Jiuzhou Pharmaceutical (603456) 2019Q3 Comment: Third-quarter results improve significantly CDMO business grows rapidly

Jiuzhou Pharmaceutical (603456) 2019Q3 Comment: Third-quarter results improve significantly CDMO business grows rapidly

Event: The company released the third quarter report of 2019, and the company achieved operating income in the first three quarters of 201913.

580,000 yuan, an increase of 7 in ten years.

04%; net profit attributable to mother 1.

3.6 billion, an annual increase of 43.

21%; deduct non-attributed net profit1.

43 ppm, an 18-year increase.


The company achieved operating income in the third quarter of 20195.

00 ppm, an increase 西安耍耍网 of 43 in ten years.

3%; net profit attributable to mother is 0.

33 ‰, an increase of 453% in ten years;

510,000 yuan, an increase of 157% in ten years.

At the same time, the company expects annual net profit for 2019 to increase by 55% -80%.

Performance growth was in line with expectations.

Consecutive orders were confirmed, and the third quarter performance improved significantly: quarterly, the company’s 2019Q3 operating income5.

00 ppm, an increase of 43 in ten years.

3%, net of non-attributed net profit 0.

510,000 yuan, an increase of 157% in ten years.

The growth rate of revenue and net profit attributable to motherhood resumed rapid growth under the turn of the company’s CDMO business.

Due to the delay in the revenue recognition of orders from the CDMO sector, the company’s revenue growth in the second quarter of 2019 has picked up, but it has not yet reflected the high growth of the company’s business volume.

The gradual order starts to recognize revenue from the third quarter, so from the third quarter, the rapid growth of the company’s orders and business volume gradually began to be reflected in revenue and performance.

It is expected that with the continuous increase in the company’s revenue scale and number of projects, the transition between revenue recognition between quarters will gradually change.

With the increase in the proportion of high value-added services such as CDMO business, the company’s profitability has increased: the company adheres to the development strategy of “innovation-driven, CDMO + API dual-track development”.

Scale, the company ‘s high gross profit CDMO business has grown rapidly, and its revenue share has continued to increase. In the API business, the company has continued to enhance the business advantages of high gross profit varieties. The relatively high gross profit margin of the central nervous system represented by carbamazepineRevenue from drugs and non-steroidal anti-inflammatory drugs continues to rise.

Therefore, the company’s profitability continues to increase.

The company’s gross profit margin for the first three quarters of 2019 was 31.

5%, increase by 0 every year.

5pp; net interest rate 9.

9%, an increase of 2 per year.


The CDMO business expands its global strategic layout, and the API business gradually achieves a breakthrough upgrade: In the CDMO business field, the establishment of the company’s US BD team and the establishment of the European grandson company form the basis for the company’s deep cooperation with European and North American multinational pharmaceutical companies.

In addition, the company also expanded its customer base and influence in the United States through the acquisition of PharmAgra Labs.

In the traditional API business, the company ranks at the forefront of the market share of specialty APIs and intermediates of single varieties (including carbamazepine, ketoprofen, glipizide, etc.), and the company has completed diabetesTechnical development of APIs for therapeutic drugs, anti-HIV drugs and non-steroidal anti-inflammatory drugs.

Among them, the production of a case-testing drug for diabetes has been completed, and China-US-Europe DMF delivery has been completed.

The acquisition of the Novartis plant in Suzhou will further upgrade the production and service level, and the cooperation with Novartis will be further upgraded: In September this year, the company signed a “equity acquisition agreement” with Novartis to acquire Novartis Suzhou’s divestiture technology and drug development assets.

At the same time, with Novartis on the content of a new order, the company will provide Novartis through the acquisition of Suzhou Novartis three kinds of innovative drugs (anti-heart failure, diabetes and leukemia products) APIs or intermediates.

Among them, the innovative drugs against heart failure and hypertension are in the fast-volume phase.

It is expected that the order amount between the company and Novartis will increase, and subsequently with the volume of innovative drugs, the order amount will continue to rise. Investment suggestion: Buy-A investment rating, 6-month target price of 16.

00 yuan.

We expect the company’s revenue growth rate to be 10 in 2019-2021.

8%, 16.

8%, 18.

6%, net profit growth rate was 67.

8%, 28.

3%, 30.

4%, outstanding growth; maintain Buy-A investment rating, 6-month target price is 16.

00 yuan, equivalent to 38 times the dynamic price-earnings ratio 合肥夜网 in 2020.

Risk reminder: The order quantity growth is not up to expectations, the intensified market competition leads to a decline in order prices, the industry’s prosperity is less than expected, and the company’s business expansion is less than expected, etc.

Sany Heavy Industry (600031): Discussion on the Impact of the Acquisition of Auto Finance Companies

Sany Heavy Industry (600031): Discussion on the Impact of the Acquisition of Auto Finance Companies

Core view Group assets Sany Auto Finance intends to inject into listed companies.

In this announcement, it is planned to purchase Sany Auto Finance Co., Ltd., to which the controlling shareholder belongs 91.

43% equity, corresponding to an assessed value of 42.

21 trillion, the company negotiated with the Sany Group and reached an intent, agreeing that the transaction price was 39.

80ppm is adjusted to RMB33.

800 million US dollars, the transaction price decreased by 600 million US dollars.

SANY Auto Finance Co., Ltd. obtained a financial license in 2010 and is one of 25 auto finance companies in the country. It mainly 杭州夜网论坛 provides financial services to the construction machinery industry.

  Sany Auto Finance Company’s asset quality is in good condition.

According to the company’s announcement in response to the Exchange’s inquiry letter, the core business of Sany Auto Finance Company mainly includes three categories: (1) wholesale loans to dealers; (2) mortgage loans to retail customers; (3) financial leases to retail customers, beforeThe two categories account for a higher proportion.

The profit model is mainly based on the spread between the cost of funds and the loan interest rate.

  At present, the assets of Sany Auto Finance Company are in good condition, and the overdue rate is only 0.

92%, adequate provisions, no loss loans, and good asset quality.

  Combined with overseas benchmarking company Carter Finance, the “equipment manufacturing + equipment finance” model has had a long-term impact.

From Caterpillar’s long-term development experience, the business model that combines equipment manufacturing and finance has become mainstream.

Carter’s revenue in 2018 as a percentage of total operating income was 5.

8%, becoming an important point of profit contribution.

At the same time, Carter Finance also played an important role in the implementation of Carter’s integrated business. After the injection of SANY Auto Finance, it will consolidate the company’s main business and promote the internationalization process.

  In 19-21, the EPS was 1.



76 yuan / share.

The corresponding estimated PE level is 12.

2x / 10.

3x / 9.

4 times.

The current industry comparable company has a PE of 13 in 20 years.

8x, comparable OEM average PE estimated level is 8.

8 times.

The company is a leader in domestic construction machinery. Its market share continues to increase, and its overseas business continues to expand. We give the company 12 times a reasonable PE for 20 years, and the company’s reasonable value is estimated to be 19.

36 yuan / share, continue to give a “buy” rating.

  Risk reminders: increased demand for infrastructure and real estate investment; fierce competition leading to a decline in gross profit margin; price competition leading to an increase in the risk of accounts receivable; risk of failure to pass approval by shareholders’ meetings and regulators

Poly Real Estate (600048): Really Leading Through the Cycle

Poly Real Estate (600048): Really Leading Through the Cycle

Through the real leader of the cycle, the first coverage was given a “Buy” rating.

We estimate that the company’s operating income from 2019 to 2021 will be 267.7 billion US dollars / 356.1 billion US dollars / 61.3 billion US dollars, net profit attributable to mothers will be 28 billion US dollars / 35.9 billion US dollars / 42.4 billion US dollars, and EPS is 2.

36 yuan / 3.

02 yuan / 3.

56 yuan, the current corresponding PE is 5.

6 times / 4.

4x / 3.

7 times, covering 17 for the first time.

7 yuan (corresponding to 7.

5 times PE).

The industry’s small cycles have declined, and structural opportunities have come from increasing concentration 杭州桑拿网 through the cycles.

Compared to medium-sized housing companies, the company’s leverage level is significantly higher, and the net replacement and restructuring in H1 2019 is 86%, which is lower than the average of mainstream housing companies. Compared with Biwanheng, the company is equivalent to 56%, 67% and 73% of Biwanheng in 2018.There are 131 cities in the layout, far lower than 269 in Country Garden and 228 in Evergrande.

The unsold value is rich, the structure is reasonable, the construction is active, and the sales are expected.

The value of goods is still rich, and the coverage ratio of saleable value to the previous year and this year reached 3.

1 and 2.


In terms of structure, the value of first- and second-tier goods accounts for about 70%.

In terms of delivery, this year’s construction is expected 武汉夜网论坛 to reach 54 million square meters, a year-on-year increase of 23%, which strongly promotes the release of the company’s value.

The resources to be settled are sufficient, the quality is high, the maturity is high, and the peak of performance is coming.

In terms of volume, the annual advance of accounts received increased by 24.

In terms of quality, the gross profit margin is expected to remain above 32% in the short term, and the profit and loss ratio of minority shareholders is expected to drop to about 25%.

The leverage is reasonable, and the financing advantage is even more valuable.

The company’s leverage has declined steadily, and the net rejection rate has dropped by 2.

6 averages, currently lower than most mainstream real estate companies in A shares.

The financing advantage is obvious, and the comprehensive cost of carrying interest-bearing debt is 4.

99%, the cost of interest-bearing debt is significantly lower than the industry average. Against the background of the overall tightening of financing, the financing advantage has gradually improved and turned into an operating advantage.

The dividend yield is close to the company’s bond issuance, and the listing of properties promotes the enhancement of comprehensive strength.

Our recovery company’s 2019 yield will reach 5.

06%, higher than the average coupon rate of bonds issued by the company4.


The successful listing of Poly Property is expected to further enhance the comprehensive strength of the parent company.

Risk warning: the project completion and settlement progress are not as expected; the settlement gross margin is not as expected; the company’s sales are not as expected; the financing exceeds expectations and tightens.

Can the central bank buy stocks?

Zhou Luohua of Chongyang Institute of Finance

Can the central bank buy stocks?
Zhou Luohua of Chongyang Institute of Finance

Can the central bank buy stocks?
Zhou Luohua: The world has changed, and you can’t be a cocoon. Zhou Luohua. During the financial crisis in 2008, the Fed used the method of printing money to buy government bonds, but it reduced the interest rates and volatility of long-term government bonds to historical lows.
This is equivalent to “artificially eliminating the expected return on long US Treasury bonds” and at the same time “artificially eliminating the hidden risk of short US Treasury bonds”.
Zhou Luohua suggested that the People ‘s Bank of China put the stock purchase into the toolbox as a policy tool, which is not only in line with modern finance, but also in line with the practice of central banks in various countries.
  图片来源:全景视觉  作者 | 周洛华  最近一段时间,有关央行购买股票的讨论持续升温,讨论的焦点有两个,一是央行在法律上是否可以购买股票;二是在金融学上央行是否应该购买股票.
I think the discussions are outdated and the world has changed. It’s time to look up at the outside world.
  Miller and Modigliani won the Nobel Prize in Economics in 1991.
Their findings reveal that in the capital market, financing costs are determined by the risks of the investment target; and artificially regulating interest rates does not change the return on an investment.
This means that in times of crisis, the central bank’s interest rate cuts are ineffective.
Efforts should be made on the asset side to make investment targets have investment value (such as tax reductions, reform of corporate governance and relaxation of mergers and acquisitions regulations) in order to restore market confidence; merely reducing risk-free interest rates cannot make assets such as stocks stand out from investment value.
  The “Miller-Modigliani” theorem (M & M theorem for short) sounds simple, but it is not easy to practice, because people are easily trapped in the ideological trap of “interest is the cost of funds”.
This trap is like a cliff with many failed bankers (including the central bank governor) lying underneath.
Violations of Miller and Modigliani’s theorem led to the failure of some central banks to respond to the 1997 Southeast Asian financial crisis.
  In 1997, when the Southeast Asian financial crisis broke out, hedge funds represented by Soros first took out a dollar and mortgaged it to local banks in Southeast Asia, then obtained local currency loans from local banks, and then threw this local currency in the local foreign exchange market.Converted into U.S. dollars, and then mortgaged the U.S. dollars to local banks, lent out the local currency again, and threw them in the foreign exchange market.
  After repeating the operation several times, Soros can short the currencies of these countries by many times.
Think of Soros as a company. Let’s take a look at his balance sheet. His assets are in US dollars. The financing he raises to obtain this asset comes from the local currency loan of Southeast Asian banks.
So long as Southeast Asian countries ‘currencies depreciate against the US dollar (increasing assets and decreasing liabilities), Soros can make high profits.
  In order to deal with Soros’s offensive, the central banks of Southeast Asian countries have adopted a policy that was professed by Professor Miller as “fueling fire”: raising interest rates in local currencies.
Central banks in these countries believe that by raising interest rates, speculators who receive domestic currency loans from their banks will bear higher interest costs, which can combat speculation and prevent speculators from further using their currencies to make more US dollars and curb them.Depreciation of the local currency against the US dollar.
Unfortunately, after the promulgation of this policy, the currencies of these countries have depreciated at a faster rate, and finally a crisis has irreversibly formed.
  Professor Miller pointed out that raising interest rates artificially increases the financing cost of speculators, and according to M & M theorem, the investment value of an asset (USD) and its financing cost (such as Thai baht or Indonesian rupiah loan interest rate)Nothing.
Therefore, raising the interest rate on Thai baht and increasing the cost of speculators cannot stop speculators from optimistic about the US dollar.
Take Thailand as an example. At that time, the central bank raised the overnight lending rate to even 15%.
However, speculators are still optimistic about the US dollar, and continue to borrow Thai baht at the spot, and exchange it for US dollars, and the Thai baht has depreciated all the way.
  Professor Miller said solemnly at the time, “The root cause of this crisis is that the central bankers of Southeast Asian countries have graduated from Harvard University. If they were my students, this crisis could have been avoided.of.
“If we analyze the decision of the Central Bank of Thailand at the time according to M & M theorem, we will find that when the overnight lending rate of a country is raised to such a high level, it is difficult to imagine that the state of the country’s economy can make companies achieve more than 15%.To repay the bank loan; if the bank cannot recover the principal and interest from the enterprise at an annual rate of 15%, it will be difficult to cash out the deposit interest to the depositor; the central bank is a non-operating institution and it is impossible to grow at 15% per yearTo create wealth.
Therefore, there are sufficient reasons to predict that the country ‘s central bank can only fulfill such a high interest rate commitment by “printing money”. Once the market believes that the country ‘s central bank will print more banknotes, the market ‘s power will surely furtherSuppressing the value of the country’s currency, so for speculators like Soros, their optimistic assets (USD) will inevitably appreciate further relative to the Thai baht.
Therefore, the higher the cost for speculators to integrate into the Thai baht, the smaller the risk of betting against the depreciation of the Thai baht, and the greater the depreciation of the Thai baht against the US dollar.
In the crisis, the central banks of Southeast Asian countries have adopted the method of raising interest rates, which not only violates M & M’s theorem, 深圳桑拿网 but also completes speculators.
  M & M’s theorem tells us that financing costs and the profitability of investment objects are irrelevant.
However, we always seem to ignore the wisdom taught by the master in practice.
The vast majority of people are influenced by the idea of marginal cost and marginal income in economics, and instinctively understand interest rates as a kind of marginal cost. In fact, this is a wrong association.
It’s not difficult to understand M & M’s theorem, but behind it is courage, not wisdom.
  In 1997, Nobel economists awarded Professor Schultz, a survivor of the Black Schultz option pricing model.
Their discovery actually includes two parts. The first part is of course the most famous option pricing method. The second part is often overlooked by the parity relationship between volatility and interest rates.
  Delman, Black’s assistant at Goldman Sachs, later recalled that interest rates and volatility are actually the same thing.Just like gasoline is implanted into two devices, you can fill gasoline in motorcycles, and you can also fill gasoline in lawn mowers. The core of the so-called compensation pricing method and the national debt interest rate model are two setsIt ‘s just a device. It ‘s filled with gasoline, but it looks like it ‘s two different things.

It is very difficult to polish this, because everyone’s thinking is habitually split into assets and debts. Some people naturally think that the interest rate is the attribute of the asset side (left column), and the interest rate is the attribute of the liability side (right column).

  Actually, the domestic commercial banks also knew about this before. I remember that a certain bank had launched a wealth management product and an interest payment reserve plan.

In fact, the gold deposited in the bank has almost no supplementary income, but this wealth management opportunity becomes the income you deposit in gold. The principle of this product is to convert the conversion rate contained in gold income into fixed income of wealth management products.The idea is the parity relationship between “volatility and interest rates.”

  During the financial crisis in 2008, the Fed mastered this principle. They used the method of printing money to buy Treasury bonds (it seems that they did not buy stocks, but they were not), but they reduced the interest rates and volatility of long-term Treasury bonds to historical lows.I remember that the conversion rate of US 30-year Treasury bonds was only 4% at that time, and the conversion rates of the US 1-year Treasury bonds were around 20%, which was equivalent to “artificially eliminating the expected return on long US Treasury bonds.”At the same time, “the hidden risk of shorting U.S. Treasury bonds was artificially eliminated.” Once this risk was artificially eliminated, it opened the door to a trading strategy: “Short-term securities shorting U.S. Treasuries, financing long US stocks.”

The Fed’s operation is not actually to reduce US interest rates, but to eliminate the risk of long US stocks.

After telling all the institutions, you can rest assured that you can go long on stocks, even if the stock price fluctuates. It is not a risk to short the US debt in the other side of the paired transaction (pairing transaction). You can continue to finance long US stocks and wait for a rebound.

  You say black people can’t buy stocks directly in the market?

People have already entered the market to eliminate (at least artificially reduce) the risk of buying stocks. Isn’t this financially equivalent to going long?

The Miller-Modigliani theorem makes us understand the integration of investment and financing, and the Black Schultz formula makes us understand the integration of interest rates and volatility.

And these two findings have each gone through the actual test of the financial crisis and proved to be correct!

  When air-space integration operations have become the main means of military struggle in the world, if at this moment, a country’s conspirators are still proudly claiming that their country should defend the international treaty on the armor thickness of fearless battleships.

That is self-defeating martial arts, there are more policy tools in other people ‘s toolboxes, and more advanced weapons and ammunition in other people ‘s arsenals, but we stick to a treaty that others have abandoned and refuse to introduce new weapons.It is deplorable.

  The view that changing the market to buy stocks will lead to moral hazard and undermine the principles of the market economy is actually the view of fundamentalists. They believe that they should not buy stocks, and they also think that there should be no state-owned shares in the stock market.With major shareholders, these are moral hazards.

Oh my God!

Why do our scholars and experts support this idea so pedantically?

This big discussion about defending the principles of the market economy also reminds me of an Indian friend I met many years ago when he proudly declared that he was speaking authentic Victorian English (for example, when speaking the word “fire”,He would not use the usual “fire”, or a more classic and refined word (“flamation”), and the American students present laughed.

  I suggest that China gradually add stock purchases to the market as a policy tool in our toolbox. This is not only in line with modern financial principles, but also in line with the practices of various countries.

“When you go to the conference room with a bazooka, you don’t even need to pull out a small pistol.” Bernanke became this experience during the last financial crisis.

When we have the most advanced weapons in our toolbox, the market is more stable, and it is less prone to panic and change.

  (The author is the deputy dean of the Chongyang Institute of Finance of Renmin University of China) In the face of the question of whether it is possible to buy stocks gradually, Sheng Songchengcheng, executive vice president of the CEIBS Lujiazui Institute of International Finance and former director of the Department of Investigation and Statistics of the People’s Bank of China, opposedOpinion, once wrote the article “The reasons for directly buying stocks are not valid”, you can refer to it.

  This content is authorized by the author to be published by Economic Observer Network.

Mingyang Intelligent (601615): 1.7 billion convertible bonds approved to consolidate industry leading advantages

Mingyang Intelligent (601615): 1.7 billion convertible bonds approved to consolidate industry leading advantages

Event: The company recently issued an announcement on the approval of the CSRC for the public issue of convertible corporate bonds. The company intends to publicly issue convertible corporate bonds with a total face value of 1.7 billion for a period of 6 years.

Convertible bonds were approved, consolidating the industry’s leading position.

The annual volume of wind power tenders in 2019 exceeded expectations, the price of the entire unit continued to increase, and the supply of some parts was tight. The installed capacity in 2020 is expected to usher in a record high. Offshore wind power and large base projects will become the most important development direction of wind power.

At present, the company has multiple wind farm projects under construction in the eastern and central regions. The three wind farm projects funded by convertible bonds are concentrated in Inner Mongolia. They have good regional wind energy resources, convenient transportation and construction conditions, and networking conditions.Location advantages such as convenience and reliability are expected to further increase the company’s market share in the field of wind farm operation.Larger single-unit wind turbines provide a strong guarantee for the company’s offshore large wind turbine strategy. The advanced technology can provide support for the company’s continued maintenance of the offshore wind power market share.

In addition, 2.

The 9 trillion supplementary working capital will help improve the company’s ability to continue operations and the use of funds.

We believe that if the fundraising projects can be successfully implemented, the company’s core competitiveness will be strengthened, further consolidating its leading position in the industry.

The order capacity has increased rapidly and has great potential.

The company has developed and consolidated the main stable customer groups of the “Big Five” and “Four Small” conventional power generation groups, and has continued to add large quality customers.

According to the data from the three quarterly reports, the company’s unit orders increased by about 6GW, of which the offshore wind turbine orders exceeded 2GW, and the large wind turbine orders (single unit power 3).

0MW and above) capacity accounted for more than 95%, achieving market leadership in large wind turbine orders.

The company focuses on building advantageous business segments of offshore wind power projects, and has accumulated rich experience in offshore wind technology, operation and design.

As of the end of the third quarter, the company’s offshore wind turbine orders on hand have reached more than 4GW, of which 5.

The 5MW budget accounts for over 85%.

Wind farm resources operate well.

The company’s wind farm dynamic development management and transfer model has made considerable gains.

At the same time, the company will continue to carry out EPC business, in order to realize the “fund pool” for unified management and dispatch of funds for different projects, remove obstacles for subsequent business model innovation, transform resources, and realize the long-term value of the project into business profits.
The company actively develops and develops new energy power generation investments such as its own wind direction. It is expected that the installed capacity of grid-connected equity will reach 1GW by the end of the year, 北京桑拿洗浴保健 and the project revenue is considerable.

Investment suggestion: As a leading company in wind power, the company is leading the industry in wind turbine manufacturing and wind farm operations, especially in high-power wind turbines. It has obvious technological advantages and transforms the development of the wind power industry. The large-scale wind turbine has become a trend that can improve power generation efficiency and promoteThe wind power industry goes online at parity.

We believe that offshore wind power will be installed in the next 2-3 years. In the next 10 years, offshore wind power will have a high degree of prosperity. The main battlefield of China’s wind power will turn to the sea. The company has a first-mover advantage in offshore wind power.

If the raised capital investment project can be successfully 杭州夜网论坛 implemented, the company’s industry leading position is expected to be further consolidated.

It is expected that the company’s net profit for 2019-2021 will be 6.

85, 10.

47 and 12.

930,000 yuan, corresponding to EPS0.

50, 0.

76 and 0.

94 yuan / share, corresponding to PE 25, 16 and 13 times, given a “buy” rating.

Risk reminders: 1. Policy risks.

2. Relatively concentrated risk of customers.

3. Changes in business structure affect business risks.

4. Financial risks.

Qibin Group (601636) 2019 Interim Report Comments: Profits are under pressure to accelerate the industrial chain upgrade

Qibin Group (601636) 2019 Interim Report Comments: Profits are under pressure to accelerate the industrial chain upgrade

Revenue growth 7.

86%, net profit attributable to mother increased by -20.

91% of 2019H1 companies achieved operating income of 40.

66 ppm, a ten-year increase of 7.

86%, net profit attributable to mothers5.

1.8 billion, an increase of -20 a year.

91%, reducing EPS to 0.

1951 yuan / share, of which Q2 achieved operating income of 22 in a single quarter.

3.1 billion, an annual increase of 5.

65%, net profit attributable to mother 3.

09 billion, a growth of -7 in ten years.

32%, a 27% increase over the previous Q1.

63 units.

The decline in performance was mainly due to the decline in glass prices in the first half of the year, the decline in gross profit due to the increase in the price of raw fuels, and the improvement in distribution income.

  Profits have been under pressure, and refined management has achieved results. In the first half of 2019, the company’s glass sales volume was 54.07 million heavy cases, a significant increase of 12 significantly.

34%, mainly due to the official commercial operation of the Pizhou Photovoltaic Photovoltaic Glass Project.

We estimate that the company’s box revenue in the first half of the year was 75.

2 yuan, a decrease of 3 from the first half of last year.

12 yuan, mainly due to the continuous decline in the national glass price in the first half; the box cost was 55.

37 yuan, a slight increase in the past.

64 yuan, mainly due to the rise in the price of raw materials; gross profit of the box and net profit of the box reached 19 respectively.

83 yuan and 9.

59 yuan, a decrease of 4 each year.

76 yuan and 4.

03 yuan.

The report summarizes that the company’s refined management has made significant progress. Through comprehensive tapping of potential and efficiency, rationalization of the management system, PBC performance management, lean production management and other means, the company’s management expense ratio decreased in the first half of the year.

44 up to 4.

68%, the expense ratio during the period is reduced by 2.

01 points to 7.


The report reduces the company’s increased R & D investment and enhances its future development momentum, with R & D expenses reaching 1.

7.1 billion (+52.


  Deep processing continues to advance, accelerating the upgrading of the industrial chain. In order to reduce the impact of glass price fluctuations on profitability, the company has gradually carried out technical reforms to its production lines in recent years, gradually 深圳桑拿网 expanded its efforts to promote deep processing business, and accelerated the upgrading of the industrial chain.

Since the first half of the year, the company’s Yinzhou Photovoltaic Project was officially put into commercial operation. In late July, the Liling Electronic Glass Project was ignited. After the baking kiln is completed, it will enter the joint commissioning phase.The company’s mining industry has also successfully delisted the mining right of the Shibapo mine in Pukou Town, Liling City, and the upstream and downstream of the industrial chain have been continuously improved and developed.

  The undervalued glass leader has historically long-term investment value. Maintaining the “Buy” rating until the current glass industry is about to enter the peak season. National price increases have been started. At 四川耍耍网 the same time, the continuous decline in soda ash prices has reduced corporate pressure. If the completion of the second half of the year improves, or production is limitedThe cold repair production line is implemented as scheduled, and the industry can be rebalanced. The company, as a leader in the glass industry, is currently estimated to have low safety and strong EPS. It is expected that the EPS in 19-21 will be 0.


50/0.58 yuan per share, corresponding to PE of 9.



5x, maintain “Buy” rating.

  Risk warning: Real estate sales are less than expected; raw material prices rise more than expected;

Jingwang Electronics (603228): After a year, we will promote fair incentives and gradually cut into high-end circuits such as communications.

Jingwang Electronics (603228): After a year, we will promote fair incentives and gradually cut into high-end circuits such as communications.

After a year, we will promote fair incentives to promote the rationalization of ideas and benefits in the new period. At 天津夜网 the same time, both software and hard boards will carry out business upgrades and layout growth.

Estimated net profit attributable to mothers from 2019 to 2021.



800 million, corresponding to EPS 1.



13 yuan, corresponding to the current total PE is 30.



8 times, maintaining “Strongly Recommended-A”, with a target price of 52.

0 yuan.

  Promoting fair incentives after a year is expected to smooth out the thinking and interests of the new period.

  On December 6, the number of shares to be granted to 169 core technical and business personnel was announced, accounting for approximately the company’s share capital.

33%, the incentive involved is relative to the 2018 distribution incentive coefficient.

The condition for fully unlocking performance assessment is a 20% compound growth rate of profits in 2020-2023, and the estimated additional amortization expenses for 2019-2023 are 441, 6271, 3635, 2278, and 9.45 million yuan.

Equity incentives are conducive to the company’s performance upgrade and development. The new period of extended production bases has once again stimulated the enthusiasm of core employees at the business and technical levels, and hastened the development of bases such as Zhuhai and maintained the company’s long-term competitiveness.The core backbones cultivated at the grassroots level, or subsequently joined, gradually become the company’s main business force. Distribution and incentives are conducive to maintaining the stability of personnel for a long time, maintaining Jingwang’s competitive advantage over other companies, and establishing a shared corporate culture; ToyamaConsolidation temporarily dragged down profits, and the fourth quarter and subsequent plans have gradually improved.

  Preliminary estimates for the third quarter quarter include hard board revenues of 3.0-3.1 billion and soft board revenues of 1.5-1.6 billion. Simultaneous expansion of soft and hard board production and customer introduction will bring continuous growth.

In terms of profit, due to the termination of the Toyama Business Unit (win-win) in the first three quarters of about 88 million, Q3’s single quarter reduction of approximately 22.5 million has an impact on profits, and the overall competition in the Q3 flexible board market (mainly domestic-made) has generated some price pressure.As well as the ramp-up of Jiangxi’s second phase of production expansion (currently producing 150,000 square meters per month after the introduction of Longchuan transfer order), the price of copper clad laminates increased slightly. Employee salary adjustments (administrative expenses) began in June, and 18 years of distribution incentives (single quarter)(Approximately 12 million) and so on have an impact on profits.

We believe that Toyama’s expectations are mainly due to the phase-out of equipment that is not suitable for Jingwang’s business in the early stage, new purchases and break-ins, and temporary losses such as personnel recruitment, downsizing, and training, which gradually gradually entered the right track.

The company’s annual internal revenue is increasing quarter by quarter, and Q4 revenue is expected to increase steadily from the previous quarter. With the industry demand gradually coming out of the trough, it will continue to digest its production capacity next year; the combination of soft and hard boards will increase its business upgrade layout.

  At present, the company is in the stage of business upgrade. In terms of communication boards, it is expected that Huawei will come from Huawei in 19 years. ZTE’s revenue will increase and it has successfully cut into high-level markets such as RF motherboards with high-level barriers. Its performance in the recent bidding of communications customers is also value-added.The leader of the scale of the enterprise, the revenue growth of this part is expected to double next year. Following the improvement of good efficiency, Zhuhai high-rise board plant will gradually increase its production.

In terms of auto plates, the incremental indicators from larger customers and new customers will also show significant growth next year (from expansion, industry upgrade demand rather than the expected rebound in economic prosperity).

In terms of soft boards, the company gradually cuts into the core Android phone customer direct supply system, and will then be more involved in the production of new product proofs and system board numbers. At present, the unit price of soft board products is in a state of increase from the previous month. After a win-win situation, good efficiency will be achieved.The 18-year level is restored, and long-term is also expected to strive to enter more advanced customers; investment advice: optimistic about the long-term value, maintain the highly recommended -A investment rating.

  In general, we believe that cost factors such as increasing incentive costs next year, taking into account the increase in communications business revenue, a win-win turnaround, a moderate recovery in the prosperity of the digestion, a rebound in gross profit margin and other factors, revenue growth has been maintained, and net profit growth has advanced rapidly.

  In 2019, if the expansion of the Toyama Division is added back, and the operational impact of the integration on the company as a whole is considered, the company’s performance 杭州桑拿网 in 2019 in the industry’s overall demand suppression is not easy.

The company is a company with both product upgrade space and refined management attributes. It has long been concerned about the value forecast of 2019-2021 revenues of 6.23 billion.



800 million, corresponding to EPS 1.



13 yuan, corresponding to the current total PE is 30.



8 times, maintaining “Strongly Recommended-A”, with a target price of 52.

0 yuan.

  Risk warning: industry demand is lower than expected, customer development exceeds expectations, and competition is intensifying

Longjing Environmental (600388) 2019 Interim Report Review: Non-electricity Business Drives Steady Growth in Non-Gas Business Breakthrough

Longjing Environmental (600388) 2019 Interim Report Review: Non-electricity Business Drives Steady Growth in Non-Gas Business Breakthrough
Event: Longjing Environmental (600388) released its semi-annual report for 2019 and achieved operating income44.$ 3.8 billion, an increase of 36 per year.87%; net profit attributable to mother 2.7.7 billion, an annual increase of 10.49%; net profit after deduction 24.4 billion, an annual increase of 15.twenty one%. Opinion: Gross profit margin, the growth rate of net profit is lower than the growth rate of income, and cash flow is reduced.The company is a leading enterprise in the field of domestic air pollution control. Its main business is dust removal, desulfurization and denitrification, electrical control devices, material transportation, etc., and restructuring of power, building materials, metallurgy, chemical, light industry and other industries.The 2019H1 performance maintained a steady growth trend, and the increase in revenue was extended, mainly due to the increase in completed acceptance projects.Gross profit margin 21.56%, a decrease of 3 per year.85 averages.Sales expenses, management expenses (including research and development expenses), and financial expenses increased by 25, respectively.58%, 5.3%, 264.38%, due to effective management cost control, period expenses 14.06%, down 2 every year.07 single.Asset-liability ratio is still high, reaching 72.56%.Net operating cash flow-6.6.1 billion, a decrease of 139 per year.59% was mainly due to the increase in performance bond and purchase of goods and cash payment for receiving labor services. In the first half of the year, about 70% of non-electric orders were added, which was the main source of performance growth.The traditional coal-fired flue gas treatment market has shrunk sharply, and the company’s focus has shifted to non-electricity.The self-developed ultra-low emission technology of dry desulfurization steel has been put into operation on a large scale.The high-temperature ultra-clean electric bag composite dust removal technology 厦门夜网 has reached the international advanced level and is expected to become another important technology for non-electricity flue gas treatment.New orders 73 in the first half of 2019.1 ppm, an increase of 9 per year.1%, of which plant orders are 23.7.7 billion yuan, 49 non-power orders.3.3 billion yuan, the proportion of new non-electricity orders accounted for 67.5%; total orders on hand at the end of the period totaled 19.4 billion, an increase of 12 from the end of the previous year.79%, of which 90 were plant orders.8.9 billion yuan, 103 non-electric orders.1.1 billion yuan, non-electricity orders accounted for 53.15%. The non-gas environmental protection business has gradually started to enrich the company’s business layout.In the report period, the company won the bid for the comprehensive renovation project of abandoned 重庆耍耍网 mines with an amount exceeding one million US dollars. VOCs management, water treatment, sludge drying and other businesses continued to make breakthroughs.Acquired Dechang Environmental 99 for cash.28% of shares, entered the waste incineration power generation asset operation field. The company intends to enrich its business layout and promote the company’s development of an integrated environmental protection enterprise from a single equipment engineering service provider to an operation service provider plus a equipment engineering service provider. Focus on implementing employee stock ownership plans.The company repurchased a total of 6.65 million shares in 2018 and has been transferred to the sixth phase of the employee stock ownership plan.As of now, the third, fourth, fifth, and sixth employee shareholding plans hold a total of 2082 shares.880,000 shares, accounting for 1 of the total share capital.94%. Investment advice: Maintain a cautious recommendation level.It is expected that the EPS for 2019-2020 will be 0.84 yuan, 0.94 yuan, corresponding to PE is 14 times, 12 times, maintaining a cautious recommendation level. risk warning.Orders landed lower than expected, business expansion was lower than expected, and market competition intensified. Gross margin declined.

Lao Fengxiang (600612): Q3 growth further accelerates the growth of gold prices to maintain a high level, leading to full performance flexibility

Lao Fengxiang (600612): Q3 growth further accelerates the growth of gold prices to maintain a high level, leading to full performance flexibility
Key investment events: The company announced three quarterly reports, and Q1-Q3 revenues increased by 15.4% to 421.300 million, net profit attributable to mother increased by 18.0% to 11.The revenue and net profit attributable to mothers reached 91% and 90% of the annual target set by the board of directors respectively. Specifically for Q3, the company’s revenue 杭州桑拿网 increased by 25% to 140.200 million, net profit attributable to mother increased by 26% to 4.27 ppm, growth continues to accelerate on the basis of Q2. In 3Q19, the price of gold surged and fell, but it was still at a high level compared with the same period of last year. The single-quarter revenue growth of the gold jewelry business reached 23%.As of 19Q3, the company ‘s gold and jewelry business marketing outlets had a net increase of 201 from the early stage to 3,722; in contrast, the price of gold surged to 360 yuan / gram at the beginning of September. Although it fell to the current level of 340 yuan / gram, it was still higher than last year.In the third quarter, the level of 270 yuan / gram increased significantly, so the gold sales volume in the single quarter contracted by two.22% to 3.810,000 kg, gold jewelry as a 杭州夜生活网 whole has increased by 22 per year.From 6% to 115 ppm; in terms of gross profit margin, looking at the company ‘s history, as 80% of the jewellery-related revenue in the statement comes from gold jewelry, during the period when the gold price went up, such as 2007-2009 and 2016, the company ‘s jewelry business gross profit margin remained atRelatively high levels (see photo), the rapid rise in gold prices since 19Q2 has also improved the profitability of the company’s jewelry business, and the gross profit margin of the gold and jewelry business in Q1-Q3 increased.85pp to 11.55%, Q3 single quarter gross margin rose even more.5p to 14.65%. In terms of financial performance, Q3 has further accelerated its growth compared to Q2.Q3 single quarter revenue increased by 24.6% to 140.2 ppm, while gross margin rose 0 in ten years.5pp to 9.0%, driving a 32% increase in gross profit each year, so although the expense ratio slightly increased during the period, the net investment loss also reached 1.4.5 billion (related to the increase in the price of gold during the rolling gold lease), but operating profit still increased by 25%.8% to 7.43 trillion, the constant net profit of the mother increased by 26.3% to 4.2.7 billion.Looking at the turnover, Q3 accounts receivable increased for 21 years.9% to 40.8.3 billion, with an inventory of more than 23.1% to 81.58 trillion, the increase is less than the increase in revenue, the turnover is generally stable. Earnings forecast and investment rating: As an established gold jewellery leader, Lao Fengxiang has been deposited for more than 170 years. Since its listing, its performance has continued to be better than the industry average. Under the background of rising gold prices, the performance elasticity has gradually emerged, and it continues to be bullish.Net profit grows by 19.8% / 12.5% / 10.4% to 14.4/16.2/17.90,000 yuan, corresponding to PE19 / 17 / 15X, maintain “Buy” rating. Risk warning: unexpected fluctuations in gold prices, cold retail environment

Lier Chemical (002258) Company Dynamic Comment: Price of glufosinate is dragging performance and optimistic about high future growth

Lier Chemical (002258) Company Dynamic Comment: Price of glufosinate is dragging performance and optimistic about high future growth

Incident Lier Chemical released its 2019 semi-annual report.

At the core of the report, the company achieved revenue of 20.

53 ppm, an increase of 12 in ten years.

68%; Net profit attributable to shareholders of listed companies.

60,000 yuan, 38 compared with the same period last year.

8%; basic return is 0.

3 yuan, 0 for the same period last year.

5 yuan.

The company expects the net profit attributable to shareholders of listed companies from January to September 20191.

67 ppm to 2.

9.3 billion, a year-on-year decrease of 60% to 30%.

Opinions The price of glufosinate increased sharply, which obviously dragged down the company’s performance.

In the first half of this year, the company’s performance fell sharply, mainly due to intensified competition in the company’s main product, glufosinate, and its price fell sharply.

The price of glufosinate from the initial 16.

50,000 yuan / ton substantially reached 12 in July.

25 million / ton, the downward trend is difficult to stop.

The reshuffle of the industry is imminent, and the grass cation leader has added stability.

Driven by “replacement of paraquat” and “glyphosate compounding” in recent years, the demand for glufosinate has continued to increase, and the industry’s production capacity has increased simultaneously, leading to a significant decline in glufosinate prices.

The downward price will help increase the market demand for glufosinate, and will also accelerate the withdrawal of high-cost production capacity.

The company’s advanced production technology and obvious cost advantages are expected to further consolidate the industry leader’s segmentation.

Multi-point blossoming of planning projects will help high growth in the future.

The Guang’an project has gradually landed. One ton of glufosinate cation is under construction, and 3,000 tons have already been put into production. The 1,000 ton fluconazole project and the 1,000 ton fluprostil project are under construction. According to company estimates, it is expected to contribute to net profit after commissioning.

2 ppm / year.

In addition, the company merged project reserves in Mianyang and Jingzhou with prospects: 1) In July 2018, the company signed an investment agreement with the Management Committee of Mianyang Economic and Technological Development Zone, planning to invest 1.5 billion US dollars to build 5 alternative biological and new material intermediates.Production line and supporting facilities construction projects; 2) In September 2018, the company signed an investment agreement with the Jingzhou Economic and Technological Development Zone Management Committee, planning to invest US $ 2 billion in the construction of fine chemical products, new materials, and efficient and safe pesticides.

Profit forecast We are optimistic about the company’s scale, technology, cost 杭州桑拿网 advantages and long-term growth of the company in the glufosinate field. It is expected that the EPS for 2019-2021 will be 0.

74, 1.

21, 1.

71 yuan, corresponding to the closing price of 11 on August 16.

37 yuan, PE is 15, 9, 7 times, maintaining the “overweight” level.

Risk reminder: The price of glufosinate has fallen sharply; the progress of new projects is less than expected.