Hailiang Co. (002203) Company In-depth Report: Cost Advantage Construction, Wall Construction, Capacity Expansion, Consolidation of Leading Position

Hailiang Co. (002203) Company In-depth Report: Cost Advantage Construction, Wall Construction, Capacity Expansion, Consolidation of Leading Position

The year-on-year growth of copper processing capacity has promoted steady growth in performance: from 2015 to 2018, the company gradually increased its production capacity through self-built projects, technological transformation and cross-mergers, driving revenue and net profit growth for three consecutive years.

At the end of 2018, the company has a copper pipe production capacity of 58 inserts, copper rods 7 inserts, and copper rows 2 inserts. At present, there are more than 50 copper processing materials under construction, and the expected capacity growth in the next two years.

In the first half of 2019, the company successfully acquired the copper alloy rod and copper pipe business where the global copper processing industry leader KME is located, inserting 28 into the copper alloy rod production line and 5.

The 2-lead copper tube production line was included in the bag, and subsequently opened up the European market.

As the company’s self-built capacity is put in batches, overseas M & A projects gradually contribute to profits, and the company’s performance growth is worth looking forward to.

Steady operation without fear of fluctuations in copper prices. Intelligent production creates cost advantages: the company only earns processing fees and does not earn copper prices. It completely hedges raw materials, completely eliminates raw material price risks, and guarantees stable profits.

At the same time, the company continued to reduce costs and reduce costs, and improved the level of intelligent automated production. The production efficiency of the single production line exceeded the industry average by 40%, which significantly improved its competitiveness.

At present, the company’s gross profit per ton of copper processing material is stable at around 3,000 yuan, and the gross profit per ton and the overall gross profit margin are second only to the production of high-end copper alloy materials in the industry.

With the launch of many new intelligent information production projects around 2020, the company’s advantages in production efficiency will be further consolidated, and the profit level is expected to increase again.

The copper pipe industry gradually integrates the company as a leader to gain resources. The domestic copper pipe market shows that Hailiang Co., Ltd. and Jinlong Copper Pipe are both strong and strong, and there are many small and medium manufacturers. Due to the limited processing capacity of channels, small and medium manufacturers are difficult to obtain stable orders.Will be gradually phased out, the industry will gradually enter the integration phase.

Hailiang is backed by the world’s top 500 Hailiang Group, and is committed to integrating order resources and background advantages. Through mergers and acquisitions and self-built capacity, it gradually increases the industry’s city share and consolidates its leading position.

Future performance with strong output growth expectations is worth looking forward to: The company’s future production volume is expected to be strong. At the same time, the company’s stable operating model and consolidated leadership can ensure the stability of profitability, and future performance is worth looking forward to.

We expect the company’s net profit to reach 12 in 2019-2021.



8.4 billion; corresponding to EPS0.



91 yuan / share, corresponding to PE16.



57 times, give “recommended” rating.

Risk warning: production capacity is less than expected copper 深圳spa会所 processing fees on a regular basis

Xugong Machinery (000425): Interim profit doubled, operating net cash flow hits record high, and hits record high

Xugong Machinery (000425): Interim profit doubled, operating net cash flow hits record high, and hits record high

Investment Highlights: Event: The company’s 1H19 revenue was 311.

5.6 billion, an annual increase of 30%, net profit attributed to the mother22.

8.3 billion, an increase of 107% in ten years, net of non-attributed net profit 21.

79 ‰, an increase of 116% in ten years, and a gross profit margin of 18.

3%, an increase of 1 per year.

0ppt, net interest rate 7.

3%, an increase of 2 per year.

7ppt, net operating cash flow 28.

4.1 billion, a record high over the same period.

1H19’s main business segment cranes / scrapers / pile machinery / fire-fighting machinery revenue growth rates were 34% / 12% / 45% / 59%.

  The gross profit margin of the crane sector increased, maintaining the leading position.

1H19’s crane business achieved revenue 114.

78 ‰, an increase of 34% in ten years, the gross profit margin of the crane business is 24.

9%, an increase of 3 per year.


  We believe that the improvement in the gross profit margin of the crane business is mainly due to the high growth in sales revenue. If the crane sales increase steadily in the second half of the year, the gross profit margin of the business will help maintain stability.

In addition, 1H19’s multiple crane products maintain the leading position, among which the mobile crane market share ranks first in the world. It has replaced half of the country in the domestic 100-ton large-ton mobile crane market, and the large-ton crane has an absolute leading position in the industry.The market share of casual truck cranes has historically reached a high level of over 60%.

  Asset quality has been consolidated, and overseas and emerging businesses have advanced in an orderly manner.

1H19 company accrued credit impairment losses7.

RMB 340,000 (increased in accounts receivable and changes in accounting policies), asset impairment losses1.

5.3 billion, a total of about 8.

8.7 billion.

We believe that the company’s substantial provision in the first 杭州夜生活网 half of the year is conducive to consolidating the quality of assets. Considering that the company’s net operating cash flow has created a record high for the same period, we expect the quality of the company’s remaining operating debt (such as accounts receivable) to improve or improve.
In 1H19, the company’s emerging business has progressed in an orderly manner. The company’s environmental compartment removable garbage truck market share ranks first in the domestic domestic industry, and the market share of road sweepers and scrubbers ranks among the top three domestic domestic companies; the first half of aerial work vehiclesThe gap between the market share and the number one in China has narrowed, and we are sprinting towards the number one in the industry.

At the same time, the company’s overseas revenue in 1H19 reached 44.

4.8 billion yuan, an annual increase of 20%.

According to the company’s semi-annual report, citing customs statistics, the export scale of the Xugong brand and its own exports both ranked first in the industry.

  Ratings and estimates.

We expect the company’s EPS to be zero in 19-21.



65 yuan.

The average 19-year estimated PB of construction machinery comparable companies is 1.

5 times, we think the company’s 19-year reasonable PB estimate interval is 1.


4 times, corresponding to 4 BPS.

33 yuan, the reasonable value range is 5.

20 yuan-6.06 yuan, “continuous market” rating.

  risk warning.

Macroeconomic downturn, crane recovery, inventory machine disposal risks.

Hangmin (600987): Industry production speeds up, leading companies are clear

Hangmin (600987): Industry production speeds up, leading companies are clear
Key points of investment: Recently, safety accidents in the chemical industry have occurred frequently. From the explosion in Xiangshui, the explosion in Kunshan, the explosion in Ma’anshan to the explosion in Taixing, which triggered the price of m-phenylamine and disperse dyes.The raw materials in the printing and dyeing industry are mainly dyes, and raw materials such as dyes + auxiliaries account for about 20%.But for competitive leading companies, they can pass on costs to maintain gross margins.From the company’s historical data, the year when fuel prices increased significantly, the company’s profitability improved.After the incident, as of 4 months, the company has raised the price of its products twice, and the price increase of dyes will benefit the company’s gross profit in the short term. The industry’s supply-side reforms have led to the elimination of low- and medium-end production capacity. At the same time, environmental protection policies have become more stringent. The introduction of environmental protection laws has also driven the cost of the industry to accelerate the clearing of industry capacity.64 printing and dyeing companies in Keqiao printing and dyeing companies were shut down, and more than 100 printing and dyeing companies were rectified rigidly, and their production increased.Hangzhou Xiaoshan District has launched a shutdown and relocation plan in 2017, and plans to reduce more than 40 printing and dyeing companies to 19 in 2021.At the same time, the cost of environmental protection has increased and the scale of printing and dyeing companies has expanded. Some continuous companies have to withdraw from the market.On January 11, 2018, the number of printing and dyeing companies surpassed 322, and the number of companies became 18.78%, an increase of 3.7 units.Accelerated liquidation of industry capacity will benefit leading companies with scale effects, strong comprehensive management capabilities and better profitability. In 2018, the company merged with Hangmin Baitai to realize the dual main business of “fabric printing and dyeing + gold jewelry”.Hangmin Baitai is a leading company in the domestic gold jewellery industry. It has long established gold jewellery processing services for old temple gold, Lao Fengxiang, Ming jewellery, and mancaron. It currently has an annual production capacity of 80 tons of gold jewelry.The volume of gold jewelry processing ranks first in East China and third in the country.Looking at the industry in the future, per capita consumption of gold jewelry in developing countries will 佛山桑拿网 still decrease. In 2016, the per capita consumption of gold and jewellery in the mainland area was only about 54 US dollars, which was far lower than the American average of 306.70 dollars, 180 in Japan.The overall level of the world such as 20 US dollars, there is still room for potential growth in the industry in the future.Hangmin Baitai’s committed net profit in 2018, 2019 and 2020 is not less than 72 million yuan, 85 million yuan and 102 million yuan respectively, which is equivalent to 10 net profit attributable to mothers in 2018.88%, 12.84%, 15.41%. Risks revealed: domestic apparel retail, apparel export growth rate improved, textile and apparel production capacity continued to shift to Southeast Asia; environmental protection and energy saving requirements further increased; raw material price risk; brand building 无锡夜网论坛 was less than expected.

UFIDA (600588): Rapid profit growth, domestic replacement prospects expected

UFIDA (600588): Rapid profit growth, domestic replacement prospects expected

The company issued a performance forecast, and it is estimated that the annual net profit for 2019 will be 1.04062-128.547 million yuan, an annual increase of 70% -110%.

The whole new generation of Yonsuite products is worth looking forward to.

YonSuite is a public 杭州桑拿网 cloud platform created by the company for growth companies. It provides integrated digital management solutions for people, finance, property and buses, connects social business networks, and supports customer-centric industrial chain collaborative business innovation.Full implementation 3.

0 strategic products, future development is worth looking forward to.

The best partner of Huawei Kunpeng.

In September 2019, the company and Huawei jointly released an enterprise digital application platform, jointly released smart financial solutions, and had more honors such as “Yunpeng Ecological Cooperation Best Practice Partner” and “Huawei Cloud Ecological Cooperation Best Practice Partner.

Against the background of Huawei’s growing ecosystem, the company’s NC Cloud has taken the lead in completing adjustments.

Became the first batch of member units of the ecological alliance of the PK system.

In September 2019, UFIDA became the first member of the ecological alliance of the PK (“P” for Feiteng Phytium CPU chip and “K” for Kirin KylinOS operating system) system.

Among them, core product services such as UFIDA NCCloud and UFIDA also passed local certifications.

Investment suggestion: It is expected that the company’s EPS for 2019-2020 will be 0.

58 yuan, 0.

51 yuan, maintain Buy-A rating, 6-month target price of 39 yuan.

Risk warning: Cloud-based execution is weaker than expected; corporate IT spending is lower than expected; financial sector growth exceeds expectations.

Huaxin Cement (600801): Regional prosperity continues to show good value

Huaxin Cement (600801): Regional prosperity continues to show good value

Event: On 夜来香体验网 August 24, 2019, Huaxin Cement released the 2019 semi-annual report. The report gradually progressed, and the company realized operating income of 143.

870,000 yuan, an increase of 21 every year.

07%; net profit attributable to mother 31.

63 ppm, an increase of 52 in ten years.

93%; Realize basic profit income1.

51 yuan.

Opinion: The average sales volume of some of the company’s products has increased, and production capacity is still in an expansion period.

In total, the company sold 3559 cement and clinker.

74 Initially, ten years increased by 10.

69%; aggregate 779 sold.

41 for the first time, growing 27 each year.

74%; sales of concrete 176.

77 for the first time, growing by 18 per year.

72%; the amount of treatment for various types of hypertension into the kiln reached 99.

In September, the whole year increased by 46%.

At present, the company ‘s Yunnan Jianchuan, Jinghong, Kaiyuan and Lincang aggregate projects are completed and put into operation, adding 450 tons / year of aggregate production capacity; Zhaotong, Yunnan; Shiyan, Hubei; Wuhan Changshankou;Hubei Yichang sludge disposal project was put into operation and the environmental protection business disposal capacity was improved in the 134s / year.

In addition, the company’s Yunnan Luquan, Hubei Yellowstone, Uzbekistan and Nepal integrated clinker production line is under construction, and the future increase in production capacity is about 700.

The high prosperity of the core market helped boost the company’s performance.

In the first half of 2019, the company’s major markets were generally positive, especially in Yunnan, Sichuan and Chongqing, which were driven by regional infrastructure, showing a situation of rising volume and price.

However, due to the reduction in the construction of key projects in Guizhou, demand has improved; the impact of rain in the first half of Hunan area also suppressed some of the demand.

In our opinion, taking the measures to limit parking in Guizhou, the supply side began to exert forces and prices rose. The weather in Hunan has improved and downstream demand will gradually be released. In the second half of the year, the market contribution of the two provinces will increase.

Continue to be optimistic about cement market repair.

Since 2019, as some regions continue to increase production capacity through reductions, and at the same time overlap the expected downward impact of the real estate market, the market has seen a double change in increasing supply and decreasing demand in the industry.

However, we believe that supply is the key factor that determines the industry’s prosperity at this stage, and demand is not inevitable.

The “National Building Materials Industry Coordination and Self-discipline to Promote Steady Growth of Economic Benefits” conference held in August 2019 once again demonstrated that supply-side control is the basis for the future development of the industry.

In our opinion, gradually the follow-up market gradually eliminates the expected difference in cement prices, and the cement sector has ushered in the repair of the market in the fourth quarter.

Earnings forecast and rating: Based on the company’s existing share capital, we expect the company’s diluted earnings for 2019-2021 to be different.

14 yuan, 3.

41 yuan, 3.

51 yuan, based on the closing price of 2019-08-27, the corresponding PE is 6 times, 6 times, and 5 times respectively, maintaining the “overweight” level.

Risk factors: macroeconomic downside risks; supply-side contraction is not up to expected risk; the risk of rising raw material costs; new business development is less than expected risk.

Sofia (002572): Growth in the second quarter accelerates the strategy of large homes to bear fruit

Sofia (002572): Growth in the second quarter accelerates the strategy of large homes to bear fruit
Investment Highlights Performance Summary: The company achieved revenue 31 in the first 四川逍遥网 half of 2019.400 million, an annual increase of 5.2%, realizing net profit attributable to mother 3.9 ‰, an increase of 6 in ten years.0%; net profit after deduction is 3.50,000 yuan, an increase of 0 in ten years.4%.  Q2 achieved revenue of 19.60,000 yuan, an increase of 12 in ten years.2%; achieve net profit attributable to mother 2.8 ppm, a six-year increase of 6.8%.Revenue and net profit growth in the second quarter accelerated.  Multi-category efforts, big home strategy achieved results.1) The solid growth of the custom closet business: revenue of 25 in the first half.500 million, an increase of 2 every year.5%; of which Q2 Sophia category income (including OEM furniture) increased by 11 in the previous ten years.6%; 2) Rapid growth of other businesses: cabinets, furniture, wooden doors, and drainage, respectively, to achieve revenue3.One hundred millionth.8 ppm / 0.8 ppm / 0.200 million, an increase of 12 each year.4% / 21.1% / 34.2% / 80.6%, contribution increase; net profit -1224 respectively.20,000 yuan / -2085.30,000 yuan, reducing losses by 42 every year.9% / 22.1%, gross margin is 27.6% / 10.3%, an increase of 2 per year.3pp / 5.9pp.In addition to customized products, the company has released OEM furniture and home furnishings, custom curtains, etc. in Sofia channels, and the joint sales of accessories have increased the unit price of customers.7% reached 10926 yuan / order.  The cost management is reasonable, and the profit margin remains stable: the rise in material costs and labor costs in the first half of the operating costs caused the company’s gross profit rate to decline.0pp to 36.7%, mainly due to the decline in gross profit margin of wardrobe products1.5pp.  In terms of expenses, the company’s period expenses were 22 in the first half of the year.4%, a year to raise 0.3pp, mainly because the company expanded its market development efforts and advertising investment to increase the sales expense ratio by 0.8pp to 11%, the management expense ratio and financial expense ratio are basically stable.In the first half of the year, the company’s large-scale engineering business increased, resulting in an increase in receivables and a decrease in net cash flow from operating activities of the company by more than 31.5% to 2.300 million.Accounts received in advance 5.10,000 yuan, basically the same as last year.In the first half of 2019, the company’s production of sheet metal in the first half of 2019 caused by the company’s production automation information technology has approached 84%, and there is room for further increase. The increase and decrease in fair value gains (subsidiary Hubei Sofia has made progress discounts) has increased the net profit margin by 0.1pp to 12.4%.  Production side and sales side are optimized simultaneously.1) In terms of channels, the sales ratio of distributor channels is 85.6%, direct sales channel sales accounted for 3%.1%, the proportion of bulk business channels is 10.8%.In line with the big home strategy, the big home fusion store has grown rapidly: in the first half of the year, there were a total of 3629 stores, a net increase of 71, of which 2470 (-40) Sofia, 837 (+15) Smy cabinets, and 146 Sofia wooden doors(+18), 176 large home fusion stores (+78).Channel optimization. Sofia added 80 new dealers in the first half of the year, 48 new development areas, eliminated and optimized 36 dealers and regions, dating high-potential, high-growth dealers, and channel optimization was very effective.2) Duration of capacity expansion: The expansion of the use of the Zengcheng Simi cabinet factory in the first half of the year, and the trial production of the Sofia Home Furnishing Factory 南宁桑拿 by Lankao Evergrande. The company currently has 7 production bases in operation across the country, adding a foundation for revenue growth.3) Operational efficiency improvement: The company has implemented fully flexible production in national production bases. The average delivery cycle in the first half of the year was 7-12 days, which marked a significant improvement from last year’s 10-12 days.  Earnings forecasts and investment advice.The EPS for 2019-2021 is expected to be, 1.57 yuan, corresponding to 15 times, 13 times and 11 times of PE, maintaining the “buy” level.  Risk warning: terminal sales are less than expected risks; multi-category expansion is less than expected risks.

Daqin Railway (601006) Operation data review for March 2019: Daily traffic returns to high levels. Coal ports move south or variables exist

Daqin Railway (601006) Operation data review for March 2019: Daily traffic returns to high levels. Coal ports move south or variables exist

Core point of view The average daily traffic volume of the Daqin Line in March returned to the high of 125 indicators. Considering the impact of spring maintenance and high power plant inventory, 北京桑拿洗浴保健 the daily traffic volume of the Daqin Line in April is expected to be about 105.

The relocation or suspension of Qin Gang will help reduce the impact of diversion if it is true.

Tax and fee reductions are expected to have limited impact, benefiting from the reorganization of the Daqin Line or continuing to maintain full load.

  Daily shipments returned to 125 attachments in March, and shipments in Q1 2019 decreased slightly by 3.

7% remained high.

In March 2019, the company’s core asset Daqin Line completed a freight volume of 3885 to reduce at least 0.


The average daily volume is 125.

In March, it basically met our previous expectations.

Daqing-Qin Line in 2019Q1 has gradually completed freight volume1.

100 million tons, a reduction of 3 per year.

At 7%, the daily growth rate of 122% is still high.

  Affected by spring maintenance and high power plant inventory, the average daily traffic in April is about 105.

As of March 31, the average daily coal consumption of the six major power generation groups was 66.

In the initial period, it increased by 35 compared with February.

1%; The coal inventory of the six major power generation groups was 1571, a decrease of 8 from February.

1%; Qingang coal inventory is 640 tons, a month-on-month increase of 17.


As of April 8, before the inventory of the six major power generation groups and Qingang coal was adjusted to 1552, 642, the Daqin line entered April for a spring maintenance period of about 25 days on April 7.
4 hours, or 10 daily shipments?
20 mm), considering the impact of maintenance and high factory inventory, the daily shipment volume of the Daqin line in April or 105 mm.

  The coal port moved south, and Qin Port was relocated or stopped.

According to the Erdos Coal Network report, Deputy Minister of Transport He Jianzhong stated at the port meeting that he explicitly opposed the Hebei Province’s approach to Qin Port relocation and coal transfer. If it is true, coal ports will move south or there will be variables.

According to reports, He Jianzhong pointed out that Qin Port as a coal transportation function is a national strategy, and it is required to continue to play an important role as the main coal hub port.

We predict that if the relocation is implemented, the net profit of the company will decrease by 75 million for each 1000-minute diversion of Qingang to Caofeidian Port.

If the coal port moves south, the suspension will help reduce the company’s diversion impact.

At the same time, the acquisition of Tanggang Railway improves the collection and distribution system itself and independence, and may contribute equity in 20193.

5 billion.

  Reduce fees or affect company income.

About 3%, is expected to benefit from accelerated marketization.

During the two sessions, China Railway always stated that the railway promoted tax reduction and fee reduction, and the extension was changed from 10% to 9%. The freight rate of railway freight subsequently decreased and passed to the downstream of the industrial chain in equal amounts.

In addition, starting from April 1, the railway canceled dump truck operation services and reduced 10 miscellaneous fees such as deferred occupancy fees for trucks. It is expected that the cancellation or reduction of some miscellaneous fees will affect the company’s revenue1.


500 million, accounting for 0 of 2018 forecast revenue.

About 3%.

The government work report pointed out that the reform of monopoly fields such as railways will be deepened, and competitive businesses will be fully introduced to the market.
The marketization of railway transportation enterprises is accelerating. In the future, the operation mechanism of the Daqin Railway will be more flexible, and there is room for penetration in cost optimization.

  Risk factors: The demand for thermal coal is less than expected, the imported coal exceeds expectations, and railway reforms are below expectations.

  Earnings forecasts, estimates and investment ratings.

The average daily traffic volume in March was 125.
3 Preliminary, basically in line with expectations.

Considering the impact of maintenance and high power plant inventory, the daily transportation volume of the Daqin Line in April or 105 inches.

We maintain our net profit forecast for 2018-2020 of 145.

200 million / 146.

700 million / 147.

50,000 yuan, the corresponding EPS is 0.



91 yuan.

If the coal port moves to the south and stops, the first channel of the West Coal to East Transport may have an advantage or strengthen.

The beneficiary structure is improved or maintained at full capacity, and the attractiveness of high yield is enhanced.

Maintain “Buy” rating.

Baoxin Software (600845) Company Research: High Deterministic Growth of Steel Information and IDC Two-Wheel Drive

Baoxin Software (600845) Company Research: High Deterministic Growth of Steel Information and IDC Two-Wheel Drive

From the Baosteel system, the development of information and IDC two-wheel drive companies.

The company was formerly a wholly-owned subsidiary formed by the integration of information industry-related assets within Baosteel Group. It has been undertaking the task of providing enterprise informationization to the original Baosteel Group and its related parties. It has developed with Baosteel Group for more than 40 years and promoted domestic steelDevelopment of informatization and industrialization.

Since 2015, the company has used Baosteel’s land, water and electricity resources to vigorously develop the IDC business, and the two-wheel drive company has developed rapidly.

  First-tier cities are facing the status quo of IDC resource funding.

From the demand side, benefiting from the explosive growth of the amount of information and data, industries such as big data and cloud computing continue to be recognized by enterprises and users, resulting in increasing demand for IDC infrastructure by IT companies, Internet companies, and telecommunications operators.

From the perspective of the supply side, the barriers to IDC construction are high: 1) IDC’s pre-construction costs are high and the company’s capital needs are large; 2) Only locations with strong winds and water are conducive to natural cooling; 3) Industrial land and electricity indicators in first-tier cities areScarce resources; 4) Professional-grade IDC services have technical advantages only to have an advantage.

  Baoxin software occupies scarce resources in Shanghai and naturally has IDC construction advantages.

Relying on the resources of Baowu Group Iron and Steel Plant, Baoxin has a natural industrial resource competitive advantage in Shanghai.

The Shanghai regional market has always been an important node in the deployment of national data centers for large customers. At the current stage of the Internet, financial enterprise customer demand is continuously released, and resource demand continues to expand.

The Baoxin Group relies on the shareholder Fangbaowu Group to resolve key constraints such as land, water, and electricity for the construction of IDC computer rooms.

At present, the number of cabinets in Shanghai Phase 4 exceeds 2.

70,000, at the same time the IDC model is also copied to Wuhan and other places.

  The tide of M & A and reorganization in the steel industry has brought a lot of information construction needs.

First, since the second half of 2016, through the continuous advancement of internal supply-side reforms, steel prices have risen significantly, resulting in an improvement in the operating performance of steel companies in 2017, and the ability of the information-based demand-side steel mills to pay more.Encourage the support of M & A and reorganization of iron and steel enterprises, Baosteel’s merger and reorganization of Wuhan Iron and Steel, Maanshan Iron and Steel brings 西安耍耍网 a lot of information transformation needs; third, outside the Baowu system, the company signed a contract with Shougang and other steel plants, won the bid in 20172.

The 700 million project demonstrates Baoxin’s leading position in steel informatization.

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

It is estimated that Baoxin Software’s attributable net profit for 2019-2021 will be 8 respectively.

8.7 billion, 11.

8.9 billion, 13.

3 billion, CAGR is 25.


Considering the overall high prosperity of the industry and the high growth of the company’s main business informatization and IDC business, the target price for 2020 is 40.

07 yuan (corresponding to the company’s 38 times PE in 2020), the first coverage, given a “buy” rating.

  Risk warning: IDC demand risk, Wuhan IDC construction progress is less than expected, steel and other downstream industries informatization demand risk, greatly affected by the operating conditions of Baowu Group.

Anzheng Fashion (603839): The main brand has steadily increased its gift information and consolidated its profits

Anzheng Fashion (603839): The main brand has steadily increased its gift information and consolidated its profits

Core point of view In the first half of 19, the company’s operating income and net profit increased by 49%.

49% and 18.

34%, net profit increased by 30 after non-deduction.

19% (Excluding the influence of Li Shang information in November 18, the revenue of clothing business increased by 1.

1%, profitability 0.

37%), 19Q2 company operating income and net profit increased by 58.

20% vs. 28.

55% (Garment business single-quarter revenue and profit increase by 1.

66% vs. 3.


Online sales are growing rapidly, and new brands are still in the incubation period.

In terms of brands, the revenue of the main brands in the first half increased by 9%.

82%, Yin Mo, An Zheng, Mosak and Fina Chen’s income decreased by 10 respectively.

80%, 10.

98%, 24.

19% and 32.

68%; Lishang Information achieved revenue and profit in the first half of the year3.

64 ppm vs. 0.

4.3 billion.

In terms of channels, the company’s offline revenue decreased by 6 in the first half of the year.

59%, online clothing revenue increased by 40.

91%, partially remedying the possibility of offline growth.

In the first half of the year, the company closed 34 stores to 939, of which 3 were Zizi, 6 were Yin Mo, 4 were at Anzheng, 2 were at Mosak, and 20 were at Fina Chen.

In the first half of the year, the endogenous growth of the main brand still maintained an upward trend. In the future, it will open stores moderately and still have development potential. The new brand has not yet stepped out of the climbing period and needs to be further cultivated and consolidated.

In the first half of the year, the company’s comprehensive gross profit margin decreased by 13.

33pct (increasing the proportion of 青岛夜网 online income, consolidating the information on gift and fashion), the gross margin extension of each brand has been improved to different extents; the expense ratio has dropped by 10 during the period.

63pct, net cash from operating activities increased by 168 per year.

45%, the inventory turnover rate and receivables turnover rate increased.

The acquisition of Lishang Information, shares in the frog prince, and brought new growth points around the layout of the baby industry.

In 18 years, the company successively obtained the agency rights of British luxury brands StellaMcCartney and StellaMcCartney Kids in Greater China, and acquired 70% equity of e-commerce agency Lishang Information), Shares in the top ten domestic children’s clothing brand frog princes, the business further covers online and offline mother and baby surroundings, children’s toys, outdoor sports, children’s clothing, etc., the development of new categories and new formats, is committed to the company’s main business based on clothing,New revenue and profit growth points.

Financial Forecast and Investment Recommendations According to the interim report, we basically maintain our previous profit forecast for the company, and the company’s 2019-2021 earnings are expected to be 0.

91 yuan, 1.

03 yuan and 1.

16 yuan (previous forecast was 0.

90 yuan, 1.

03 yuan and 1.

16 yuan), maintaining the company’s 16 times PE in 2019, corresponding to a target price of 14.

56 yuan, maintaining the company’s “overweight” rating. Risk reminder: the risks of multi-brand operation, inventory risks, and the impact of the decline of e-commerce traffic on large platforms

Zhujiang Beer (002461): Performance in line with expected profitability continues to optimize

Zhujiang Beer (002461): Performance in line with expected profitability continues to optimize

Brief comment on the performance of Zhujiang Beer released a performance report, the company in 2019 to achieve operating income42.

44 trillion, +5 for ten years.

06%; net profit attributable to mother 4.

96 trillion, ten years +35.

23%; budget benefit 0.

22 yuan.

  Operating analysis revenue grew steadily, and structural upgrades led to a rise in both volume and price: the company’s substantial revenue growth5.

06%, achieving steady and progressive growth. It is expected that the core of the company’s revenue growth will still be driven by the beer business, and it is likely that both volume and price will rise.

From the perspective of 武汉夜网论坛 sales volume, it is expected that the company’s beer sales will gradually increase, of which the growth of Zhujiang Pure Health and cans products is the most obvious.The company’s beer ton price increased by 3-5%, exceeding 3,200 yuan.

It is expected that the company’s beer culture industry and other businesses have also achieved considerable growth, and the “dual main business” has helped the company achieve its development.

  The profitability of the beer business continued to improve, and the company gradually realized net profit attributable to its mother.

9.6 billion, an annual growth of 35.

23%, corresponding to a net interest rate of 11.

7%, an increase of 2.

29pct, high in recent years.

It is expected that the company’s operating level and intelligence level will continue to improve. Among them, the three major expense ratios of ton of beer are likely to decline, and production transfer will gradually be optimized from procurement to transportation. At the same time, the company will improve management and operation efficiency and improve risk management and control capabilities through various intelligent systems.
In the long run, the company has achieved remarkable results in improving quality and efficiency. Through deepening marketing reforms, adhering to technological innovation and development, and improving management efficiency, its profitability has been continuously improved.

  Profit improvement has not yet ended, and we look forward to the development of the two main industries. As a regional leading beer company, the company still has potential in regional channel expansion and product upgrades. The product-side ratio is expected to further increase, and the company has reserved 0 degreesFor the series of upgraded products, the trend of both volume and price will continue; the channel side will gradually extend the advantages of the retail side to the catering side, with rich application scenarios; in addition, the company will continue to improve the profitability of weak markets outside the province, and refine the market.

We have long been optimistic that the profitability of the main beer industry will continue to increase under the general trend of upgrading the industrial structure and the company’s direction of improving quality and efficiency. The two main businesses of the beer brewing industry and the beer culture industry will develop together to strengthen the company’s industry competitiveness.

  Earnings forecast We expect the company’s revenue in 19-21 to be 42.



21 ppm, a five-year increase of 5.

1% / 3.

8% / 7.

1%, affected by the epidemic, we lowered the company’s revenue for 20 and 21 years, and the adjusted revenue decreased by 6 compared with the previous.

6% and 8.

3%; net profit attributable to mothers is 4.



24 ppm, an increase of 35 in ten years.

4% / 10.

1% / 14.

2%; EPS are 0.

22 yuan / 0.

25 yuan / 0.

28 yuan; corresponding PE is 31X / 28X / 25X; reduce the land valuation of 4.2 billion US dollars, the current corresponding PE is 26X / 24X / 21X, maintaining the “Buy” rating.
  Risk prompts lifting of ban on restricted stocks, rising raw 青岛夜网 material prices, construction of investment projects not meeting expectations