Jiansheng Group (603558): Significant improvement in cotton socks business

Jiansheng Group (603558): Significant improvement in cotton socks business

19Q1-Q3 Company income / net profit attributable to mother increased by 14.

6% / 31%.

19Q1-Q3 company revenue 13.

100 million, an increase of 14 in ten years.

6%, net profit attributable to mother 2.

3 ‰, a year-on-year increase of 31%, deducting non-net profit2.

10,000 yuan, an increase of 39 in ten years.

9%, gross profit margin 29.

4%, rising by 1 every year.

1pct, net interest rate 17.

3%, up 2 every year.

One point, the net cash of operating activities is 300 million yuan, with a multi-year appreciation of 34.


Third quarter 19 revenue 4.

800 million, an increase of 25% in ten years, net profit attributed to mother 0.

800 million, an increase of 32 in ten years.

7%, deducting non-net profit of 0.

9 trillion, an increase of 51 in ten years.

6%, gross profit margin 30.

5%, rising by 0 every year.

6pct, net interest rate 17.

2%, rising by 0 every year.

95 points, net cash from operating activities1.

800 million, an increase of 9 in ten years.


19Q3 revenue growth significantly increased earlier than 19Q2.

We believe that the reason for the significant improvement in the company’s revenue growth in 19Q3 was that ① the relocation of Hangzhou Smart Factory in 19H1 had a certain impact on crops, and production capacity gradually recovered in the second half of the year.

On September 19th, the company’s Jiangshan Industrial Park was officially opened, and the factory annually produces mid-to-high-end cotton socks.

3 billion pairs, with more than 2,000 knitting equipment, accumulated excessive foundation; ② Judging from the zero data of downstream agencies, we believe that domestic demand has picked up from the first half of the year; ③ underwear business continues to maintain competitive advantages and maintain rapid growth.

The decline in the expense ratio during the period led to an increase in net interest rate.


We believe that the company’s cotton socks production capacity is picking up. After the sales are expanded, the cost rate brought about by the scale effect will decrease, and the production efficiency of the newly opened factories will be further improved after gradual running-in.

We expect the business in Vietnam to develop smoothly and continue to contribute to net profit.

19Q1-Q3 company sales expense ratio 2.

8%, a decline of 0 per year.

4pct, management expense ratio 9.

5%, a decline of 0 per year.

4pct, financial expense ratio -0.2%, 0 per year.

6 points.

The impact of exchange rate changes on the elasticity of net profit has weakened, and gross profit margin has maintained steady growth.

In 19Q3, the company’s gross profit margin increased by 0 in ten years.

6pct, keep stable, we think the increase is higher than Q2 (3.

3pct) The increase was mainly due to the positive impact of the depreciation of the renminbi (19Q3 average exchange rate of Renminbi against the US dollar: 7.

0, 18Q3: 6.

8), we judge that the proportion of high-margin underwear remains stable.

The rebound in sales promoted the improvement of inventory indicators.

2019Q1-Q3 company inventory 4.

1 trillion, 0 per year.

5%, inventory turnover days 121.

9 days, reduced by 0 every year.

In 8 days, the first year to date has shown a positive trend. We believe that with the recovery of cotton socks business and improved production efficiency, the company’s inventory indicators will be further optimized.

Turnover days of the company’s accounts receivable during the same period were 58.

5 days, increase by 1 every year.

Keep stable for 5 days.

Profit forecast and estimation.

At present, the company’s Vietnam Haiphong factory and Vietnam Xing’an factory have begun effective operations. The seamless underwear factory and Qinghua factory in Xing’an, Vietnam are also under construction, and strive to complete an annual output in 20191.

Crop target of 5 billion pairs of cotton socks.

We expect the company to achieve net profit in 2019 and 20202.

50, 3.

13 ppm, given the company’s 2019PE estimated range of 18-20X, corresponding to a reasonable value range of 10.


00 yuan, maintaining the “permanent market” rating.

risk warning.

The risk of order loss, capacity expansion is not up to expectations, and exchange rate changes affect profit.

CEIBS’s three-year holding hybrid fund won a wholesale bank

CEIBS’s three-year holding hybrid fund won a wholesale bank

Recently, the three-year holding fund of the China-Europe Sailing Group of China-Europe Fund was formally approved.

It is understood that CEIBS Sailing is another holding period model product of CEIBS Fund after CEIBS Ingenuity and CEIBS Pension 2035.

Each allocation of the fund sets a lock-up period of 3 years, and the function of “closed holding period + fixed investment” enables it to apply for purchase or fixed investment every day.

This setting coincides with the long-term investment philosophy of the fund, which helps guide investors to make rational investments.

  It is understood that the “holding period model” is an innovative product with the highest fund ownership. At present, there are not many fund products that choose this model, especially in equity products.

Analysts point out that the core value of adopting “closed operation” fund products lies in “managing humanity” and avoid emotionally chasing gains and losses.

CEIBS ‘s “determinable investment + closed holding period” model is equivalent to providing investors with a tactical layout tool, which helps to obtain the transformation and higher win rate in the process of investing in closed operation funds.

China Europe Funds has two holding product lines in equity and fixed income at the same time, which is the embodiment of active investment management capabilities and product innovation design capabilities. It is also based on guiding investors to hold long-term, insist on fixed investment behavior, and adopt rationality.Investment keeps assets valued.

  At present, in addition to focusing on active investment management, the China Europe Fund also considers re-planning the existing product layout, condensing the product line, and concentrating its flagship products on various strategies 南京桑拿网 to gain market recognition through long-term replicable performance.

Guided by this idea, each flagship product will have a distinct strategy label, and ultimately achieve the strategic goal of providing investors with “multi-strategy” boutique funds.

Depth-Company-Sunlord Electronics (002138) Performance Review: Performance Growth Expected to Benefit from 5G and Automotive Electronics Development

Depth * Company * Sunlord Electronics (002138) Performance Review: Performance Growth Promotes Benefits from 5G and Automotive Electronics Development

The company released its 2018 annual report and achieved operating income23.

62 ppm, an increase of 18 years.

84%; net profit attributable to shareholders of listed companies increased by 40 each year.

23%, reaching 4.

7.9 billion.

The net profit of restructuring non-recurring gains and losses attributable to shareholders of listed companies increased by 51 year by year.


The company’s operations are stable and its performance has maintained a growth trend.

Key points supporting the rating In 2018, the company’s shares, the average net profit reached a record high, achieving operating income23.

62 ppm, an increase of 18 years.

84%; net profit attributable to shareholders of listed companies increased by 40 each year.

23%, reaching 4.

7.9 billion.

The reported company focuses on the development of ultra-miniature RF inductors and has obtained more customer certifications; it is expected that the one-piece high-power inductors will also achieve mass production and delivery in 2019.

In automotive electronics, power inductors, transformers, on-board common-mode initial current transformers, wireless charging coils, and other product platforms have been constructed successively, and batch delivery has been achieved.

In 5G, the company’s prototypes of dielectric filters, couplers, LTCC filters and other products were researched and developed. Some products received certification codes from key large customers, which was transformed into the arrival of 5G. Benefiting from the company’s earlier research and development, the start of filter research and development, andWith experience in microwave materials and good cooperation with major customers, the company cooperates with mainstream equipment manufacturers to develop 5G ceramic filters, which is expected to benefit in the 5G era.

At the same time, the company’s transformers, wireless charging coils 深圳桑拿网 and other products are also being promoted.

The company is a leading company in domestic inductance, that is, the head end customer that has covered the domestic smart phone terminal market.

As the penetration rate increases among several major end customers and the number of major end customers increases, the company is expected to benefit.

At the same time, when 5G applications are converted to land, its single machine usage is expected to increase significantly, and its market space will gradually open.

In the field of automotive electronics, after the company’s development in the field of automotive electronics in the past few years, some of the company’s products have passed certifications from major manufacturers such as Bosch and Valeo.

The automotive electronics certification cycle factory has high barriers and long-term stable orders. It is expected that it will bring some revenue growth to the company in the future.

The main risks faced by the rating are that smart phone end customers, automotive customers, and other customers are less broad than expected.

Estimated for 2019?
In 2021, the net profit will be 5 respectively.

90 billion, 7.

7.7 billion and 8.

95 trillion, EPS is 0.

727 yuan, 0957 yuan and 1.

103 yuan, the current expected corresponding estimate is 24.

6 times, 18.

7 times and 16.

2 times.

Optimistic about the company’s customers and product line expansion, maintaining the buy level.

Alcoholic Brewery (000799): Confirmation of advance receipts affects income and expense, drags down profits

Alcoholic Brewery (000799): Confirmation of advance receipts affects income and expense, drags down profits
The report text event Jiujiu Jiu announced the third quarter report of 2019, the company 19M9 revenue 9.68 ppm, +27 a year.34%; net profit attributable to mothers1.84 trillion, ten years +14.27%.Among them, 19Q3 achieved income 2.59 trillion, ten years +9.48%; net profit attributable to mother is 0.28 ppm, at least -39.50%, lower than market expectations. Note 1: After the recovery of advance receipts, the income maintained a high increase, and the pace of expense recognition dragged down the profit level.The company’s single 南京桑拿网 third quarter revenue2.59 trillion, ten years +9.48%, an outstanding growth rate compared to the first half of the year, and Q3 net advances increased by 0.7.4 billion yuan, Q3 real income after tax is 3.120,000 yuan, the real income after the recovery of the advance payment in the same period last year was 1.76 yuan, the real income growth rate of this caliber in the next three quarters is about 70%, and overall still maintains high growth. Judging from our analysis and feedback, the internal sales company has completed its tasks in October, the sales volume has doubled, and the sales revenue of the sales company has reached US $ 50 billion. Under the system reform, internal sales companies are more optimistic about the high growth of internal sales this year and next.In terms of cash flow, 19Q3 sales of goods received cash inflows2.880,000 yuan, +50 for ten years.17%, net cash flow from operations 1.79 trillion, +215 a year.25%, also verified that the company’s actual ability to receive money is higher, dealers expect to make money.19Q3 return to mother net profit for ten years -39.5%, the first is the company’s expenditure expenses according to the expected revenue growth target, the expenses increased significantly and poor sales dragged down net profit. 2. The structure is improving, and the expense recognition has dragged down the net profit.The company’s Q3 gross profit margin was 77.56% (Q1: 77.49% / Q2: 77.58), the previous + 87bp, the initial is the rapid growth of internal reference sales, structural improvement and improvement.Q3 sales expense ratio was 37.53%, compared with 27 in the same period last year.33%, an increase of 10 per year.2pc, the maximum sales expense ratio is further increased, that is, the third quarter expenses and confirmation rhythm problems, is expected to gradually or return to a stable level; Q3 management expense ratio 11.07%, compared with 11.12%, little change. Q3 net margin was 10.88% (Q1: 20.99% / second quarter: 22.92%), at least -8.8pct, the sharp decline in net profit was due to the drag on selling expenses. Risk warning: economic downturn affects the prosperity of sub-high-end liquors, large-scale expenses, etc.

Gold Medal Kitchen Cabinet (603180): Engineering heavy volume helps growth accelerate cash flow maintenance

Gold Medal Kitchen Cabinet (603180): Engineering heavy volume helps growth accelerate cash flow maintenance
Core point of view: The company disclosed in its 2019 Interim Report that net profit attributable to mothers increased by 13.87% of companies achieved revenue 7 in H1 2019.8.5 billion (+ 22% year-on-year.15%), net profit attributable to mother is 69.8 million yuan (+13 compared with the same period last year).87%).One single Q2 achieved operating income of 5.7.0 billion (+ 33% YoY).14%), net profit attributable to the mother is 50.72 million yuan (+18 compared with the same period last year).74%).Company Q2 gross margin was 36.14% (year -3.63pct), net profit attributable to mother 10.00% (year -1.21pct).The growth rate of profit is lower than the growth rate of income, which is mainly due to the heavy volume of engineering business, which lowers the profit rate.The company’s Q2 net operating cash flow inflow2.08 million, extra healthy cash flow. Kitchen clothing and wood products are diversified. Channels actively embrace the hardcover market. In the first half of the year, the retail business of cabinets was under pressure to actively adjust.33%).It reported that the number of cabinet franchise stores of first-tier companies increased by 103 to 1,508, and the number of wardrobe franchise stores increased by 128 to 459.In addition, the company is also actively deploying new businesses such as wooden doors, cloud finishing, and smart homes, which provide growth momentum for the company’s long-term development reserve. Benefiting from the rapid development of the hardcover housing market, the company’s H1 bulk business achieved revenue1.7.3 billion (+142 y / y).98%).At present, the company has established strategic cooperation with 38 of the Top 100 real estate developers.In addition, the company strengthened the cultivation of core engineering agents, strengthened the agent’s operating capabilities, and its risk control capabilities. Earnings forecast and investment advice The company’s EPS for 2019-2021 is expected to be 3 respectively.73, 4.41, 5.23 yuan / share, closing on August 22 corresponds to 2019 PE 15.1 times.The company’s main business volume is relatively small, and its category expansion and channel expansion are flexible. With reference to the same industry valuation, a reasonable estimate of 20 times PE in 2019 is given, corresponding to a reasonable value of 74.6 yuan / share.We are optimistic about the category of the company and the driving force for channel expansion, and maintain the company’s “Buy” rating. Risks suggest that real estate sales are sluggish and competition in the industry is intensified; the expansion of wardrobe 佛山桑拿网 and wooden door categories has fallen short of expectations; the channel advancement has fallen short of expectations.

CITIC Securities (600030): Steady performance of balanced and continuous leading

CITIC Securities (600030): Steady performance of balanced and continuous leading

Investment performance rose and thickened profits, leading the overall stability, the layout outlook 2019H1 return to net profit of 64.

500 million, +15 for ten years.

8%; operating income 217.

9 ppm, one year + 9%; basic EPS is 0.

53 yuan, expected ROE is 4.

11% (annualized), which is basically consistent with the performance report.

In general, the company’s investment income has grown and its performance has increased.

The company’s leader is generally solid, and EPS1 is expected in 2019-2021.



49 yuan, BPS13.



90 yuan, maintain BUY rating, target price of 26.

01 – 27.

35 yuan.

Investment income has grown significantly. Among the securities financing business’s enhanced pricing and risk control level trading business, investment business growth is the core of performance growth.

2019H1 self-operated net income of 72 trillion, +55 in ten years.

8%, the gains from disposal of financial instruments increased significantly.

The stock self-investment insists on absolute return. The stock balance in the final trading financial assets in 19H1 was 39 billion yuan, + 30% compared with the beginning of the year.

FICC is leading the way with a forward-looking layout. Bonds and other debt investments in trading financial assets totaled 1,834 trillion, which was -1% earlier.

Quantitative alternatives are the core of alternative investments and flexible use of financial instruments and derivatives.

Securities financing improved pricing and risk management.

At the end of 19H1, 614 trillion yuan of funds were disbursed from the mainland, which was + 14% earlier; the stock pledged balance was 437 trillion, which was + 14% earlier.

2019H1█ net income of 14 trillion, +8 consecutive.

1%, mainly due to reduced interest rate expenditure.

The investment bank business scale is leading the whole line, and the private equity investment returns are excellent. The company’s investment bank business maintains its advantages and strengthens the full product coverage of customers.

The 19H1 A-share main acceptance amount was US $ 122.9 billion, with a market share of 20%, ranking first, among which the IPO scale was 160 trillion and the refinancing scale was 106.8 billion.

The amount of bond underwriting ranked first in the industry, reaching 452.9 billion yuan.

The major assets reorganization amount is about 37.5 billion, ranking third in the industry.

2019H1 investment bank net income of 180,000 yuan, three years +3.


The company’s science and technology board layout is also in a leading position.

Equity investment performance is outstanding.

Private equity investment subsidiary Jinshi Investment 19H1 net profit 8.

8 ‰, previously + 329%; alternative investment subsidiary CITIC Securities invested 19H1 net profit3.

9 trillion a year + 17%.

Brokers continue to promote the transformation of wealth management, and asset management adheres to the “based on institutions and retail” brokers to optimize customer classification and classification systems, rich product systems, and in-depth application of financial technology to achieve wealth management upgrades.19H1 brokers’ net income was 380,000 yuan, -7 throughout the year.

6%, it is expected that the main reason is that the client structure is mainly institutions.

Asset management adheres to “based on institutions, taking into account retail”, actively develops big pension and occupational annuity businesses, and strives to develop new business models for the transformation of banking business.

19H1 End Asset Management 1.

3 trillion, -3 from the beginning of the year.


Among them, the scale of collections was 1179 million, which was -12% earlier; the scale of targeted categories was 1.

2 trillion, -2 from the beginning of the year.


19H1 asset management net income 26.

7 ‰, at 厦门夜网 least -8.


The stable and balanced advantage is obvious. The business of Hengqiang, which is expected to be strong, is stable and balanced, with a forward-looking layout.

Employee incentives and mergers and acquisitions have taken a two-pronged approach to promote leapfrog development.

Taking into account the sale of the shares of CITIC Construction Investment to increase its 19-year profit and the changes in the current market environment, adjust the profit forecast, and expect EPS1 in 2019-2021.



49 (previous value was 1.



56), corresponding to PE18, 17 and 15 times.

Predict BPS13 from 2019 to 2020.



90 (previous value: 13.



88), corresponding to PB1.

70, 1.

61 and 1.

52 times.

Comparable companies expect the average number of 2019 PBwind1.

38. Considering that the company is the industry leader, the target PB premium for 2019 is given to 1.


05 times, with a target price of 26.

01 – 27.

35 yuan, maintain BUY rating.

Risk Warning: Business development is less than expected, and market fluctuation risks.

Funeng Shares (600483): Coal Power Contributes Incremental Performance Wind Power Is Expected to Continue to Grow

Funeng Shares (600483): Coal Power Contributes Incremental Performance Wind Power Is Expected to Continue to Grow
Event Funeng shares release 2018 annual report Funeng shares release 2018 annual report, the company achieved operating income of 93 in 2018.54 ppm, an increase of 37 in ten years.57%; realize net profit attributable to shareholders of listed companies.50,000 yuan, an annual increase of 24.52%; net profit after deduction is 10.370,000 yuan, an annual increase of 25.93%; expected average ROE is 9.65%, an increase of 1 per year.44 units. A brief comment on the incremental profits contributed by Hongshan Thermal Power Co., Ltd., Jinjiang Gas Power Co., Ltd. was less affected than expected by the impairment. In 2018, it benefited from the consolidation of China Resources Liuzhi Power Plant and the recovery of power demand in Fujian Province. The company completed 181 power generation.7.4 billion kWh, an increase of 71 in ten years.10% is the main driving force for revenue growth.From the perspective of the company’s thermal power business, the gross profit margins of the company’s coal power and gas power in 2018 were 17 respectively.2%, 7.2% twice a year.2 in total, up by 2.4 units.The decline in gross profit margin of coal power business was mainly due to the consolidation of China Resources Liuzhi Power Plant, which has poor profitability.Benefiting from the increase in grid-connected electricity and the change in donors, Hongshan Thermal Power achieved net profit for the current period4.390,000 yuan, an increase of 47 in ten years.22%, the main profit increase for the company’s performance growth.Jinjiang Gas & Power achieved a net profit of 0.US $ 4.1 billion, we judged that it was less than expected and 0 was generated for the upgrade of Unit 2.3.5 billion in impairment of fixed assets.With the further decline in the market’s coal price hub, China Resources Liuzhikengkou Coal Mine gradually resumes production, and the company’s coal power business is expected to further contribute to performance flexibility.Taking into account that preferential policies such as alternative fuels remain stable, we judge that Jinjiang Gas and Power is expected to maintain a net profit of about 100 million. Wind power installed capacity continues to grow, and this year will become the year of the company’s offshore wind power. In 2018, the company’s average wind power utilization hour was 2692 hours, which fell every 145 hours, but still 597 hours higher than the national average.Affected by wind fluctuations, the company’s wind power generation is 18.6.4 billion kWh, a slight decrease of 1 in ten years.05%; wind power gross margin is 64.5%, the ten-year average of 3.1 unit.Funeng New Energy achieved net profit4.22 ‰, an average of 8 in ten years.31%.At the end of 2018, the company held onshore wind power 71.40,000 kilowatts, after Yangping and Waishan put into operation, the company’s onshore wind power installed capacity has reached 75.40,000 kilowatts.Taking into account Dingyan Mountain 4 during the year.80,000 kilowatts and some of Panzhai’s installed capacity were put into operation. We expect the company’s onshore wind power capacity to reach 84 by the end of 19th.20,000 kilowatts.The company is currently under construction of 400,000 kilowatts of offshore wind power (Pinghai Bay F District and Shicheng), the project is progressing smoothly, and gradually put into operation about 150,000 kilowatts, and Changle Offshore C Zone 49.80,000 kilowatts of offshore wind power capacity has been approved.With the gradual development of the company’s offshore wind power construction work, the company’s wind power growth capacity will be gradually released.According to our calculations, under reasonable assumptions, the company’s onshore wind power and offshore wind power have a total return on investment after tax of 10, respectively.1% and 9.8%, which is higher than the average return rate of 8% in the industry. Asset integration was promoted in an orderly manner, and the controlling shareholder of the company maintaining the “buy” rating. In order to resolve the competition in the industry, it planned to transfer 10% of the equity of Fujian Ningde Nuclear Power to the 南京夜网 listed company in order to bring stable investment income to the company.At present, there are still 1.75 million kilowatts of thermal power rights to be injected into the Group’s body, and asset consolidation is progressing in an orderly manner.In the long run, we believe that high-quality wind power resources in Fujian will bring continuous growth to the company.At present, the operation of offshore wind power in Fujian Province is in good condition, and these profit indicators are at a high level.Assuming that the company’s projects under construction are put into production as planned in the future, and without considering the impact of asset injection, we estimate that the company’s net profit attributable to the mother will be 14 in 2019-2021.7.4 billion, 18.08 thousand yuan, 19.420,000 yuan, maintain “Buy” rating.

GAC Group (601238): Autonomous Fick weighs on performance and is bullish on Japanese strong cycle

GAC Group (601238): Autonomous Fick weighs on performance and is bullish on Japanese strong cycle

Investment Highlights The company released the 2019 first quarter report: 2019Q1 total operating income 143.

7 billion, New Year’s Eve 26.

1%; net profit attributable to mother 27.

8 billion, 28 from the previous decade.

4%; deduct non-net profit 22.

1 billion, 41 from the previous decade.

9%, net investment income 25.

700 million, an annual increase of 5.


High base additional autonomy and Fick sales volume, 19Q1 return to 南京夜网论坛 mother net profit swap insert.

The company sells 49 cars in 2019Q1.

50,000, two years ago.

7%, significantly better than the industry, of which Guangben / Guangfeng / Guangchen / Guangfei Ke / Guang Mitsubishi sales of 18.





20,000 vehicles, +11 ten years ago.

4% / 45.

6% /-41.

0% /-41.

3 / -16.

6%, of which Japan ‘s Guangfeng Guangben significantly outperformed the industry, mainly due to the strong inventory of new Japanese cars. Guangfei Keguang ‘s independent innovation underperformed the industry, which was mainly destocking and Fick ‘s JEEP sales decreased.Growth in the industry.

The profit of Guang Fick and the growth of Guang Mitsubishi partially offset the growth of Japanese investment income, so the company’s 19Q1 investment net income increased by 5% to 25.

700 million; 都市夜网 independent sales growth, promotion expansion, expansion of part of the promotion accounting accrual from cost to cost, so that the company’s overall gross profit margin increased and replaced.

1pct to 12.

4%, and the company’s 19Q1 “net return to mother minus investment income” was changed to 12.

100 million to 2.


18Q1 company’s net profit attributable to mother 38.

800 million, which is the best quarter for the company’s historical profit. Under the combined effect of high base and autonomy and Fick pressure, the company shifted its net profit by 28 in 19Q1.

4% to 27.

8 billion.

We expect the company ‘s Japanese system to be strong and sustainable, while Autonomous Fick is expected to improve margins and maintain a “Buy” rating.

The company’s Japanese core model B-class sedan Camry Accord has been renewed in 2018, and GAC Honda Binzhi has been remodeled in 2019, Odyssey Hybrid Edition, GAC Toyota Ralink (including HEV) replacement, Ralink PHEV.By the domestic GAC CRV and RAV4, the strong trend is expected to continue.

In terms of autonomy, the pressure of destocking was conducted in the first quarter of 2019, but after GM6, GS5 new cars, GA6 replacement, GS8 remodeling, GS4 replacement, independent sales improve marginal improvement; Guangfei Ke 18H2 free light reform and a new commanderPromote improved Fick sales.

We maintain the company’s net profit attributable to mother for 2019/2020/2021 to 109.


800 million forecast, maintain “Buy” rating.

Risk reminder: the industry’s growth rate is gradually expanding; independent further growth; Guangfei Ke gradually further expanding.

Haier Zhijia (600690): Maintaining growth in order to increase market share under weak industry conditions

Haier Zhijia (600690): Maintaining growth in order to increase market share under weak industry conditions

Event: Published 3 quarterly reports. From January to September 2019, it realized operating income of US $ 148.9 billion, which increased by 7.

72%; net profit 77.

700 million, an annual increase of 26.

16%; basic return 1.

22 yuan.

Key points for investment: Under the weak industry, increase the market share and increase the performance. According to the data from Aowei Cloud, the company ‘s main ice washing industry ‘s retail sales of domestic refrigerators in the first nine months of this year were US $ 69.2 billion, a decrease of 1.

2%; retail sales of washing machines were 48.9 billion yuan, a slight increase over the years1.

8%; the retail sales of electric water heaters were 21.5 billion yuan, a decrease of 8.


During the same period, Haier’s refrigerator and washing machine offline retail share increased by 1, respectively.

4, 2.

The seven subdivisions reflect the weak performance of the industry. Leading companies have improved their performance by crowding out their peers.

The high-end market and the overseas market are the growth-driven companies, mainly the high-end and promote the growth.

From January to September, the income of each high-end brand Casa Di increased by 25%, of which 42% increased from July to September; Casa Di refrigerators and washing machines had a market share of more than 10,000 yuan, ranking 40.

6%, 76.


Overseas market Haier’s overseas market revenue increased by 25%, accounting for 47%.

The future-oriented Industrial Internet industry has initially taken shape. Haier’s built-in 1 (main platform) + 7 (module) + N (industry) platform architecture system can realize the cross-industry and cross-domain application of the Industrial Internet. The 15 major industry companies provide integrated software and hardware solutions, and the large-scale customized industrial Internet COSMAPlat platform’s revenue in the first three quarters increased by 55% to 80.

600 million, the preliminary formation of the future-oriented industrial Internet industry.

Profit forecast and investment income; the 北京养生会所 company’s 3 quarterly reported profit growth of 26% was mainly due to disposal of one-time profits contributed by logistics distribution14.

4 trillion, only increase by 5 after deduction.

65%, we believe that the entry into the industry is weaker and competition is more intense. The company as a whole will enter a low-speed growth stage. It is predicted that the profit due to disposal and distribution will increase by about 25% this year.

32 yuan, dynamic assessment 11.

5 times, initially recommended level.

Risks prompt increased competition in the industry and impediments to exports

Jinjia Co. (002191): Pre-announced profit growth of 20% -30% semi-annually in the first three quarters

Jinjia Co. (002191): Pre-announced profit growth of 20% -30% semi-annually in the first three quarters

1H19 results are in line with our expected 1H19 results: revenue 18.

6.5 billion, an increase of 15.

9%; net profit attributable to mother 4.

65 ppm, corresponding to a profit of 0.

32 yuan, the same increase of 22.

6%, in line with our expectations.

Looking at the quarter, Q1 / Q2 company revenue increased by 24.

1% / 7.

5%, net profit attributable to mothers increased by 21.

8% / 23.


The company foresees 1-3Q19 the company’s net profit growth rate is 20% -30%.

Development trend 1. The main business of cigarette labels is growing steadily, and the color box business is accelerating.

The company’s revenue increased by 15 in the first half of the year.

9%, by product: 1) The main business of cigarette labels increased by 6.

55%, the national cigarette production in the first half increased by 3.

8%, the company ‘s cigarette label growth rate is faster than the downstream output growth rate, which shows that the company ‘s market share continues to increase. We expect the company ‘s scale tobacco label revenue growth to maintain a medium to high number; 2) The color box business revenue growth exceeds 81%.The proportion of revenue increased to 18%. Among them, the growth rate of boutique cigarette cases, wine bags, and electronic packaging has maintained a rapid momentum. In the first half of the year, the company opened up new tobacco brands such as Lingxi, Momo, Twepp, and Magic Flute as customers, and has wonConvenience of mobile phone brand suppliers such as Nuo and Haipai; 3) Revenue of the company’s laser packaging materials business increased 2.

99%, the production capacity of the laser film products of the subsidiary of Toyota after the technological transformation has been improved.

2. Profitability continued to improve.

1H19 company achieved gross profit margin 43.

1%, a year drop 深圳丝袜会所 of 1 ppt, mainly due to the impact of changes in the company’s product structure, color box business gross margin of 32.

7%, although sometimes significantly increased by 6.

7ppt, but because of the expansion of its revenue share still lowers the overall gross profit level, the gross profit margin of the cigarette label business is 43.

8% was basically stable; the company’s expense ratio fell to 0 during the period.

7ppt, the cost is properly controlled; the company realized investment income of 49.38 million yuan in the first half of the year, an annual increase of about 20 million yuan, Chongqing Hongsheng net profit increased by 277% to 77.8 million yuan, Shenren packaging net profit increased by 235% to 24.85 million yuan, investmentThe target operation continues to improve.

In summary, the company’s net interest 四川耍耍网 rate increased by 1.

4ppt to 24.


3. The second half of the year will focus on the implementation of new tobacco policies.

In the first half of the year, the company’s own brand electronic cigarette FOOGO was launched. A joint venture established with a subsidiary company of Yunnan Tobacco undertook the production of Yunnan Tobacco’s heating and non-combustion smoking appliances. In addition, Jinjia Technology also provided R & D, foundry services for FOOGO, WEBACOO and other brands.The three main lines of development of the tobacco business are clear.

In the second half of the year, we expect the e-cigarette industry standard to be issued soon, which is good for leading companies that have such product specifications and have significant advantages in the China Tobacco system.

Earnings Forecasts and Estimates We maintain the company’s 19/20 0.


The profit forecast of RMB 74 remains unchanged.

The current contradiction corresponds to 19 / 20e 18/15 times P / E.

Maintain Outperform rating and target price of 17.

5 yuan is unchanged, corresponding to 28/24 times P / E in 19/20, and currently has 55% growth space.
The price of risky raw materials fluctuated sharply, and the development of new-type tobacco business fell short of expectations.