Collis (603808) Annual Report 2018 Review： Mature Brands and Direct Channels Perform Better than Main Brand Stores

Collis (603808) Annual Report 2018 Review: Mature Brands and Direct Channels Perform Better than Main Brand Stores

Report Highlights The event describes the company’s release of the 2018 annual report.

In 2018, the company’s revenue and net profit attributable to its mother were 24.

36 and 3.

6.5 billion, + 18.

7% / + 20.

7%, of which, in 18Q4, revenue and net profit attributable to mothers were 7.

00 and 0.

9.7 billion, +3 per year.

89% /-3.

31%, the revenue side continued to decrease, Q4 distribution channels continued to subdivide and the growth rate of Baiqiu under the background of high bases was the main factor caused by the drag on revenue, and the direct sales side remained relatively stable; Q4 new extension stores accelerated the expense increaseLarge, resulting in a slight decrease in net profit in a single quarter.

The company plans to take the total share 四川耍耍网 capital3.

3.2 billion shares are the base number, and a cash dividend of 5 is distributed for every 10 shares.

25 yuan, the dividend rate is 48%, the dividend rate has increased significantly.

　　Event reviews The direct sales performed better, and the store adjustment was nearing completion.

In 18 years, the company achieved revenue of 24.

36 trillion, ten years +18.

7%.

1) Revenue by brand, Colix, Laurel, ED, and IRO are 10 respectively.

04, 1.

11, 4.

98 and 5.

67 trillion, each year +4.

3% / + 14.

1% / + 14.

2% / + 43.

At the end of the period, the growth rate overlapped with the same period last year. At the end of the period, the number of company stores reached 592 and the net opening was 59. Among them, the main brand and other brands opened -10 and 69 respectively, and the main brand opened 3 stores in 18Q4. The store was adjusted.Towards the 成都桑拿网 end.
2) By channel, the company’s direct sales and franchise revenue are 12 respectively.

61, 9.

29 ppm, +18 a year.

1% / + 13.

0%, 18Q4, direct management / joining more than +12% /-16% respectively, refined operation guarantees stable growth of direct management, and franchise reorganization growth rate replacement is the main factor dragging down the acceleration of revenue growth.

　　In 18 years, the company’s sales / management (including R & D) / financial expense ratios were 29.

98% / 13.

09% / 0.

02%, respectively +1.

10 / -1.

27 / + 1.

22 points.Increase in sales expense ratio The development of the company’s expanded marketing network, increased terminal sales staff incentives and direct sales promotion; the decline in management expense ratio benefited from the emergence of multi-brand synergy and the reduction of distribution incentive expenses.

Interest rate expenses were 25 from the same period last year.

8% dropped to 21.

3%, driving the growth of the profit side and the income side.

Net cash flow from operating activities of the company.

10 billion US dollars, down ten years ago.

9%, mainly due to the increase in cash expenses brought by the increase in stocking and staff expenses; inventory turnover and accounts receivable turnover rate also declined to some extent.

　　Weak market background The direct sales end maintained steady growth, demonstrating that the company’s refined management capabilities are remarkable. The main brand has been ranked in the top ten in the comprehensive high-end women’s clothing market for eight consecutive years, and it has won the first place in 18 years.In the future, with the development of the People-Friendly Line and the increase in the number of channels, the main brand still has room for improvement; the multi-brands acquired externally are excellent, and it is expected to become an important driving force for future growth with the company’s refined operation and blessing.

The company is expected to achieve a net profit of 4, respectively, from 2019 to 2020.

31 and 5.

04 ‰, at least + 18% and + 17%, respectively, and the current price of 19PE is only 13X. Maintain “Buy” rating.

Risk Warning: 1.

The terminal retail was sluggish; 2. The merger and acquisition was lower than expected; 3. The store opening was lower than expected.

Li Tailai (603659) investment value analysis report： industry-oriented strategy for the rise of lithium power platform

Li Tailai (603659) investment value analysis report: industry-oriented strategy for the rise of lithium power platform

Core point of view The company was established in 2012. Based on the endogenous extension of industry and capital advantages, it has rapidly grown into a platform-type lithium battery material and equipment supplier. Its businesses are at the leading level in the industry and it is an absolute leader in the field of artificial graphite doping.

The company’s technology and products have global competitiveness, domestic supply of ATL, CATL, etc., overseas supply of Samsung SDI, LGC Chemical and other battery leaders, is a high-quality enterprise in the global lithium battery supply chain.

Demand for the company’s orders is strong. Beginning in the second half of the year, expansion will benefit from the release of production capacity, and the initial integration of the industrial chain will form a high cost barrier, which is expected to drive the company’s performance to continue to grow.

　　Yi Tailai: High-growth platform-type integrated lithium battery supplier.

The company was established in 2012. The core team has rich experience in the lithium battery industry and the capital market. The company started from short-term materials business, continued to expand by integrating industrial resources, combining technology and capital advantages, and has formed repeating materials, lithium battery equipment, fillers, aluminumFour major business segments of plastic film, of which long-term business revenue accounted for the highest proportion, reaching 60%.

In recent years, the company’s performance has maintained high growth, with 2018 revenue of 33.

1 ‰, +47 per year.

2%, net profit attributable to mother 5.

9 trillion, +31 a year.

8%.

The 2014 and 2018 CAGR of revenue and net profit attributable to mothers were 60% and 117%, respectively.

　　Permanent materials business: It is estimated that the industry space will be 500 million US dollars in 2025, and the artificial graphite leader will gain global competitiveness.

The global new energy automobile industry is rapidly emerging, and the demand for lithium-ion interconnect materials is growing rapidly. It is expected that the industry scale will exceed 20 billion and 50 billion US dollars in 2021 and 2025, of which the penetration rate of artificial graphite is over 80%.

The company is the leader of artificial graphite, with the following advantages: 1) the world’s leading technology, with unique secondary granulation technology; 2) high-quality customers, high-end products, customers include ATL, Samsung SDI, LG Chemical, BYD and 苏州夜网论坛 other battery giants,Unit profit in 20181.

40,000 yuan / ton, far higher than the industry average (4000-6000 yuan / ton); 3) The axial layout of the industrial chain is graphitized, carbonized, and needle-shaped focal length, creating cost barriers.

　　Long-term materials business: Sales volume has reached a new high, and gross profit margin has stabilized and rebounded.

The market believes that the company’s upstream supply is mainly for consumer batteries. The future volume increase is not obvious, and profitability is declining. We believe that: 1) Capacity release promotes growth: the company’s 2018 capacity / replacement is 3 substitutes / 2.

93 predicts that the throughput will be difficult to meet the demand for orders. It is expected that the production projects will be gradually raised and put into operation 都市夜网 in 2019/2020. The throughput is expected to reach 5 inches and 8 tons, which will promote the company to gradually reduce to a new high.A major customer is the consumer battery leader ATL. This year is expected to bring breakthrough growth and transformation in power batteries. Overseas customers Samsung SDI, especially LG Chem, have significantly increased long-term demand; 3) Industry chain integration and integration will begin in: The rise in raw material and graphitization prices at the beginning of 2019 led to the decline in final gross profit margin. The company’s 5 // year graphitization capacity was put into production in the second half of the year. It is expected to bring down costs by 6,000 yuan / ton. Continuous gross margin is expected to stabilize and rise.
　　Industry-oriented, strategy as the trend, around the lithium battery, many points bloom.

The company focuses on lithium battery supply services, relying on the core team’s industrial resources and capital market experience, and has successively expanded a number of businesses, among other things, and is at the industry-leading level: 1) lithium battery equipment: the subsidiary Xinjiatuo is the leader in replacement machines.It is estimated that the global market space for equipment in the first half of 2020 will reach 14.9 billion U.S. dollars, and the company’s high-speed replacement equipment performance will be comparable to overseas, which will increase the price advantage and achieve sustained growth.

2) Merger: The company is the largest third-party merger company in China. It is deeply bound to the Ningde era and is subject to capacity constraints. In 2019, it will accumulate about 200 million flats. The release of transportation capacity and the demand of the Ningde era will be expected to release more than 5 goods in 2019.Yiping.

In addition, the company acquired Yuequan in 2018 to expand into the wet-based base film business.

3) Aluminum-plastic film: The company switched from trade to independent R & D and production, and basically realized the ability to replace imported aluminum-plastic film. Its revenue in 2018 was 59.25 million yuan (+ 75% year-on-year), which is expected to become a potential growth point for the company in the future.

　　Risk factors: New energy vehicle market demand is less than expected; rising raw material prices lead to a decline in gross profit margin; acceleration of long-term industry capacity expansion leads to increased competition, and price rises fall.

　　Investment suggestion: The company deeply constrains downstream upstream lithium battery leading customers, transforms power, especially the rapid growth of overseas customer demand, and the release of production capacity drives growth. The cost brought by the integration of the industrial chain is reduced, and the company’s performance growth is highly certain.

We expect the company’s EPS for 2019/2020/2021 to be 1, respectively.

76/2.

37/3.

15 yuan, considering that the company is the leader of artificial graphite, gaining global competitiveness, is the high-quality target of overseas lithium power supply chains, and enjoys a certain estimated premium, giving the company 35 times PE valuation in 2019, corresponding to a target price of 62 yuan, the first coverage given”Buy” rating.

Gree Electric (000651)： Waiting for mixed reforms to land and steady growth in performance can be expected

Gree Electric (000651): Waiting for mixed reforms to land and steady growth in performance can be expected

This report reads: As Gree promotes modest promotions, the company’s market share and performance growth rate have significantly improved.

If the mixed reform is successfully implemented, it will further improve corporate governance and improve the quality of operations. It is also expected that the system will be restructured to maintain an overweight rating.

Investment points: Maintain profit forecast and target price, and maintain overweight rating.

With the promotion of moderate sales by Gree, the company’s market share and performance growth have further improved.

If the mixed reform is successfully implemented, it will further improve corporate governance and operation quality, and it is expected that the system will be reorganized.

The EPS for 2019-2021 is maintained at 4.

86/5.

47/6.

23 yuan, maintaining a target price of 70.

84 yuan, corresponding to 14 in 19 years.

6xPE, maintaining the overweight rating.

19H1 results basically met expectations.

19H1 company operating income 972.

9.7 billion (+6.

9%), net profit attributable to mother 137.

500 million (+7.

4%), gross margin 31.

0% (+1.

0pct), net interest rate 14.

1% (+0.

06pct).

2Q19 company operating income 567.

4.9 billion (+10.

4%), net profit attributable to mother 80.

7.8 billion (+11.

8%), gross margin 31.

3% (+1.

95pct), net interest rate 14.

2% (+0.

18pct).

The air-conditioning business grew steadily, and domestic appliances grew rapidly.

In 19H1, under the competition of other 南京桑拿网 air-conditioning brand’s cost-effective strategies, the company’s air-conditioning revenue increased by +4.

6%.

Channel control remains the same, with two years of advance receipts +49.

0%, accounts payable and notes ten years +73.

5%.

Benefiting from raw material dividends and product structure upgrades, the gross profit margin of the air-conditioning business is +1.

65 points.Household appliances were boosted by high-quality products such as Jinghong refrigerator and Dasong passion pot, and their income increased by +63.

6%, gross margin constant +11.

16 points.

The increase in the initial income consolidation exchange rate increased the financial expense rate of -0.

79 points to -1.

1%.

Waiting for the successful implementation of mixed reforms, stable growth performance can be expected.

Along with Gree’s continued promotion of modest promotions, the use of strong brands and manufacturing barriers, the company’s market share and performance growth are expected to pick up.

If the mixed reform is successfully implemented, it will further improve corporate governance and improve the quality of operations.

The company’s expected revenue in 2019 is expected to improve quarter by quarter, and the dividend rate is expected to increase again after the equity transfer is completed.

Core risks: Intensified competition in the industry and termination of the company’s equity transfer.

Vantage Co. (002035)： Real estate completion warms up and drives demand to improve channel diversification + category expansion leads contrarian expansion

Vantage Co. (002035): Real estate completion warms up and drives demand to improve channel diversification + category expansion leads contrarian expansion

Key points for investment: The kitchen appliance industry still has room to double in the long run, and the improvement in short-term real estate completion has driven demand to improve.

In the long run, there is still room for doubling the smoke stove industry, and the market penetration rate is not saturated: regional development is uneven, and new urbanization policies are expected to drive the rapid growth of smoke stoves in the central and western regions; guided by consumption upgrades and policy subsidies, low-tier citiesAnd rural volume and price still have room to improve.

In the short term, the gap between the new construction and completion of real estate in 2019 is expected to narrow, and the transaction rate of first- and second-tier commercial houses will pick up first. Attempts to sell kitchen appliances with a high dependence on real estate in the second half of the year will drive terminal demand to improve.

The optimization of the shareholding structure has promoted the improvement of operations, and high-end transformation has improved the competitiveness of the main business.

After the company’s annual change in 2015, the optimization of the equity structure effectively improved corporate governance, clearly changed high-end smart kitchen appliances, channel optimization and cost savings effectively enhanced the company’s profitability: 1) Brand upgrade: build high-end fashion brands, through flagship store construction and exclusive store renovationTo promote the upgrade of terminal image and innovative marketing methods; 2) product power: positioning high-end intelligence, driving product structure and price increase through technological innovation and new product transformation, narrowing the price difference with the right brand;Rectify dealers’ special sales policies, promote channel segmentation and refined management, and optimize channel relationships to drive the company’s gross sales gap.

Channel upgrade / sink will help the company maintain its channel advantage.

1) Channel upgrade: The effect of the second-tier channel upgrade is significant, and the market share has steadily increased. The first-tier continues to expand the size of KA. At present, the revenue share of first-tier and second-tier cities has increased from less than 40% to 50% in 2015.

2) Channel sinking: The company’s low-tier cities have a high channel coverage and a significant increase in market share. Among them, Black & Decker has a first-mover advantage, and its revenue in 18 years has increased by 13%.

3%, profitability and 北京夜生活网 single store efficiency have a comparative advantage.

3) Emerging channels: Online channels are growing faster than industry levels, accounting for 27% of revenue, which corresponds to industry levels and room for improvement; engineering channels ‘revenue in 2018 increased by 54.

5%, the proportion is rising rapidly. The trend of fine decoration of real estate on the third and fourth tiers in the future will help the company to leverage its channel advantages.

Expansion of categories to develop at a high speed and open up new space for growth.

Vantage Clear Gas Water Heater is the second major development category. The long-term development potential of the combustion category, the growth trend of natural gas production and supply is stable, and the third- and fourth-tier markets have become demand growth points.Large space, the advantages of the third- and fourth-line channels and the core advantages of the reorganized category of gas technology accumulation, and the rapid growth of revenue after the independence of the combustion sales system.

In addition, the company established Vantage Home brand to enter the whole house customization, the cabinet business revenue in 2018 increased by 61%, combined with multi-category layout to create an overall solution, is expected to contribute new growth in the future.

Profit forecast and investment rating.

We expect the company’s expected earnings for 2019-2021 to be zero.

90, 1.

05 and 1.

22 yuan, corresponding to dynamic P / E ratios of 14 times, 12 times and 10 times. Driven by the company’s high-end conversion process and new category increments, we believe that the company’s reasonable valuation PE in 2019 is 17 times-20 times, and the corresponding target is ahead of time.15.

3-18.

0 yuan, compared with the current expected increase of 22% -44%, the first coverage given a “buy” investment rating.

risk warning.

The recovery of real estate completion was worse than expected; industry demand continued to be sluggish, triggering an overall price war.

Meiya Optoelectronics (002690)： Broad prospects for oral CT, coordinated development and growth

Meiya Optoelectronics (002690): Broad prospects for oral CT, coordinated development and growth
2018 revenue 12.4 billion / year +13.33%, net profit attributable to mother 4.48 ppm / year +22.82% of companies released annual report: 2018 revenue 12.4 billion / year +13.33%, net profit attributable to mother 4.48 ppm / year +22.82%, slightly exceeding market expectations.Q1-Q4 revenue was 1.55 billion / year +0.65%, 3.36 billion +14 per year.29%, 3.69 billion yuan / + 12.84%, 3.7.9 billion +19 per year.18%, net profit attributable to mother 0.43 billion / year +4.88%, 1.26 billion / year +24.75%, 1.50 billion / + 25.00%, 1.28 billion / + 24.27%, with an average gross profit margin of 54.94%, net interest rate 36.11%, of which the gross margin of oral CT products is 59.65%.The company’s EPS for 2019-2021 is expected to be 0.80, 0.98, 1.20 yuan. The medical device industry has broad development space, and the oral CBCT market has great potential. According to wind data, from 2001 to 2017, the domestic medical device industry market has grown from US $ 179 to 445 billion.86% (50% of global budget).Dental CBCT uses dental implants. The annual number of dental implants from 2011 to 2017 increased from 130,000 to nearly 2 million, with a compound growth rate of 57.71%, but the CBCT penetration rate in mainland 西安耍耍网 China in 2017 was only 7-15%, and downstream demand was strong.In the field of oral CT, the company mainly competes with foreign manufacturers. In the future, it will expand its products in orthopedics, otolaryngology and other fields, and open up room for growth in high-end medical imaging equipment. In 2018, the company’s color sorter products, oral CBCT products, and X-ray industrial inspection machines achieved revenue and leapfrogging growth of 8 respectively.100,000 yuan / year +5.94%, 3.7.1 billion + 42 per year.65%, 0.46 ‰ / yo-17.93%.The net cash flow from operating activities of the company in 2018 was 4.2.3 billion -4 per year.14%, too much cash flow.R & D funding is 0.6.6 billion + 22 per year.17%, R & D projects focus on core technologies for optoelectronic identification; selling expenses1.70 ppm / year +18.12%. The 重庆夜生活网 reason for the increase in selling expenses was market expansion. In 2018, the proportion of sales at home and abroad was 81.49%, 18.51%. Pre-heating of chair-side equipment is listed. The overseas market of color sorters is expected to warm up. CAD / CAM in the chair-side repair system is ready. Currently, market preparation and pre-heating publicity are being carried out. It is expected that it will bring more revenue growth in 2020.The color sorter business accounted for 65% of total revenue in 2018.37% is the company’s core revenue source, but affected by the pressure of price cuts to seize the vicious competition in the market, the expansion rate of overseas markets has improved.In view of the unsustainable mode of price competition, overseas markets are still the main driving force for growth, and market conditions are expected to improve in the future. Leading companies in the field of optoelectronic identification maintain their “overweight” rating. In 2018, the company ‘s oral CT product gross profit margin increased. Through the increase in oral CT product revenue share and scale effect, its gross profit margin remained unchanged, so it raised its profit forecast.It is estimated that the company’s net profit attributable to its parent in 2019-2021 will be 5.4.4 billion / 6.6 billion / 8.13 ppm (previous value was 5 for 2019-2020).10/6.580,000 yuan), the previous budget was 21.39%, 21.34%, 23.20%.The corresponding EPS is 0.80/0.98/1.20 yuan (previous value was 0 for 2019-2020).75/0.97 yuan).Taking into account the company’s leading parts and the business layout of the dental field, refer to the 2019 average PE change of comparable companies.51, giving the 2019 PE35?40x, corresponding to a target price of 28.00?32.00 yuan, maintaining the “overweight” level. Risk warning: there is pressure in overseas markets, expansion is less than expected, and industry demand growth is lower than expected.

Alcoholic Beverage (000799)： The initial change in revenue due to stock suspension still needs to be more thorough

Alcoholic Beverage (000799): The initial change in revenue due to stock suspension still needs to be more thorough
The company’s third quarter was affected by the suspension of the sub-high-end 合肥夜网 alcoholics series, and its revenue was significantly reduced. Under the background of intensified sub-high-end competition, expenses increased, and online brand construction continued to expand. The sales expense rate increased and profits were maximized.The core of the future profit improvement will still determine its management team’s ability to execute. Against the background of the current industry’s positive squeeze, it is recommended to adhere to brand expenses, strengthen the protection of channel interests, and expect changes. We adjusted the EPS forecast for 19-21 to 0.82, 1.02 and 1.25 yuan, temporarily maintain the “prudent recommendation-A” investment rating. The revenue from the second high-end stock suspension increased significantly month-on-month, and single-quarter profit increased significantly.The company’s revenue in the first three quarters was 9.6.8 billion yuan, net profit attributable to mothers1.8.4 billion, net of non-net profit1.8.3 billion, an increase of 27 each year.3%, 14.3%, 28.2%.Of which 19Q3 single quarter income2.590,000 yuan, an increase of 9.5%, net profit attributable to mother is 2817.70,000 yuan, deducting non-net profit of 2856.30,000 yuan, a decrease of 39.5% and 27.8%.The revenue end of the chain increased significantly, mainly because the sub-high-end alcoholic series is to digest high inventory, and it will be discontinued in the third quarter.To more than 2 months.The substantial fluctuation of the profit end of a single quarter is mainly affected by the increase in expenses, causing the profit volume to decrease the next fluctuation.In terms of cash flow, 19Q3 repayments increased by 50.2%, which is considered to be the contribution of internal reference franchise companies. Under the high-end remodeling, the gross profit margin increased slightly, and the sales expense ratio increased significantly.2%, significantly suppressing profitability.Q3 gross margin slightly increased by 0.9pct to 77.6%, high-end internal reference volume drives gross profit margin.Although the high-end internal reference has expanded offline expenses under the brand franchise model, it is expected that the sub-high-end alcoholic series will face increased price competition and increased expenses. At the same time, the online release continues every year, exceeding the growth, and the single-quarter sales expense ratioSignificantly improved 10.2 pieces to 37.5%, suppressing profitability, net interest rate fell 8.8 pieces to 10.9%. Strategy execution capability is still the core to determine the sustainability and magnitude of future improvements. We should insist on brand expense and safeguard channel benefits.We have objectively analyzed the advantages and disadvantages of the current reform ideas and solutions of Jiujii Jiu in the review report “High-end reshaping to promote high growth in the future”, which is to restore the advantages of rapid volume in the early stage and internal brand strength.It is easy to drive short-term growth, but the severity of management will inevitably increase after the increase in the number of franchised institutions. In addition, the reform will be deepened to the sub-high-end alcoholics series. To be clarified, the problem will be more complicated.It also tests the team’s ability to execute.In the context of the current intensified competition in the second high-end price band, the result of the positive squeeze is naturally an increase in the expense ratio. We believe that the company must continue to put in expenses and expand consumer brand reputation.In addition, the channel budget must gradually increase the actual mode of operation of pressing the goods-stop the goods and replace the goods with different products, and effectively protect the interests of the dealers, and gradually improve the reputation of the channel. This is the basis for solidifying the market in the province.This port, Xu Tu national breakthrough. We lower our profit forecast and expect growth, and temporarily maintain the level of “Prudent Recommendation-A”.In the third quarter, due to the suspension of the sub-high-end alcoholics series, the company’s revenue decreased significantly. Under the background of intensified sub-high-end competition, expenses increased. At the same time, online brand building continued to expand, and the sales expense ratio increased, suppressing 四川耍耍网 profitability.The core of future profit improvement will still determine the management team’s ability to adapt and execute, and how to expect changes.Based on the company’s current development stage and the background of intensified price band competition, we lowered our EPS forecast for 19-21 to 0.82, 1.02 and 1.25 yuan (last time 0.90, 1.16 and 1.44 yuan), temporarily maintain the “prudent recommendation-A” investment rating. Risk reminder: overdrafts will be oversold after the internal reference volume is rapidly increased, competition in the next high-end price band will intensify, and channel reform will be less than expected

Baoxin Software (600845)： The acquisition of Wuhan Iron and Steel’s industrial technology software continues to increase

Baoxin Software (600845): The acquisition of Wuhan Iron and Steel’s industrial technology software continues to increase

Investment Highlights Announcement Summary: The company’s board of directors approved the “Acquisition of WISCO Industrial Technology Group Equity and Related Party Associated Transactions”.
.

Acquired 100% equity of Wuhan Iron & Steel Engineering Technology Group Co., Ltd. held by Wuhan Iron and Steel Group Co., Ltd. for $ 9.2 billion.

WISCO Group is a related company of the company, and this transaction constitutes a related party transaction.

　　Acquisition of Wuhan Iron and Steel Information Technology Subsidiary to supplement human resources and increase regional market share.

WISCO Industrial Technology is a wholly-owned information technology subsidiary of WISCO Group. Its main business is software development, information services, software extension projects and system integration projects.

As of December 31, 2018, the total assets of WISCO Industrial Technology12.

24 trillion, total debt 8.

9.3 billion, net assets 2.

830,000 yuan; 2018 operating income3.

8.4 billion, net profit -2.

2.9 billion.

After the merger of Baowu Group, WISCO’s integrated information system must be unified with Baosteel, and its system upgrade has increased the scale of Baoxin’s software business.

The issue effectively solved the problem of competition in the industry. By integrating with WISCO Industrial Technology in business and personnel, it reduced the cost of Baoxin Software’s related business in Wuhan and helped Baoxin Software increase its regional market share.Strengthen 夜来香体验网 regional markets and improve customer experience.

By improving the overall technical capabilities and management level of WISCO’s industrial and technical team, we expect its initial business unit to turn a profit this year.

　　Baowu Group continued to integrate acquisitions, and Baoxin Software became a leader in smart manufacturing.

After Baowu’s merger, it recently acquired Magang for the first time.

According to the data of the China Iron and Steel Association, the crude steel output of Baowu and Maanshan Iron and Steel Group in 2018 were 6,743 meters and 1964 meters, respectively, with a total of 8707 joints.The gap has further narrowed.

According to the Baowu Group’s capacity planning roadmap, a steel boutique and intelligent manufacturing service provider with a production capacity of nearly 100 million tons built 佛山桑拿网 in 2021 will be expected to become the world’s largest steel group.

Baoxin Software focuses on promoting the optimization and upgrading of manufacturing of iron and steel enterprises. It has the largest market share in the steel field in products and services such as MES, EMS, cold rolling, operation and maintenance services.

The company’s steel informatization market share will be transformed into the promotion of Baowu Group, and will be radiated to other industries.

　　R & D funding in 2018 5.

5.1 billion, with R & D revenue accounting for 10.

07%, through increased research and development, actively explore the construction of a smart manufacturing system that integrates smart equipment, smart factories, and smart operations to help China’s manufacturing companies transform and upgrade and continue to maintain the leading system of smart manufacturing.

The annual report business plan clearly proposes that by seeking opportunities for mergers and acquisitions of leading enterprises in the industry, expand the scope of existing smart manufacturing businesses, benchmark the world’s advanced counterparts, and improve overall competitiveness.

　　The data center business is distributed to the national market.

The Shanghai Data Center planning guidelines were issued. In principle, the existing industrial areas outside the outer ring were selected. The scale of each project reached 3000-5000 and the PUE was less than 1.
.

3. The number of new racks will be controlled at 60,000 by 2020.

The reporting entity is required to have large-scale operation experience and long-term stable operation and service capabilities in Shanghai.

The fourth phase of the company’s Shanghai Baozhiyun IDC was gradually delivered as planned, and the total of the three phases of 300 million + standard cabinets will be successively delivered and operated, forming an output value of about 2 billion.

　　Baoxin Wuhan IDC Central District plans to build 18,000 20A cabinets in three phases. After completion, it will become the largest single-data and cloud computing center in Central China.

In 2019/2021/2023, we plan to invest about 2,000 / 6,000 / 10,000 standard cabinets.

Wuhan is the first step of the company’s IDC business out of Shanghai and into the country.

Core city data center customers have strong demand, but the indicators are strictly controlled. Core cities have sustainable and stable load conditions, land consumption costs, large-scale, and centralized data center location will become scarce resources.

We expect that the company will combine Baowu Group’s resource advantages and its own technology operation capabilities to conduct business expansion around Shanghai and other core cities.

　　Investment suggestion: Baoxin Software is a leader in steel informatization and a leading manufacturer of smart manufacturing to help China’s manufacturing industry transform and upgrade.

Break through the advantage of scarce resources of Baowu Group and its own informatization capabilities, rapidly develop IDC business, and become the leader of third-party data centers in East China and even the country.
As a pioneer in the reform of Shanghai’s state-owned enterprises, implement a long-term equity incentive mechanism to stimulate corporate vitality.

We expect the company’s net profit for 2019-2021 to be 8.
5.1 billion / 11.

2.7 billion / 14.

2.4 billion, EPS is 0.

97 yuan / 1.

28 yuan / 1.

62 yuan, maintain “buy” investment rating.

　　Risk reminder events: Risks that exceed the expected risks in the construction of information technology investment in the steel industry.

Taiji shares (002368)： business transformation is steadily advancing but short-term profits are under pressure

Taiji shares (002368): business transformation is steadily advancing but short-term profits are under pressure

Results review The first half of 2019 results are lower than we expected Tai Chi shares announced the first half of 2019 results: operating income increased and growth11.

8% to 30.

1 ppm; gross profit increased by 41 in ten years.

9% to 7.

1 ‰, gross profit margin increased by 4 in the short term.

7 excellent to 23.

5%; net profit attributable to mothers increases by 7 per year.

1% to 21.48 million yuan, lower than our expectations6.

9%, mainly due to the apparent increase in the company’s business transition expense ratio.

　　The development trend focuses on the area of advantageous government affairs, and deeply cultivates the application of key industries.

The company maintains its advantages in the field of government and enterprise informatization and deeply cultivates customer needs. In the first half of 2019, government revenue increased by 59 per year.

3%, accounting for 51.

1% (up 15 a year.

3 averages).

The revenue boost in the government sector was driven by the abundant downstream orders. The company won the bid for the construction of the national government’s “Internet + supervision” application system and went online for trial operation in the second quarter.

The company has undertaken a number of government affairs system construction projects such as transportation, medical insurance, security, civil affairs, and meteorology.

In the field of enterprise informatization, the company independently researches and develops the TECO industrial Internet platform and establishes cooperation with leading companies in the energy, steel, coal, communications, and transportation industries.

The company’s newly signed contracts in the first half of the year exceeded US $ 5 billion (an increase of about 15% per year), which provided a guarantee for the steady growth of future revenue.

　　Innovation promotes traditional business cloud transformation, and rapid development of network security and smart application services.

In the first half of the year, the revenue of traditional system integration business decreased by at least 7.

1%.

Cloud services revenue grows by 10 per year.

1% (accounting for about 7% of the receipt). The government cloud business covers Beijing, Hainan, Shanxi, Tianjin, etc. Among them, Beijing customers have entered the cloud system with a market share of about 60%. The company is actively replicating the Beijing development model in other provinces.

The company’s network security and smart application revenues increase by 46 per year.

2% / 43.

5%, accounting for 22% of revenue.

5% / 20.

At 7%, a new cornerstone of business was initially formed, of which the revenue of the NPC Jincang database business of the subsidiary increased by over 50% each year.

　　The company’s new business is still in a transition period, and the cost increase is obvious.

Benefiting from the business benefits of low-margin system integration, high-margin smart applications, and cloud services, the gross profit margin improved in the first half of the year.

However, the company is in the early stage of new business. In the first half of the year, sales expenses increased by 121% annually, mainly due to the growth of market expansion personnel; R & D expenses increased by 272%, mainly due to increased investment in new project development. We believe that revenue growth is expected to accelerate in the second half of the year.The increase in R & D expenditure has significantly increased the expense side, and the short-term profit margin may continue to be under pressure.

　　Earnings Forecasts and Estimates We revise down revenue for 2019/20201.

9% / 3.

4% and net 重庆耍耍网 profit 8.

5% / 15.

7%, due to the uncertainty of new business transformation, the increase in expense ratio dragged down profits.

It currently corresponds to a 35x 2019 P / E ratio.

Maintain Outperform rating but lower target price by 8.1% to 34.

0 yuan, corresponding to 40 times the 2019 price-earnings ratio, which is 15 last year.

8% upside.

　　The risk cloud business transformation was worse than expected.

CIMC Group (000039) 2018 Annual Report Comments： Large Dividends Reveal Leading Confidence and Profitability Promote Recovery

CIMC Group (000039) 2018 Annual Report Comments: Large Dividends Reveal Leading Confidence and Profitability Promote Recovery

This report reads: It is expected that in 19 years, the container will drop slightly, the growth rate of vehicles will increase, the energy equipment will be booming, and the overall revenue will grow steadily. Offshore engineering plans to improve asset quality, increase profit margins and bottom out, and the large dividends show consensus.

Investment Highlights: Conclusion: The company’s 18-year revenue and net profit attributable to its 四川耍耍网 parent were 935/33 respectively.

8 billion, an increase of 22.

5% / 34.

72%, of which the deducted non-net profit 22.

6 billion, an increase of 65.

2%, the proposed cash dividend is 0.

55 yuan / share (including tax), 2 shares for every 10 shares.

In line with expectations.

Based on the non-recurring profit and loss uncertainty, the EPS for 2019-20 is reduced to 0.

9 (-0.

11) / 1.

03 (-0.

06) Yuan, plus 21 years of EPS 1.

13 yuan, with reference to the average valuation of the industry, taking into account the asset quality improvement after large withdrawals, bottoming out profit margins, and the premium caused by land revaluation, the target price is raised to 18 yuan, corresponding to 20 times PE in 19 years, an increasehold.

The overall income is expected to grow steadily, and large dividends demonstrate confidence.

18 years of container, vehicle, energy, airport revenue of 315/244/142/47 billion, an increase of 25.

9% / 25% / 19.

6% / 29.

9%.

Looking forward to 19 years, it is expected that the volume of dry cargo containers, cold containers and special containers will continue to increase, and the overall container will decrease slightly; the impact of vehicle governance will be reduced, and the overall growth rate will reach 5-10%;Fast growth.

Revenue is expected to grow steadily in 19 years.

The 18-year cash dividend ratio is close to 50%, which is a significant increase from the previous, indicating the understanding of shareholder returns and confidence in the future.

Offshore made provisions to improve asset quality, and profit margins bottomed out.

18 year net profit of the container segment 18.

9 billion, after deducting part of the Qingdao cold box demolition funds, the actual net interest rate is 3.

About 2% (total about 2.

6 pct), a record low, mainly due to intensified downstream competition, unable to raise environmental protection requirements, and the costs caused by changes in steel prices to the downstream.

Offshore is expected to be 34 in 18 years.

500 million, of which 21 is impaired.

600 million, accounting for 7% of the total assets of offshore engineering. After accrual, the quality of assets will be improved. It is expected that the profit margin will rebound in 19 years.

Land income continued to increase performance, and revaluation increased margin of safety.

18-year asset disposal income (mainly land income) 52.

400 million, 成都桑拿网 most of which are included in recurring projects, and it is expected that the performance will continue to increase in the future.

Risk Warning: Global economic recession and global trade contraction.

Jianfa (600153) Interim Review： Supply Chain Business Steady Growth Real Estate Sales Exceed Expectations

Jianfa (600153) Interim Review: Supply Chain Business Steady Growth Real Estate Sales Exceed Expectations

Investment suggestion: The company’s supply chain business remains stable, real estate business achieves rapid growth, and outstanding financing capabilities and high-quality land resources in the future will help form long-term competitive advantages.

EPS is expected to be 1 in 19/20/21.

93/2.

20/2.

44 yuan, corresponding to the current total PE is 4.

3/3.

8/3.

4x; the company currently underestimates, has high dividends, and has growth. It gives a target price of 12 yuan and maintains a “strong recommendation-A” rating.

　　The company announced the 19-year interim report: 夜来香体验网 Jianfa’s 19-year H1 realized revenue of 1278.

3.4 billion (+10.

60%), net profit attributable to mother 13.

7.7 billion (+16.

03%) net profit after deducting non-attribution is 11.

6 billion (+19.

75% year-on-year growth), with an expected ROE of 5% (+0.

1pcts), the basic EPS is 0.

49 (+16.

67%).

　　The supply chain business maintained steady growth, and sales receipts accelerated to continue to increase cash flow.

Due to the high prices of commodities in 17 and 18, a high base led to the increase in revenue in the first half of 19, so the revenue of the supply chain business in 19H1 achieved 1181.

3.7 billion (+9.

96%).

However, the company insists on professional operation, the core varieties continue to grow, and the revenue of metallurgical raw materials still achieves a growth rate of about 20% under 失败:重查 the base of physics.

In addition, the business continued to contribute to operating cash flow due to the relatively fast repayment of supply chain sales.

　　Adhering to refined operations, the real estate business has grown for ten years.

twenty one%.

In 19 years, the real estate industry strengthened the macro scale, and the sales growth rate of the industry increased. However, the company insisted on fine operation and promoted the continuous growth of sales scale.

　　In the first half of 19, the real estate business achieved revenue of 76.

1.3 billion, +19 a year.

21%, of which the contract / equity sales amount increases by 14 each year.

46% / 32.

49%, both higher than the growth rate of sales of commercial housing in the country over the same period.

　　The reported company supplemented 21 cases of land through various methods, and the unsold land reserves reached 1599.

860,000 square meters, high-quality soil storage provides long-term support for future real estate business development.

　　Asset disposal increases profits 1.

3.8 billion, low financing costs provide financial advantages for real estate development.

In the first half of the year, Jianfa Real Estate withdrew from the Shenzhen Longhu Villa project and contributed nearly 1 net profit to its mother.

3.8 billion, accounting for about 10%.　　The strength of the company’s credit group has the ability to obtain financing through multiple channels. At the end of the reporting period, the average financing cost of real estate subsidiaries was about 4.

5-6 percent.

The company has excellent fund management, and its budget debts are paid on time, forming a virtuous circle of credit. The resulting financing advantages will help the real estate business continue to advance.

　　Risk warning: real estate pricing policy tightens, real estate sales fall short of expectations