make continuous contributions, including: Huai’an Baima Lake Wetland Park (1 billion) progress82.

1%; Qianjiang Century City Yanjiang Park (7.

3.8 billion) progress 99.

9%; greening in Huzhou Economic Development Zone (3.

2.0 billion) progress 98%; Liangshan County Guishan River governance (1.

2.4 billion) progress 95.

2%; Haohu Wetland Park in Donglanpo, Guangxi (2.

4.5 billion) progress 82.

6%; Tuohe National Wetland Park and Shelter Forest (5.

400 million) progress 46.

22%; Qingjiang Lake Wetland Park in Hongjiang City (2.

06 billion) progress 66.

9%; the expansion of municipal services accelerated, and the dual-municipal business pattern of “municipal + ecological” gradually became apparent.

Reported that the high-level municipal revenue increased by 92%, and the proportion increased by 13pp to 40%.

It has initially undertaken 1.2 billion new municipal projects, and has entered more than 5 billion bids for municipal projects since 2019, corresponding to an 8% increase in municipal revenue in 2018, showing an accelerated expansion trend.

We believe that the company’s “municipal + ecological” dual main business structure will gradually mature; policies continue to increase environmental protection, and the relevant market exceeds 1 trillion.

It is judged that the company’s wetland business will grow steadily, and the state reserve forest and desert park business will promote the rise.

The long-term ecological civilization construction strategy has been continuously improved. The overall central report issued the “Opinions on Comprehensively Strengthening Ecological Environmental Protection and Resolutely Fighting Pollution Prevention and Control” to continue to increase environmental protection.

Roughly estimated that the company’s wetland, state reserve forest and desert park market scale will exceed one trillion. The company will fully benefit from the advantages of wetland business and the state-of-the-art layout of the state reserve forest desert park. (1) In terms of wetlands,In the “Five-Year Plan”, the Forestry Bureau has determined that the wetland area will not be less than 800 million acres in 2020, and the existing approved market for the construction of national wetland parks will reach more than 288 billion yuan;”Construction Plan (2018-2035)”, the Forestry Bureau has cleared the goal of 7 million cubic meters by 2020 and 20 million cubic meters by 2035. The scale of expansion is expected to exceed 500 billion, and the average annual market expansion is increased by 260-380.(3) In terms of desert parks, according to the National Desert Park Development Plan (2016-2025) and other documents, there have been more than 300 desert parks to be built, and the market space is expected to be more than 300 billion.

The company reported that the development of the national reserve forest and desert park market has achieved results, signed a cooperation agreement (40 billion) with the Zhenping County Government, and smoothly promoted the national reserve forest in Luocheng District, Luohe City, and the grassland restoration and management project in Taostu Village, Delingha City, Qinghai.; Introduce a large number of talents, implement executive shareholding and employee shareholding plans, and further release business vitality to expand.

The reported company introduced 120 management and technical personnel (the total number of companies is about 400), launched the first phase of the employee stock incentive plan, which was converted into buying 2,216,128 shares (accounting for 0 of the total share capital).

At the same time, some executives gradually increased their holdings of 596,529 shares to demonstrate the company’s confidence in the business outlook; profit forecast and investment rating: the company is expected to achieve operating income of 26 in 2019-2021.

02 billion, 35.

8.7 billion, 45.

05 ppm; net profit attributable to mothers is 4.

8.4 billion, 6.

7.2 billion and 8.
2.7 billion; EPS is 1.
52 yuan, 2.

11 yuan and 2.

6 yuan, the corresponding PE is 13 respectively.

2X, 9.

5X and 7.

7 times.

Covered for the first time and given a “Recommended” rating.

Risk reminders: 1. Investment is less than expected; 2. Market competition risk; 3. Financial risk.

CNPC Engineering (600339) 2018 Annual Report and 2019 First Quarterly Report Comment: Exchange Exchange Contributes Major Performance Increases and Endogenous Growth Still Needs Patience

CNPC Engineering (600339) 2018 Annual Report and 2019 First Quarterly Report Comment: Exchange Exchange Contributes Major Performance Increases and Endogenous Growth Still Needs Patience

Event: The company released its 2018 annual report and 2019 first quarter report.

In 2018, it achieved operating income of 586.

23 ppm, +5 a year.

89%; net profit attributable to mother 9.

55 ppm, +42 for ten years.


In the first quarter of 2019, operating income was 93.

47 trillion, ten years +12.

57%; net profit attributable to mother 0.

6.5 billion, turning losses into profits before.

The company plans to distribute 0 for every 10 shares.

52 yuan.

Main points: 1.

Beneficial exchange net income increased, performance growth increased in 2018, the company achieved net profit9.

5.7 billion, in line with our expectations, mainly from the first-tier subsidiary China Petroleum Engineering Construction Co., Ltd. (6.

330,000 yuan, 66.

13%) and China Huanqiu Engineering Co., Ltd. (2.

270,000 yuan, 23.


Net profit growth rate 42.

2%, mainly due to net exchange gains6.

15 ppm, an increase of 11 per year.

1.4 billion (2017 net loss of 4.

99.6 billion); interest income 3.

59 ppm, an increase of 1 per year.

49 trillion, resulting in company financial expenses -8.

04 million, a decrease of 12 per year.

6.9 billion yuan.

In 2018, the company did not complete its high-level net profit target of 10.

500 million US dollars, mainly due to (1) the main business gross profit42.

18 ‰, a decline of 13 per year.

23%; gross profit margin of main business 7.

25%, reducing by 1 each year.

57 units.

Mainly because some of the contracts extended by the company around 2016 were at the peak of execution. At that time, due to the impact of international oil prices, the competition in the superimposed 北京桑拿网 project construction market was fierce, and the gross profit margin of contracts gradually increased.

Among them, the pipeline and storage and transportation engineering business realized the main business income 174.

8.1 billion, accounting for 30.

02%; realized the main business gross profit 9.51 ppm, gross profit margin 5.

44%, a decrease of 2 per year.

25 units.

Refinery and chemical engineering business realized main business income of 126.

8 billion, accounting for 21.

78%; realized main business gross profit11.

89 trillion, gross profit margin 9.

38%, a decrease of 5 per year.

09 averages.

The highlight is that the main business income of oil and gas field surface engineering business is 246.

2.6 billion, accounting for 42.

30%; realize gross profit of main business16.

82 ppm, gross margin 6.

83%, increasing by 0 every year.

91 units.

(2) Expenses increased and management costs were 30.

0.94 million yuan, an increase of 20 in ten years.

94%; selling expenses 0.

86 ppm, an increase of 17 in ten years.

56%; R & D expenses1.

25 ppm, an increase of 18 years.


In the first quarter of 2019, the company turned losses into profits, mainly because the net exchange loss in the current period decreased by 2 compared with the same period last year.

180,000 yuan, interest income increased by 0 over the same period last year.

35 trillion, resulting in 0 financial costs.

93 ppm, a reduction of 2 per year.

5.1 billion.

The company’s sales gross margin is 9.

7%, down 2 every year.

99 digits, but up by 0 from the previous quarter.

47 units.


The industry’s marginal improvement and supplementary policy catalyze the future. In 2018, the company’s new contract value is 934.

62 ppm, a decrease of 10 from 2017.

99% have won the contract without signing 37.

7 trillion, 103 outstanding contracts that have come into effect.

4 billion.

The decrease in the number of newly signed contracts was mainly due to the company’s refined management and finer division.

Of the newly signed contracts, domestic contracts amounted to 678.

3.9 billion yuan, accounting for 72.58%; overseas contract value is 256.

2.3 billion, accounting for 27.


Among them, CNPC’s newly signed contract value for out-of-system business was 394.

4.5 billion, accounting for 42.


In 2018, the new contract value of oil and gas field surface engineering business was 171.

8.4 billion yuan, accounting for 18.

39%; the new contract value of pipeline and storage and transportation engineering business was 226.

4.7 billion, accounting for 24.

23%; the new contract value of oil refining and chemical engineering business was 375.

9.6 billion, accounting for 40.

23%; 160 new contracts signed for environmental engineering, project management and other businesses.

3.4 billion, accounting for 17.


In the first quarter of 2019, the company’s newly signed project contract value was 112.

87 trillion, +59 for ten years.

38% of bids have been awarded for unsigned contracts.

4.5 billion, has reached long-term outstanding contracts 121.

8.2 billion.

Among them, the amount of newly signed domestic contracts was 84.

23 trillion, 28 newly signed contracts abroad.

6.4 billion.

In 2019, the company’s main task target: new contract value of 9.77 million yuan, +4 per year.

53%; operating income of 60.9 billion yuan, +3 in ten years.


Large oil and gas consuming countries, industry marginal improvement: As a large oil and gas consuming country, we believe that “coal reduction, oil stabilization, and gas extraction” are still the development trend of the energy structure during the “13th Five-Year Plan” and even the “14th Five-Year Plan”, and oil and gas still occupy an important position.

With the recovery of oil prices and the incorporation of a national strategy for energy security, upstream capital expenditures have bottomed out and the domestic refining and chemical engineering market is in an expansion period. The chemical industry will enter a new round of expansion in 2018 (solid investment rate + 6%).Benefit.
In 2018, PetroChina’s capital expansion was 2,559.

74 trillion, ten years +18.


In 2019, the capital expenditure plans of Sinopec, PetroChina and CNOOC will increase by 15 respectively.

51%, 17.

43%, 19.

81%, maintaining high growth.

The establishment of a national pipeline network company catalyzes the policy: As the “three barrels of oil” oil and gas pipeline network is expected to replace, in recent years, in terms of pipeline investment, related construction has seriously lagged behind market demand and policy planning.

Benchmarking the world, the potential of pipe network construction in developing countries is huge.

Taking the United States as an example, the natural gas production and consumption are 1/5, 1/3 of the United States, but the natural gas pipeline mileage is only 1/9 of the United States; crude oil production and consumption are 1/3, 7/10, respectively.The crude oil pipeline mileage is limited to 3/10 of the United States.

After the establishment of the national pipeline network company, it is urgent to unify the planning and accelerate the construction of the oil and gas pipeline network.

According to reports, the national pipeline network company is expected to be established in 2019.Assume that the investment intensity of the pipeline is 10 million yuan to 20 million yuan / km. By the end of 2025, the new investment scale of nitrate hydrocarbon pipeline network will reach 1-2 trillion yuan.

At the same time, this is also one of the effective measures for the current macroeconomic counter-cyclical.

China Petroleum Pipeline Engineering Co., Ltd., the company’s second-level subsidiary, holds a major market share.


Earnings forecast and rating We estimate that the company’s net profit attributable to its parent for 2019-2021 will be 9 respectively.

7.5 billion, 11.

4.4 billion, 15.

610,000 yuan, corresponding to EPS 0.

17 yuan, 0.

20 yuan, 0.

28 yuan, PE 28.

1X, 23.

9X, 17.

5 times.

Considering that the company is a construction platform for CNPC engineering, its strength is breakthrough, and a world-class “one-stop” full industry chain engineering service provider is established to benefit from the continuous recovery of the oil and gas industry and maintain the “overweight” level.

Risk reminder: Oil prices fluctuate sharply, exchange rates change, it takes time for the industry to recover

Guosheng Securities-China’s core asset united front is establishing domestic capital to seize the right to speak

Guosheng Securities: China’s core asset united front is establishing domestic capital to seize the right to speak

China is building a united front of core assets: Guosheng a strategy Zhangqi Yao, in the past: the right to intervene core assets have been closely linked since August 2018, we published numerous research reports in the hands of foreign exchange mutual admission rhythm and trend-core assets, one of whichImportant representatives are the core assets represented by large consumption, and the right to speak is in the hands of foreign countries.

Taking the change of the Food and Beverage Index / Shanghai and Shenzhen 300 as an example (food and beverage is the sector with the most capital allocation in the north), in the past few years, its net settlement scale with Lugutong has been very consistent. When it is rich in inflows, such as 18In May, June and the beginning of this year, food and beverages achieved significant excess returns, and when foreign exchange flows into circulation, the plate’s rise is lagging behind.

Therefore, the foreign entry rhythm determines the excess income of the food and beverage sector. The same applies to consumption leaders and core assets other than food and beverage.

In fact, the dominance of core assets is in foreign hands.

  Why do foreign countries become the dominant variable?

  The specific reasons have been repeatedly explained in the Air Force series of reports: First, from the perspective of incremental funding, foreign countries have been the most important marginal increase in the entire market over the past few years.

At the end of 16 years, the size of foreign-shared A shares was only 6.500 billion, and the latest foreign shareholding scale was close to one.

7 trillion, and public offering, insurance has become a three-legged stand (for details, see report 20180821 “Big consumption,” Nike-shaped “turning point has reached”).

Especially in 2018, global volatility has intensified, funds in emerging markets have fled, internal and external dividends have been shocked, domestic investor sentiment has fallen, but the scale of foreign exchange inflow has reached a new high, and the entry of capital to the north has reached 300 billion, which has become an important support for the A-share market.(For details, see report 20180824, “Global volatility has intensified. Why are foreign countries still buying?”

  In addition, from the perspective of foreign configuration preferences, referring to the experience of Taiwan and South Korea, exchange configuration substitution has a very strong continuity, and always favors local advantageous industries and specialty industries (for details, see report 20180827, “Long Cycle Perspectives, 南京夜网 Too Many Drivers for Large Consumers”””).
For A-shares, core assets represented by large consumption leaders have always been the most preferred direction in foreign countries.

  To sum up, foreign countries are the most important marginal increase in the market in the past two years, and the configuration changes are stable and the holdings are concentrated, so they have a strong influence on the trend of core assets.

  Second, now: foreign turmoil has intensified, and domestic capital has seized the right to speak for three months, and the trend of core assets and foreign exchange admission rhythm have clearly deviated from January and February.Slowing down, in May, trade frictions resurrected, the global turbulence oscillated, and incident pressure increased.

However, on the other hand, core assets represented by large 杭州桑拿 consumption have continued to obtain excess returns, forming a significant departure from foreign flows.

  We believe that the three major reasons for this change are profitability.

The core assets represented by consumption in the first quarterly report of the annual report have better performance stability as a whole.

And from March, the initial increase in risk can be increased, the time when liquidity is the most accommodative gradually passes, and the driving force is gradually switched from the denominator end (liquidity + risk appetite) to the numerator end.

Therefore, core assets with better performance stability are favored.

  More importantly, the market’s attention to foreign countries has increased, and many investors have recognized our judgment on the “long-term trend of foreign inflows”.

Since August last year, we have drafted and written a series of foreign research reports. We have pioneered the construction of many research frameworks from multiple perspectives such as foreign admission space, configuration preferences, and Taiwan-South Korea comparison.

However, few people were interested at the time, and most investors did not realize the essence of foreign A shares and still regarded it as a secondary or disturbing variable.

  However, at least one month of large-than-expected growth every year. During the period of foreign exchange exceeding the expected growth, most investors realized their influence on the core assets of A shares, only to find that the speed of the transfer of land shares was excessive and that they had excessive holdings.The size of some stocks is approaching the public insurance fund.

We are also very pleased to see that our final research results have received market attention and recognition: We judge that the current cross-inflow of A-shares is still in its infancy and will continue to welcome trillions of increments in the future, and is expected to become the largest institutional investor andThe most important source of funding.

Moreover, its allocation preferences will continue for a long time, so core assets represented by large consumption will continue to absorb the general trend of foreign investment inflows.

  Therefore, due to the global turbulence and phased withdrawals, many investors, like us, do not think that redundant short-term withdrawals will affect their long-term market entry trend. Therefore, we can see domestic investors discarding their chips in a panic.

  The most fundamental reason is that the domestic investors’ own investment style and aesthetic preferences are undergoing subtle changes, even from quantitative changes to qualitative changes.

We believe that this change has three triggers: First, in the collision with foreign countries and exchanges with foreign institutions, such as the unprecedentedly popular Buffett shareholders meeting this year, domestic investors have a deeper understanding and perception of foreign investment concepts, Its own investment style may also be affected by it.

  In fact, in the past few years, the value style has been able to obtain excess returns for many times. In other words, there is also a trend in the value of the A-share market with a wide audience of trend investment.

  Finally, in recent years, the structure and assessment methods of domestic investors have gradually changed, and more and more attention has been paid to long-term and low volatility.

  These three factors together lead to the domestic investors’ aesthetic preference and investment style gradually moving closer to the core assets.

  Third, the future: the united front of core assets is being established. First, there is a tendency of “holding cliques” of existing funds. First, from the perspective of the game of existing funds, institutional investors are showing a trend of “holding cliques” toward core assets.

To some extent, the core assets now resemble the GEM of 13-14 years, showing a clear “holding group” characteristic of existing institutions.

  Taking public offerings as an example, its shareholding structure continues to concentrate on core assets.

As of the first quarter of 2019, the total size of public offering shares reached 1.

95 trillion, accounting for about 4 A shares of the total market capitalization.


Since the end of the Q1 2016 stock market’s dramatic transformation, the position structure of public offerings has changed significantly.First of all, from the perspective of position concentration, public equity funds have shown a clear concentration trend in the past three years. The share of the top 50 heavy stocks has increased from 27% in 2016 to the current 50%. The top 100 heavy stocksThe market capitalization ratio has increased from 40% to 65%.

In fact, on the industry scale, the distribution of publicly held dividends is clearly concentrated in food and beverage, financial real estate, and home appliances, while the positions of TMT and the cycle sector generally overlap; finally, comparing the list of publicly held and foreign (northbound) heavy storage stocks, you can find the pastWithin three years, the degree of overlap between capital and heavy stocks has continued to increase.

  In fact, the nature of incremental funds determines that it will focus more on the perspective of core assets. The nature of incremental funds is the core factor that affects the style of the market.

For example, in the bull market in 14-15 years, under the background of the systematic relaxation of liquidity and the emergence of various levers, the main increase in the market came from households’ moving deposits and leveraged funds, with fast entry and the pursuit of high returns and flexibility.The bull market became a “mad cow”, and high-beta stocks outperformed significantly.

In fact, the bull market of A-share calendars is usually the case. This “car launched” bull market is often more emotional than rational. Therefore, the transformation of the bull market is carried out, the estimation system and value judgment will be invalidated, and the funds will continue to flock to highly elastic and strong storytelling stocks.

  But this time is not the same, the medium and long-term incremental funds will be involved.

First of all, last year’s economic work conference clearly pointed out that the medium and long-term incremental funds will be dated for the capital market.

First of all, in February of this year, the market enthusiasm has increased significantly, and funding has begun to move, but the regulatory response has been very rapid, preventing short-term capital from entering the market irrationally.

  In the future, the main force of incremental funds will come from the following blocks: First, social security veterans: According to data released by the Ministry of Human Resources and Social Security, as of the end of the first quarter of 2019, 17 commissioned provinces (autonomous regions and municipalities) signed 858 billion US dollars in commissioned investment contracts.There are currently US $ 624.9 billion of registered investment operations. If it grows by 11%, about US $ 68.7 billion of funds will enter the stock market.

  In October 2018, the “Blue Book on Pension Finance: China Pension Finance Development Report (2018)” published in the social science literature mentioned that “the scale of basic pension investment exceeded expectations, but the current basic pension insurance fund balance for urban employees exceeds 4.

39 trillion, but it is expected that the final entrusted investment and operating fund size may be within 1 trillion. The bottom guarantee and income protection model is not conducive to long-term value appreciation. Therefore, a small number of provinces and regions in the Blue Book take into account the safety and profitability of pensions and focus on long-term changes.Guarantee the bottom and protect the income model, give full play to the long-term attributes of pensions, long-term operation and long-term assessment.

“So in the short term, the investment and operation scale of pensions in the past one or two years may be about 1 trillion yuan. If it is increased by 11%, that is, about 110 billion yuan is invested in the stock market, an increase of about 41.3 billion yuan. But in the long term,The guaranteed income model will change, and it will be incorporated in more regions at the same time. The allocation of equity equity assets will have a conflicting increase in the proportion of investment. In the future, pension funds will still enter the stock market with hundreds of billions of funds.
  Basically it is insurance capital: through the use of insurance funds surplus, the proportion of stock and fund investment in the use of capital surplus can be roughly invested into the volume of insurance capital into the stock market.

In the future, the increasing demand for endowment insurance caused by the aging of the population and the upgrading of consumption concepts, there is still room for growth in premium income.

  We see that the growth rate of the balance of insurance capital use maintained at a high level from 2014 to 2016, and has declined after 2017, but remained at about 11%; the proportion of insurance funds invested in funds and stocks remained above 12% before 2017.In 2018, there was a decline, but in the first quarter of 2019, it returned to more than 12%. Therefore, we assume that the future balance of insurance fund use will increase at a growth rate of 11%, and the proportion of entering the market will maintain a growth of 12%. Insurance funds can bringAn increase of 200-300 billion.

  Then comes the bank’s wealth management funds: At the end of 2018, the “Administrative Measures for Commercial Banks’ Wealth Management Subsidiaries” was officially released to relax restrictions on investment in stocks, non-standards, and product issuance and sales of bank wealth management products.

The current balance of non-capital-guaranteed wealth management products of banks exceeds 22 trillion yuan, and the implementation of wealth management subsidiary management measures means that the beginning of the formal transformation of banking wealth management products will also provide a huge long-term increase for the stock market.

  Finally, although the short-term is shortened, the general direction of long-term foreign entry will not change: from a series of reports from August last year, we have pointed out that foreign exchange inflows are a megatrend long logic: 1. A shares have just separated from MSCI, according toTaiwan and South Korea experience, in the process of increasing the proportion of MSCI, the exchange will maintain a one-way inflow with a considerable delay; 2. The current allocation of a share is still low at only over 3%, referring to the rich proportion of Taiwan and South Korea(15%?
30%). Currently, the allocation is still far too low, and global funds are still “flowing to lower places”; 3. The current capital market and opening up are accelerating in an all-round way, and the access channels for international capital are continuously expanding.The flow of inflows has accelerated significantly during the financial opening phase.

Therefore, we judge that foreign inflows of A shares are still in the initial stage, and there will still be trillions of incremental conversion allocations in the future.

  Therefore, from the perspective of the nature of incremental funds, in addition to foreign countries, social security veterans, insurance funds, bank financing will be an important source of incremental funds for A shares.

In addition, the investment style and assessment duration of these funds are similar to those of foreign countries, and more emphasis is placed on the allocation of medium and long-term assets. The core asset must be its most important allocation direction.

  In summary, the gradual inheritance of foreign reintroduction is on the right track, and the trend of “holding groups” in public offerings continues. Incremental funds such as social security insurance, insurance funds, and bank wealth management have gradually entered the market. A unified front of core assets is being established and will become a centralized direction of capital allocation.
  We are currently experiencing two rounds of simple bullish ups and downs, and another round of A-shares has undergone a major transformation from an unprecedented level. The root of the transformation is a systematic change in the structure of investors.

We will usher in a big era from retail to institutions, from trading to configuration, from Beta to Sharpe Ratio.

This will be an era of institutionalization, an era of value, and an era of core assets.

  Risk warnings 1. Trade frictions fermented more than expected; 2. Macroeconomics changed more than expected.

Longji (601012): Production capacity steadily expands and costs continue to fall

Longji (601012): Production capacity steadily expands and costs continue to fall
The company released its 2018 annual report and 2019 quarterly report: the company’s revenue, 杭州夜网 return to net profit, after deducting non-return, net profit increased by 34 in 2018.38%, -28.24%, -32.36%.In the first quarter of 2019, they increased by 64 each year.56%, 12.54%, 17.81%.High revenue growth and profit growth in line with expectations.The company continues to promote the expansion of monocrystalline silicon wafers, battery wafers, and module production capacity. At the same time, the cost of silicon wafers continues to decline, and the channel capabilities and management level of module business are expected to further improve.Maintain “Highly Recommended-A” rating, target price is 27-29 yuan. Performance growth was in line with expectations.In 2018, the company’s revenue was attributed to net profit, and the net profit after deduction was 219.88, 25.58,23.44 trillion, an increase of 34 each year.38%, -28.24%, -32.36%.In the first quarter of 2019, the company’s revenue was attributed to net profit, after deducting non-return, it was 57.10, 6.11, 5.960,000 yuan, an annual increase of 64.56%, 12.54%, 17.81%.High revenue growth and profit growth in line with expectations. Expanding the number growth, the performance of overseas markets is dazzling.In 2018, the company’s external sales of monocrystalline silicon wafers reached 19.6.6 billion pieces, corresponding to a revenue of 61.1.6 billion, an annual increase of 74.60%, 6.31%; single crystal module sales reached 5.99GW, corresponding to 130.91 trillion, an increase of 70 each year.78%, 42.68%, of which, overseas sales reached 4.03GW, an annual increase of 30%.It is expected that the company’s external sales of monocrystalline silicon wafers will reach 9 in the first quarter of 19th.8.2 billion tablets, corresponding to a revenue of 25.9.3 billion, an annual increase of 212.74%, 96.74%; single crystal module sales reached 1.24GW, corresponding to income 23.750,000 yuan, an annual increase of 61.04%, 29.70%, of which overseas sales reached 0.94GW, a year-on-year increase of 154%. Continue to promote the production of silicon wafers, battery wafers and module production capacity.As of the end of 2018, the company’s monocrystalline silicon wafers, battery wafers, and module production capacity were 28, 4, and 8, respectively.8GW, which is expected to reach 36, 10, and 16GW at the end of 2019, respectively.The company’s monocrystalline silicon wafer market share is about 40%. The existing monocrystalline silicon wafer construction rate and planned production capacity still maintain a leading position in the industry. It is expected that it will maintain the first market share in the next few years.The production capacity of battery cells is growing rapidly, and the matching degree with the production capacity of modules is rapidly increasing, which can effectively reduce the dependence on the production of battery cells. The non-silicon cost of single crystal silicon wafers is still falling rapidly.The company’s monocrystalline silicon wafer has the lowest non-silicon cost industry. As of the end of 2018, the average non-silicon cost was controlled to be less than 1 yuan / piece.49%, the slice drops by 27 per second.81%.The cost of single crystal silicon wafers has experienced a significant decrease in the past few years, and it is now maintaining a rapid downward trend.With the launch of new production capacity, reaching production, optimizing, at least the cost has dropped significantly. Investment suggestion: Maintain “Highly Recommended-A” rating with target price of RMB 27-29. Risk warning: domestic demand is less than expected, and demand in overseas markets fluctuates.

Qiaqia Food (002557) 2019 Interim Report: Performance Meets Expectations Steady Increase in Profitability

Qiaqia Food (002557) 2019 Interim Report: Performance Meets Expectations Steady Increase in Profitability

Performance is in line with expectations, and profitability has steadily increased 2019H1 revenue19.

8.7 billion (+6.

02%), net profit attributable to mother 2.

20 billion (+28.

08%), with 19Q2 revenue of 9.

47 billion (+11.

78%), net profit attributable to mother 1.

07 billion (+20.

79%). In the past, revenue has shown an accelerating growth rate over the previous quarter, and performance has met expectations.

19H1 gross profit margin 31.

82% (+2.

31 pcts), of which 19Q2 gross margin was 33.

40% (+3.

18), mainly due to the company ‘s price increase on some red bags and green bags in July last year (the price increase products accounted for about 70% of Guazi’s revenue).

19H1 net interest rate 11.

17% (+1.

73pcts), of which 19Q2 net interest rate is 11.

24% (+0.

51 pcts), the main reason is that the management expense ratio has fallen by 1 due to scale effects.

5pct, sales expense ratio increased by 0.


19H1 operating cash flow 4.

68 billion (-6.

21%), mainly due to the sale of goods and the provision of labor services received cash increased by 3.

87% and advances increased by 203.


Nuts perform well and e-commerce maintains high growth. From the perspective of products, the company’s product structure continues to optimize. The proportion of seeds is still high, accounting for nearly 69% (+ 5 pcts) in 19H1, and its revenue is 13.

70 billion (+14.

29%), we expect 19H1 red bags, green bags to grow faster than 10%, blue bags to grow faster than 20%; in 19 the company mainly promoted nut products, 19H1 revenue was 2.

7.9 billion (+39.

(83%), which increased from 11% in 18H1 to 14% in 19H1. It is expected that this year the company will launch offline nut specialty stores Qiaqia Nut Garden, which is currently promoted as a shop-in-shop model, and will focus on large commercial districts and office 杭州桑拿网 buildings in the future.

The company has strengthened the development of offline channels. The small yellow bag has increased rebates in traditional stores / wholesale channels, and has tied core personnel such as store managers and shopping guides. It is expected that the 19-year target (8 billion tons) will be completed.

From a regional perspective, the southern, northern and eastern regions maintained steady growth, with e-commerce revenues of 2 in 19H1.

12 billion (+62.

08%), mainly due to the company’s adjustments to e-commerce, online promotion and drainage of key offline products (such as the daily nut launch of online regional packaging).

Focusing on nuts and seeds, resources integration promotes the development of products. The company focuses on the nuts and seeds business, and promotes the development and use of daily nut automated equipment. The blue bag series of seeds promotes new flavors and new packaging.Delicious “to create benchmarks for key cities.

In terms of mechanism reform, between the company’s business divisions and internally, BUs continued to introduce performance PK plus a partnership mechanism. Through talent assessment and 360 assessments, it stimulated the vitality of positions and built a partnership mechanism.

Overseas, the company established its first overseas factory in Thailand in July. The overseas market is centered on Thailand, the United States, Russia, and Indonesia to expand the development of blank markets. In terms of resource integration, the company absorbed and merged its wholly-owned subsidiary Hefei Huakang, and suspended cooperation with Sinopec’s Sichuan sales project.

Investment advice forecasts EPS 0 for 2019-2021.



25 yuan, corresponding to PE26 / 22/20, maintain “Buy” rating.

Risk warnings on food safety issues; growth of raw materials; sales of core products fall short of expectations;

Tianbang (002124): Q3 profit significantly improved breeder production capacity rebounded significantly

Tianbang (002124): Q3 profit significantly improved breeder production capacity rebounded significantly

The event company released a third quarter report for 2019.

The company’s operating income was 44 on January 9, 2019.

54 ppm, an increase of 40 in ten years.

12%; net profit attributable to shareholders of the listed company is 0.

12 ‰, a decrease of 90 per year.

12%; net profit after substitution of non-recurring profit or loss attributable to shareholders of the listed company is -1

500,000 yuan, a year-on-year decrease of 523.


By quarter, 2019Q1 / Q2 / Q3 company operating income was 12 respectively.



1.4 billion, an increase of 47 each year.

64% / 66.

38% / 14.

97%; net profit attributable to mothers is -3.

35 / -0.


79 trillion, an annual increase of -1141.

95% /-166.

23% / 841.


Our analysis and 杭州桑拿网 judgment benefited from the substantial increase in pig prices, the third quarter of 2019’s high performance in 2019Q1 affected by African swine fever, farmers’ risk aversion and concentrated selling. According to wind data, the average national pig price in the first quarter of 201912.

96 yuan / kg, the sluggish pig price and the company’s increased epidemic prevention costs, the company achieved net profit of -3 in the first quarter.

35 ppm; In March 2019, pig prices entered an upward channel, and the average national pig price in Q2 2019 was 15.

69 yuan / kg, the company in the second quarter achieved net profit attributable to mother-0.

3.2 billion.

As hog prices continue to hit new highs, the average national hog price in Q3 2019 is 23.

At 08 yuan / kg, the company sold 510,000 pigs in the third quarter and achieved net profit of returning to mothers3.

79 trillion, a high increase of 841 in ten years.


2019Q1-3 company sells commodity pig 202.

700,000 heads, with sales income of 33.

2.7 billion, with an average sales price of 15.

39 yuan / kg, with temporary changes of 40.

91%, 69.

59%, 28.


In Q3, profitability improved significantly. In terms of gross profit margin during the period, the company’s gross profit margin for Q1-3 2019 was 10.64%, a decrease of 4 per year.

41 points.

In terms of net interest rate, the company’s net interest rate for Q1-3 2019 was 0.

31%, a decrease of 3 per year.

42 points.

By quarter, 2019Q1 / Q2 / Q3 gross profit margins were -6.

12% / 10.

44% / 24.

65%, the net interest rate is -27.

00% /-1.

89% / 25.

22%, the third quarter profitability improved significantly.

In terms of expense ratio, the company’s sales expenses in Q1-3 of 20192.

27%, a decrease of 1 per year.

87 points; management and R & D expenses 8.

52%, reducing by 0 every year.

87 points; financial expenses 2.

24%, 0 per year.

95pct, mainly due to the company’s increased loans.

The company’s period expense ratio declined.

The pig price is expected to continue to be high from 2019Q4 to 2020. The company’s slaughter situation has improved in September, and the production capacity of breeding pigs has increased. As the sow stock can be multiplied corresponding to the slaughter of commercial pigs after 10 months, according to data from the Ministry of Agriculture and Rural Affairs,The number of breeding sows inventories decreased by 38.

9%, a decrease of 2 from the previous month.

8%, so it is believed that by the first half of 2020, the surplus situation of hog supplementation is still difficult to change, and the price of pigs is still upward momentum. In 2020, the price of pigs will still run at a high level, and the average price will exceed 2019.

The company’s first nine months were only in July. In August, there was a decline in the number of pigs slaughtered. In September, the slaughter volume has achieved a positive turn and increased by 7.


In addition, the company’s productive biological assets reached 6 at the end of September.

190,000 yuan, an increase of 63 from the end of the second quarter.

With 76%, the production capacity of breeding pigs will further increase, which will strongly support the company’s future growth in pig production and performance.

Investment suggestion: We expect the company’s operating income to be 72 in 2019-2020.

47 ppm and 112.

22 ppm, an increase of 60 in ten years.

36% and 54.

86%; net profit attributable to mothers is 7, respectively.

4 billion and 52.

00 ppm, an increase of 229 per year.

37%, 602.

70%; corresponding PE is 23.

5x and 3.

3x, maintain “Buy” rating.

Risk factors: The price of hogs has fallen sharply; the swine fever epidemic has affected the number of listed companies.

Repurchase Trend in Epidemic Period-A Self-Rescue Action by A-share Listed Companies

Repurchase Trend During Epidemics: A “Self-Rescue” Action by A-Share Listed Companies

For stocks, please read Jin Qilin analyst research report, authoritative, 南京桑拿网 professional, timely, and comprehensive, to help you tap potential potential opportunities!

  The repurchase trend during the epidemic period: A “Self-Rescue” action by A-share listed companies Source: Lan Fu Finance original Tan closed on the 10th today. The first week of the epidemic is officially over.

Fortunately for many investors, although pneumonia is still raging outside Wuhan and Wuhan, but in the secondary market, in addition to the expected range of killings on the first day of opening, funds have shown a lot of liquidity andActive funding sentiment.

  Undoubtedly, this week’s market has given us full confidence, and the basic trend is also in line with the expectations in this week’s list of rich financial tweets “not without vitality under the epidemic”.

  However, under the better market trend, some investors still feel some concern. The hot stocks are basically related to the epidemic, and the industry sector that is currently suffering from the epidemic injury is still sluggish.

  It is true that if the previous economy was only slowing down, the sudden epidemic crisis can basically be said to have been the shock of pressing the pause button.

Without a quick response, the previous market behind these companies will not be optimistic.

  In fact, throughout the course of the epidemic, many listed companies have already begun to make “self-help” actions.

  According to the statistics of choice, since the outbreak of the epidemic on January 20, a total of 33 listed companies in the two cities have announced repurchase to demonstrate their confidence in the epidemic through actual actions.

  Cartography / Statistics: Among them, Lanfu Finance and Economics, Zhejiang Longsheng (600352).

(SH) In the evening of February 4, the company announced that the company intends to use its own funds to repurchase part of the company’s shares through centralized bidding transactions for employee stock ownership plans.The company with the highest repurchase amount in the city.

  Zhejiang Longsheng’s high repurchase amount can’t help but be stunned. The redemption of the repurchase announcement the next day has been greatly increased. It can even be said that the company’s successful round of operations has stabilized the replacement.

  However, compared with the proportion of large-scale repurchase companies, the “self-rescue” action of Meike Household (600337) is more practical.

The company announced in an announcement yesterday evening that it plans to repurchase the company’s shares with a fund size of 500 million to 700 million US dollars, and the shares to be repurchased will be directly converted into substitutes; the repurchase price will not exceed 6.

60 yuan / share.

  At the same time, in the face of the impact of this epidemic, Meike Home is rapidly adjusting its business strategy, using the established retail large, medium and large-scale systems, will achieve rapid online and promote comprehensive platform.

Strengthen online and offline service capabilities, make epidemic prevention a part of the service, and realize the transformation of Internet + head companies.

  Meike Household said that the company has established a strategic cooperative relationship with Tencent and Huawei to provide technical guarantee for rapid onlineization.

Meike Home will be committed to its established digital platform capabilities to promote online shopping, online consultation, online design, online ordering, online booking and delivery, and online customer service.

In addition to the traditional Tmall and JD flagship stores, Meike Home will also restore real store scenes, exhibitions, merchandise, and consumers through the application of various online “tool matrices” such as its own website and social applets.You can browse the store online through your mobile phone, allowing consumers to “home at home” or have their own design home.

With more than 1,000 design consultants with rich service capabilities and experience across the country, Meikemeijia can make full use of live broadcast, applets, remote design and other tools to provide 24/7 online services anytime, anywhere, and make every effort to eliminate the epidemic.The impact of company operations.

  Obviously, a recent self-rescue operation of Pengshang Environmental Protection (300664) also attracted some attention. The company’s main investment and operation business, engineering contract business, equipment production and sales business, design and other businesses.

  However, in the evening of February 4th, Pengyuan Environmental Protection announced that it has targeted the severe outbreak of new domestic coronavirus. In order to accelerate the development of vaccines, the company plans to invest 30 million yuan in Beijing Aiweixin Biotechnology Co., Ltd.Rapid development of coronavirus 2019-nCoV vaccine.

  The main environmental protection company suddenly announced its investment in vaccines, and this wave of operations of Pengshang Environmental Protection also smoothly covered the spot of vaccines and ushered in a round of growth.

At the same time, the company also announced a repurchase plan, the amount of repurchased shares is not less than 1 trillion and not more than 200 million yuan, the repurchase price does not exceed 15 yuan / share, 70% of the repurchased shares are used for convertible bonds30% will be used for equity incentives.

The relative value of the absolute repurchase of the shares of the joint stock company for the first time demonstrates the affirmation of the company’s internal value and the consensus of the company’s future prospects. In addition, the repurchase of the joint stock company is used to allocate incentives and convertible bonds, which is conducive to the establishment of long-term effects.The incentive mechanism can fully mobilize the enthusiasm of the company’s employees and is conducive to the long-term development of the company.

  In addition, in addition to the repurchase announcements of listed companies, too many directors and supervisors have also raised their shareholding 南京夜网 plans.

According to relevant data statistics, from the point of view of the upper limit of the amount of proposed holdings, the top is New Hope, Linglong Tire, Inner Mongolia Huadian, Three Gorges Water Conservancy, the amount of which exceeds 100 million yuan.

  The original person analyzed that although from the current situation, the A-share market is operating steadily, these listed companies have launched repurchases at this time, and the shareholding plan will help stabilize investor confidence.

However, many listed companies have always planned to increase their holdings or buybacks, but in reality, investors need to pay attention to the relevant situation.

Luxion Precision (002475): Multi-field forward-looking layout precision manufacturing giant thrives

Luxion Precision (002475): Multi-field forward-looking layout precision manufacturing giant thrives
Leading domestic precision manufacturing companies, covering for the first time, give a “strong recommendation” rating: As a leading domestic precision manufacturing company, Lixun Precision has many product lines such as connectors, acoustics, antennas, motors, wireless charging, etc. Many types of products are cut into the Apple supply chain.The company started from consumer electronics and gradually expanded to the field of 5G communications and automotive electronics. It has become a precision manufacturing platform company that spans multiple fields and covers multiple product lines.We believe that the company will fully benefit from the continuous innovation of consumer electronics products, the coming of the 5G era and the acceleration of automotive electronics.It is estimated that the company’s net profit attributable to mothers in 2019-2021 will be 38.76/52.04/61.51 trillion, corresponding to 0 EPS.94/1.26/1.49 yuan, the current sustainable corresponding PE is 22/16/14 times.Covered for the first time and given a “strong recommendation” rating. With all-round layout in various fields, the company’s high-speed growth of consumer electronics business can be expected: consumer electronics products are constantly upgraded, and supporting 重庆耍耍网 products continue to appear, and the requirements for precision manufacturing are increasing.As the wireless charging application scenario matures gradually, the size of the transmitter and receiver markets is growing rapidly; 5G promotes the transformation of antennas, and the penetration rate of LCP antennas continues to increase; the wireless headset market is booming, and the market share of AirPods continues to increase;The market share has steadily increased, and its market size has continued to expand.As a domestic precision manufacturing leader, the company has strong precision manufacturing capabilities. In the past few years, it has successfully introduced acoustic, motor, wireless charging, LCP antenna and other products to major customers.We believe that benefiting from the launch of new products such as AirPods and the continuous increase in penetration of linear motors, LCP antennas and other products, the company’s consumer electronics business is expected to continue to maintain rapid growth. Actively deploy 5G communications and automotive electronics, with great long-term growth potential: The company already has a layout in the field of 5G communications and automotive electronics.In terms of 5G communications, the company has three production lines including interconnect product lines, radio frequency product lines, and optoelectronic product lines. We believe that with the advent of the 5G era, the company’s communications business has achieved rapid growth with strong manufacturing capabilities and technology accumulation; automotive electronicsThe company’s endogenous and epitaxial two-pronged approach: The company was established in 2011 in Kunshan Lixun, and in 2012 acquired 55% equity of Fujian Yuanguang Optoelectronics Co., Ltd. and 100% equity of SUK.We believe that the electrification and intelligentization of automobiles will accelerate the trend of automotive electronics. The company’s forward-looking layout is expected to fully enjoy industry dividends. According to the Prospective Industry Research Institute, the global automotive electronics market is expected to reach US $ 355 billion in 2023. Risk warning: mobile phone sales risk; market competition intensifies risks; changes in key customer technology solutions

Kouzijiao (603589): Profitability continues to increase, value underestimates to be repaired

Kouzijiao (603589): Profitability continues to increase, value underestimates to be repaired

The company’s 18Q4 + 19Q1 revenue and profit increased by 13.

4% / 41.

6% of revenue, in line with expectations, benefiting from increased gross profit margin + lower expense rate + lower tax rate, performance growth exceeded market expectations.

Looking into the future, the trend of “upgrading + concentration” in Anhui Province will not change, and Kouzi will continue to benefit as one of the duopoly.

Taking into account the speed of expansion of competing products in the province and the current stage of increasing concentration in the province, it is expected that the company will expand its brand and channel investment, increase the market share in the province, and push the estimated return to above the central level of the sector.

Gives 19-20 EPS 3.

06 and 3.

51 yuan, currently corresponding to 18 times in 19 years, given 22 times in 19 years, corresponding to a target price of 67 yuan, the first coverage is given a “strong recommendation-A” rating.

18Q4 + 19Q1 revenue and profit increased by 13.

4%, 41.

6%, revenue was in line with expectations, and profits exceeded market expectations.

The company’s 18-year revenue was 42.

700 million, previously +18.

5%, net profit attributable to mother 15.

300 million, previously +37.


Among them, Q4 single quarter income of 10.

600 million, previously +19.

6%, net profit attributable to mother 3.

900 million, previously + 84%, revenue in 19Q113.

600 million, previously + 9%, net profit attributable to mother 5.

500 million, previously +21.


18Q4 + 19Q1 revenue and profit increased by +13 都市夜网 respectively.

4%, +41.

6%, double-digit growth in revenue was in line with expectations, and profits exceeded expectations, mainly due to higher gross profit margin + lower expense ratio + lower tax rate.

At the end of 18 years, the advance receipts increased by 3 from the previous month.

4.5 billion to 9.

200 million, a record high, advance receipts at the end of 19Q14.

900 million, ten years +0.

9%, down 4 from the previous month.

300 million, due to the normal rhythm of payment and delivery in the off-peak season.

19Q1 cash back 12.

200 million, at least -1.

72%, operating net cash flow is 0.

65 billion, previously +140.

5%, beautiful performance, mainly due to reduced statutory taxes and fees.

The price increase + structural upgrade promoted the increase in gross profit margin, the decline in expense rate and tax rate, and pushed up the net interest rate to a record high.The company’s 18-year gross profit margin was 74.

4%, ten years +1.

5%, 19Q1 gross profit margin 77.

8%, +3 per year.

1%. The increase in gross profit margin was mainly due to price increases (18Q3 increase in ex-factory price) and product structure upgrades. According to grassroots analysis and feedback, during the Spring Festival, products of more than 10 years continued to grow at a higher rate and the product structure continued to upgrade.

The 18-year sales and management expense ratios decreased by -0.

97%, -0.

81%, mainly due to the high income growth caused by the expense ratio dilution, tax and surcharge ratio fell -1.

24%, pushing up the net margin by 5% to 35.


The 18Q4 sales and management expense ratio decreased significantly, which were -5.

29%, -1.

56%, plus the 18Q4 yield decline, from 43% in 17Q4 to 24% in 18Q4, Q4 net profit margin increased significantly by 12.

9% to 36.


1Q1 sales and management expense ratios were +0.

13%, -0.

03%, which is basically the same as last year, and the tax and surcharge ratio are reduced by -1 every year.

At 37%, the gross profit margin increased and the tax rate dropped, pushing up the net profit margin by 4 in 19Q1.

1% to 40%, reaching a record high.

The base camp in the province continued to cultivate deeply, and the effect of adjustment outside the province was initially shown.

By region, the province’s 10 years +17.

5%, the province has continued to promote the deepening of the county-level and below markets, and its market share has continued to increase; 18 years outside the province have continued to grow 27.

9% (11% in 17 years), a significant increase.

In 19Q1, the annual increase within and outside the province was 5 each year.

7% / 22.

7%, the province continued to maintain steady growth, the performance outside the province was dazzling, 19Q1 outside the province accounted for nearly 20%, after the company’s channels outside the province after adjustment, the province’s large-scale business cooperative layout outside the province, the adjustment effect has appeared.

Overall prospects: The trend of “upgrading + concentration” in the province will not change, and Kouzi will continue to benefit. It is expected that the company will expand and expand and increase expenditures to drive the level of variables.

Looking forward to 19 years, Anhui Liquor will continue to upgrade to a price band of more than 200 yuan. The products of Kouzi for more than 10 years are expected to continue to maintain a high growth rate. At the same time, consumers’ choice of brand products is becoming more and more concentrated, forcing market share to accelerate toward the brand.The concentration of enterprises will continue to benefit.

However, compared with the increase in the speed of bidding in the province, the strategy is slightly conservative, causing the company to predict that it will exceed the average level of the sector. In the stage of rapid increase of concentration in the province, the speed of expansion and promotion is even more important.Market share, and long-term drive the company’s estimated level to rise above the sector hub.

The company’s net profit margin is much higher than that of companies at the same price, and there is excess margin for brand and channel expenditure.

Investment advice: Gradual growth is highly deterministic, the current value is underestimated, and the first coverage is given a “strong recommendation-A” rating.

Kouzi Warehouse has a long-term strategic goal, focusing on stable operation, annual report quarterly performance growth again exceeded expectations, and profitability hit a new high.

Looking into the future, the trend of “upgrading and concentration” in Anhui Province will not change, and Kouzi will continue to benefit.

Looking forward to the company’s high net interest rate background, increase brand channel investment, promote increased revenue growth, and enjoy increased revenue.

Gives 19-20 EPS 3.

06 and 3.

51 yuan, currently only 18 times corresponding to 19 years. Considering the company’s provincial competition pattern and stable growth expectations, the current value is undervalued. It is given 22 times in 19 years, corresponding to a target price of 67 yuan. The first coverage is given a “strong recommendation-A” rating.
Risk warning: demand falls, competition within the province increases, and development outside the province is less than expected.

Sinopharm Consistency (000028): The distribution segment’s operation exceeded expectations and the opening of direct drug stores accelerated

Sinopharm Consistency (000028): The distribution segment’s operation exceeded expectations and the opening of direct drug stores accelerated

Event: The company released its semi-annual report for 2019, reporting that the two companies achieved operating income of 252.

3 ppm, an increase of 21 per year.

4%, net profit attributable to mother 6.

51 ppm, an increase of ten years.

42%, deducting non-net profit 6.

40 ppm, a ten-year increase2.

63%; operating cash flow 11.

60,000 yuan, an increase of 416 in ten years.

4%; distribution business realized operating income of 194.

80,000 yuan, an annual increase of 22.

66%; Realize net profit attributable to shareholders of the parent company.

82 ppm, an increase of 15 in ten years.


NUS Pharmacy achieved operating income of 61.

10,000 yuan, an increase of 18 in ten years.

75%, achieving net profit attributable to shareholders of the parent 四川耍耍网 company.

50,000 yuan, an increase of 7 in ten years.


Opinion: The revenue growth rate and operating cash flow performance in the second quarter exceeded market expectations. The single quarter revenue and profit growth rates in the second quarter were 12 respectively.

4% and 0.

5%, of which revenue growth accelerated significantly in the first quarter, operating cash flow revenue in a single quarter19.

US $ 200 million, a significant improvement from the previous quarter; the company’s sales and management expenses were well controlled, and the semi-annual sales expense ratio and management expenses increased by 16 respectively.

5% and 7.

2%, and finance costs 80 per year.

9%, mainly due to the implementation of the new lease standard in this period, and the lease debt is recognized as the financial expense in installments.

The operation of the distribution business exceeded expectations, and it is expected to achieve a revenue growth rate of more than 20%: The company’s distribution business has experienced high revenue growth after three consecutive years of growth. We believe that there are three main factors, 1) two votesThe short-term short-term effects such as the system have ended last year. After the reshuffle of the industry, local leaders ushered in restorative growth; 2) The state banned pharmacy custody and the company regained possession of some hospitals that were hosted by peers in the past; 3) the rapid approval of new drugsNew contributions such as introduction, equipment business and new retail business are abundant.

Looking ahead, it is expected that there will be no new policies that will significantly affect the industry. The pilot expansion of volume procurement will not be formally implemented until next year. Therefore, we expect the company’s distribution business to maintain a growth rate of more than 20%.

The opening of directly-operated retail pharmacies is accelerating, and the operation of NUS Pharmacy is steadily improving: the company ‘s retail business entity NUS Pharmacy opened 281 directly-operated stores and closed 53 stores in the first half of the year, a net increase of 228 directly-operated stores, and another partM & A stores have been put into operation.

In the past three years, the company has opened 400 directly-operated pharmacies. At this rate, we expect the company to promote about 600 newly opened pharmacies.

With basic reliance on endogenous income, income increases by 18 per year.

8% is the best annual level of 4; profit growth is 7.

8%, mainly due to the implementation of the new leasing standards on January 1, this year, due to accounting adjustments resulting in a net profit impact of more than 10 million, excluding the equity substitution of NUS Pharmacy and replacing this effect, we expect profit growth and revenueThe growth is considerable.

After Wabo became the strategic shareholder of NUS Pharmacy, the two sides have experienced a year of running-in and cooperation has made positive progress. NUS Pharmacy has received the resources of WBA’s global strategic cooperation manufacturers. This foreign pharmacy and WBA The “new concept” pilot pharmacy launched together was opened on January 20, Shangnan Road, Pudong New Area, Shanghai. Eventually, sales growth has increased by 34.

8%, the number of transactions increased by 31 in decades.


If the continuous improvement of NUS Pharmacy’s operating efficiency is widely promoted, after WBA’s large capital injection, NUS ‘follow-up and outreach M & A is worth looking forward to.

Profit forecast and investment advice: We forecast the company’s revenue to be 514 in 2019-2021.

9 ppm, 574.0 ppm and 639.

0 million yuan, an increase of 19 a year.

4%, 11.

5% and 11.

3%; net profit attributable to mothers is 13.

100 million, 15.

400 billion and 17.

900 million, up 8 each year.

0%, 17.

5% and 16.

4%; corresponding EPS is 3 respectively.

05 yuan, 3.

59 yuan and 4.

18 yuan.

We give the company 18-20 times PE in 2019, corresponding to a price range of 54.


5 yuan, maintain the company’s buy rating.

Risk reminder event: The operation of NUS Pharmacy did not meet expectations, and the progress of subsequent pharmacy mergers and acquisitions did not meet expectations.

The investment income part did not meet expectations.