China Boulder (600176): Cost-side competitive advantage continues to strengthen
Matters: The company recently released its 2018 annual report, reporting and achieving an operating income of 100.
32 ppm, an increase of 15 in ten years.
96%, net profit attributable to mothers23.
74 ppm, a 10-year increase of 10.
43%, basic profit income is 0.
68 yuan / share, an increase of 10 in ten years.
In addition, the company intends to send 2 out of 10.
25 yuan (including tax).
Comment: Alkaline fiberglass yarns and products have achieved rapid growth, demonstrating strong competitiveness at the cost side again. In 2018, the company’s fiberglass yarns and products achieved 95 revenue.
40,000 yuan, an increase of 13 in ten years.
7%, operating cost 50.
50,000 yuan, an increase of 12 in ten years.
3%, revenue growth is slightly faster than cost.
The gross profit margin of the fiberglass and products business was 47 in 2018.
05%, rising by 0 every year.
The company’s sales growth in 2018 is relatively obvious. Considering that the price of glass fiber has dropped significantly in the second half of 2018, but the company’s gross profit margin has increased, our calculations show that the cost decline is stronger than the product price decline, showing the company’s extremely excellent competitiveness.
The negative 杭州桑拿网 growth of Q4 single quarter profit was mainly dragged down by three reasons. From the perspective of Q4 single quarter, the company’s revenue was 24.
30,000 yuan, an annual increase of 8.
63 units; gross profit margin 22.
28%, more than ten years.
33 units; net profit attributable to mother 4.
61 ppm, a decrease of 22 per year.
There are 86 reasons for the decrease in Q4 net profit. There are four main reasons for our judgment: First, the price of products has fallen, second, foreign products have been affected by exchange rate changes, and third, the company has withdrawn about 92 million assets in the quarter.
Affected by the decline in financial expenses, the period expense ratio decreased significantly during the reporting period.
49%, a decrease from the same period last year.
39 single ones, of which sales, management (including R & D) and financial expense ratios are 3 respectively.
24% and 3.
4%, rising by 0 each year.
07 and -1.
For 45 shares per share, the decrease in financial expense ratio was due to the decrease in expenses and increase in exchange income during the period.
The company is still in the period of rising production capacity. The company that has increased capital expenditure in the next two years will be at the peak of capital expenditure in the past three years. At present, the five major projects are fighting at the same time.With a production capacity of 35 tons, the central region has completed a 35-ton capacity layout. The intelligent manufacturing base at Tongxiang headquarters has a 16-year annual production line for roving and a 6-year annual production line for spinning. The production line is ignited as scheduled.The 25-year-old production line will be constructed at the new site; the supporting projects of the Egyptian production base are completed and put into operation in turn, and 20 production bases are announced to be fully completed; the US project is entering the sprint stage and the ignition is imminent.
By optimizing the product and customer structure, the high-end market share was further increased.
In the future, the product structure will continue to be optimized, and the proportion of high-end products will be improved to stabilize the industry’s cycle changes. The company ‘s E8 formula market has been increasing in recognition, with huge potential for expansion. The high-modulus E9 formula has completed laboratory-level formula confirmation.With the direction of higher strength and modulus, more reasonable, greener, more environmentally friendly, and more secure, the direction is continuously improved, providing continuous support and guidance for new areas, new market expansion, quality improvement, cost reduction and efficiency improvement.
The company has first-class R & D strength in the industry and world-class technology level. The proportion of high-end products continues to increase, pushing forward to overcome industry progress, and to stabilize changes in prices and gross profit margins. The intelligent manufacturing base of the Tongxiang headquarters is based on the “deep integration of the two industries” and the construction of smart factories. In the future, the company will have better development in structure, cost, technology and efficiency.
Maintaining the “overweight” rating, we expect the company’s revenue for 2019-2021 to be 112.
7 and 136.
800 million, an increase of 12 each year.
7% and 9.
7%, net profit is 25.
8 and 32.
800 million, an increase of 9 each year.
3% and 13.
8%, EPS is 0.
82 and 0.
94 yuan, corresponding to 19/13 PE of 15/13 / 12x.
The company is currently actively expanding its production capacity and transforming it into an intelligent production and product structure that increases the proportion of high-end glass fiber products.
In the short term, fluctuations in the price of fiberglass products may weigh on the company ‘s performance, but in the long term, the company ‘s competitiveness will be further strengthened and small businesses eliminated. The company ‘s market share and voice will continue to increase, maintaining its “overweight” rating.
Risks indicate risks of changes in related financial policies; risks of RMB exchange rate and loan interest rate; risks of changes in raw material and fuel prices;