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.