Sinopharm Uniform (000028) 2019 Third Quarterly Report Review: Performance Meets Expectations, Batch and Zero Integration, Synergistic Advantages Obvious

Sinopharm Uniform (000028) 2019 Third Quarterly Report Review: Performance Meets Expectations, Batch and Zero Integration, Synergistic Advantages Obvious

Company dynamics The company released the third quarter report of 2019.

  Matters commented that the performance was in line with expectations, and the profit growth rate was improved compared with the first half of the year. The company achieved revenue of 388 in the first three quarters of 2019.

$ 76 trillion, an increase of 22 per year.

38%; realized net profit attributable to mother 9.

6.2 billion, an annual increase of 3.

79%; net profit deducted from non-attributed mothers9.

4.3 billion, an annual increase of 4.

14%, the rapid growth of profits is lower than the absolute growth rate of income is the increase in financial costs caused by changes in accounting policies, the holding subsidiary NUS Pharmacy’s value-added expansion funds and mergers and acquisitions warbolian led to the increase in minority shareholders’ profit and lossAnd other factors.

By quarter, the company achieved revenue of 136 in Q3 2019.

48ppm, an increase of 24 per year.

21%; net profit attributable to mothers3.

11 trillion, an increase of 9 in ten years.

14%; net profit deducted from non-attributed mothers3.

3.0 billion, an annual increase of 7.

45%, in line with market expectations.

The annual growth rate of the company’s profit margin at the end of 19Q3 has improved compared with the first half of the year. It is expected that the impact of the dilution of NUS Pharmacy’s equity on minority shareholders’ profits and losses will be gradually eliminated (the completion of industrial and commercial registration at the end of June 2018).

  During the period, the expense ratio was well controlled, deepening the integration of wholesale and integrated resources, and operating efficiency continued 四川耍耍网 to improve. The company’s gross profit margin for the first three quarters of 2019 was 10.

82%, a decline of 0 every year.

The 67 budgets are expected to be mainly due to factors such as the adjustment of the retail business income structure.

Company expenses during the first three quarters of 20197.

67%, a decrease of 0 per year.

44 totals, of which 5 are sales expenses.

78%, a decrease of 0 per year.

38 budgets, overhead costs1.

51%, a decrease of 0 every year.

19 budgets, 0 for financial expenses.

38%, rising by 0 every year.

13 averages.

The company’s net operating cash flow for the first three quarters of 2019 was 10.

7.3 billion, an annual increase of 90.

24%, a significant improvement every year.

The company’s inventory turnover reset in the first three quarters of 20197.

17 times, a year-on-南京夜网论坛year increase of 0.

49 times.

In 19H1, the company started the overall logistics planning of zero-totals, which promoted synergistic sales and high-speed growth while optimizing the integration of resources.

  Risk warnings: industry policy risks such as the two-vote system; risks of DTP business growth slower than expected; integration after asset restructuring is completed, management is less than expected risks; NUS pharmacy performance is less than expected risk investment recommendations for the next six months, maintaining “prudent value appreciationThe “Hold” rating is expected to give the company an EPS of 3 in 19 and 20 years.

01, 3.

39 yuan, with a closing price of 45 on October 23.90 yuan calculation, dynamic PE is 14 respectively.

94 times and 13.

28 times.

We believe that as the two leading pharmaceutical distribution companies in the wide area, the distribution business has a competitive advantage in terms of terminal coverage and logistics network construction. After absorbing the influence of policies such as the “two-vote system”, the company’s market share will gradually increase, and distribution revenue will increase.Accelerate the expected recovery; reorganization, the retail business NUS Pharmacy is expected to improve the operation level and profitability of NUS Pharmacy after the date of the war. The increase in the net interest rate is conducive to the continued release of performance and drive the company’s overall performance to grow steadily.

In the next six months, we will maintain a “cautious increase” rating.

Suzhou Keda (603660): Q1 performance is in line with expectations

Suzhou Keda (603660): Q1 performance is in line with expectations
This 杭州桑拿 report reads: Suzhou Kodak released the first quarter of 2019 report. In the first quarter of 2019, revenue increased 21% and net profit increased 28%. The company’s performance was in line with expectations. The prosperity of the video conferencing industry and the strong competition of the company promoted rapid growth. Investment Highlights: Maintain “Overweight” rating and target price unchanged at 32 yuan.The forecasted operating income for 2019 and 2020 will remain unchanged at 25 respectively.6.9 billion, 28.26 trillion, increase EPS to 1.09 (+1.87%), 1.29 (+0.78%). Considering the continuous increase in demand for video conferencing, it is estimated that the operating income in 2021 will be 35.330,000 yuan, EPS1.67 yuan.With reference to the estimates of comparable companies, considering that the company’s R & D expenditure level exceeds the industry average, the “AI + Big Data” strategy accelerates the company’s commercialization process, and the demand for the video conferencing industry increases. Suzhou Keda is given a 29x 2019 estimate and maintains a target price of 32Yuan, maintaining the “overweight” rating. The Q1 2019 results were in line with expectations, and the overall gross profit margin continued to rise.In Q1 2019, the company achieved operating income5.66 ppm, an annual increase of 21%, achieving a net profit of 0.50 ppm, a year-on-year increase of 28%, and performance was in line with expectations.The company’s Q1 gross profit margin reached 64 in 2019.09%, an increase of 3.63%, the software and hardware integrated video conferencing solution guarantees that the company’s profit space continues to expand and the industry’s leading position is further defined. “AI + Big Data” empowers customers in multiple industries, and industry prosperity and strong competitiveness have contributed to the continued high growth in performance.The company has proposed the “AI + Big Data” strategy to advance the actual combat of AI and big data from the two goals of depth and breadth, enabling the front-end, big data platform, big data display and other multi-scenario customers.The video conferencing industry continues to prosper under the favorable conditions of “5G + smart party building + government video conference market sinking + education + medical care”. The company maintains a high R & D advantage, a high gross profit solution advantage, a public inspection customer advantage, and high performance and sustainable growth. Catalyst: The video conferencing business has developed smoothly in other industries, and the government has stepped up investment in security. risk warning.The development of video conferencing channels fell short of expectations, and Huawei gained market share.

Texhong (002419) Semi-annual Report Commentary: Don’t be afraid to challenge steady development

Texhong (002419) Semi-annual Report Commentary: Don’t be afraid to challenge steady development

Event: Release of semi-annual report, revenue of $ 9.6 billion, an increase of 1.

61%, profit 6.

4.6 billion, an increase of 4.


The industry is facing a low-speed challenge in the first half of 2019, and the total 深圳桑拿网 social retail sales will increase by 8%.

4%, by retail format, the retail sales of supermarkets, department stores, specialty stores and specialty stores increased over the same period of the previous year.

4%, 1.

5%, 5.

3% and 3.


But online retail sales amounted to 48161 billion yuan, an increase of 17 per year.

8%, accounting for 19% of total retail sales of consumer goods.


The physical department store industry further fell into a downturn, and the company’s revenue increased by 1 in the first half.

6% is only a reflection of the overall downturn in the industry.

Three strategies to promote transformation Facing industry challenges, the company embraces the new retail era of O2O online and offline integration, and promotes transformation with three major strategies of digitalization, experience, and supply chain.

Strengthening digital customer reach and insight, more than 8,000 people interacted to obtain information or consumption through the Rainbow App and Rainbow Mini Program; strengthened experiential upgrades, thickened the service value and differentiated characteristics of stores, and promoted the integration of national supply chains, which promotedThe company’s revenue in food, catering and entertainment, daily necessities, etc. has increased significantly.

Building a shopping mall on format expansion Shopping malls are the first choice for consumer experiential consumption. They are home to consumers in pursuit of new life experiences and social activities. They have experience advantages that e-commerce cannot replace.

Therefore, based on 15 shopping malls, 68 department stores, 82 supermarkets, and 152 convenience stores, the company focused on the expansion of its business format, and opened two new stores in Guangdong and Jiangxi in the first half of the year.The shopping center, a shared center focusing on happy hour and family life, is expected to become a new growth point in the future.

Earnings 深圳桑拿网 forecast and investment prospects are based on the reality of the industry downturn and the company’s low-speed growth in the first half of the year. We expect the company’s long-term revenue to grow2.

5%, expected revenue is estimated at 19.6 billion, and expected profit is 9.

400 million, budget income 0.

79 yuan, 15 times of dynamic assessment, preliminary estimation of recommendation level.

Risks suggest that retail growth continues to decrease, and e-commerce pressure continues to deepen

Boss Electric (002508) Interim Report Comments: High-speed Growth of Engineering Channel Performance Evaluation Doubles Bottoms

Boss Electric (002508) Interim Report Comments: High-speed Growth of Engineering Channel Performance Evaluation Doubles Bottoms
Boss Electric disclosed the 2019 semi-annual financial report.The company achieved revenue of 35 in the first half of the year.27 ppm, an increase of 0 in ten years.88%, realized net profit attributable to mother 6.70 ppm, an increase of ten years.52%; of which, the second quarter achieved revenue of 18.67 ppm, 10-year average1.98%, net profit attributable to mothers3.51 ppm, 10-year average2.11%.The company expects that net profit attributable to mothers will increase by 2% -10% in the first three quarters of 2019, corresponding to a growth rate of 2 in the third quarter.9% -26.The 0% smoke stove fluctuated slightly, and the oven was growing against the trend.Range hoods and gas stoves achieved revenue in the first half of the year.8.4 billion and 8.50 ppm, a decrease of 1 each year.11% and 1.74%, accounting for 53% and 24% of revenue; disinfection cabinet / steamer / oven / oven / water purifier / microwave oven drying growth rate is +8.71% /-9.14% /-28.30% / + 21.22% /-10.75% /-47.At 11%, dishwashers have grown significantly after achieving self-production. In terms of different channels, the engineering channels increased significantly than expected.The engineering channel increased significantly by 80%, accounting for about 15%. According to Aowei data, the company’s range hood has a market share of 37 in the decoration industry.8%, ranking first; retail channels, affected by the industry ‘s economic downturn and agents ‘enthusiasm for replacement of goods, retail channels (including KA and specialty stores) to 15%; e-commerce channels increased 2%; innovative channelsIn-depth cooperation with cabinet companies and home improvement companies, a substantial increase of 50% a year. The gross profit margin increased, and the expenses stabilized.Thanks to the decline in raw material prices and the incremental reduction, the overall gross profit margin increased by 1.24pct to 54.66%, of which the gross profit margin of range hoods and gas stoves increased by 3 respectively.48 and 2.24pct to 58.54% and 55.88%.The sales expense ratio increased slightly by 0.48 points to 28.07%, the management expense ratio decreased slightly by 0.28 to 3.29%, R & D expenses decreased slightly by 2% to 1.08 thousand yuan.Net margin increased by 0.32pct to 19.20% inventory control is good, channel inventory decline.At the end of June, the inventory balance decreased slightly by 1.68% to 12.16 trillion, of which the surplus of raw materials increased by 90.75% to 1.120,000 yuan, the inventory of goods fell by 19.15% to 2.3.4 billion, issued goods fell 14.08% to 7.76 ppm. In the first half of the year, due to the excessive downturn at the retail end, the company also controlled the production and expansion progress, and the channel inventory was smoothly de-allocated.Accounts receivable increased by 16.95%, 苏州桑拿网 turnover days increased by 3 for decades.6 days to 23.93 days, mainly due to the substantial increase in engineering channel revenue.The ratio of operating cash inflows to revenues was 102%, a decrease of 20 per year.39 points. Earnings forecasts and investment advice.It is expected that with the recovery in real estate completion, the demand for kitchen appliances will usher in recovery. We expect the company’s EPS to be 1 in 19/20/21.69/1.97/2.21, currently expected to correspond to 19/20/21 PE is 15/13/12 times.Taking into account the company’s top and the expected completion of real estate recovery, we give the company 20-25 times PE, corresponding to a target price of 33.8-42.4 yuan, maintain “Buy” rating. Risk warning: Completion recovery is later than expected, industry competition intensifies, and raw material prices fluctuate

Cree Electromechanical (603960): Some large orders delivered results in line with expectations

Cree Electromechanical (603960): Some large orders delivered results in line with expectations

This report reads: The company benefited from the continuous deep cultivation of Bosch Department and Shanghai Zhongyuan’s consolidation. In Q1 2019, it achieved operating income1.

6.2 billion, an increase of 70 in ten years.

57%, ample orders in hand.

Maintain “overweight” level and maintain target price of 30.

44 yuan investment highlights: The company’s 2019 Q1 performance is in line with expectations. At present, there are ample orders in hand, maintaining the “overweight” rating and maintaining a target price of 30.

44 yuan.

The flexible automated industrial robot system business benefited from the deep cultivation of the Bosch Department, and the company achieved revenue in Q1 of 20191.

62 ppm, an increase of 70 in ten years.

57%, net profit attributable to mothers was 2厦门夜网4.05 million yuan, a year-on-year increase of 62.

03%, performance is in line with expectations.

The company’s headquarters achieved rapid growth. The subsidiary Shanghai Zhongyuan still faced the amortization of M & A intermediary expenses and the impact of minority shareholders’ equity, which contributed to changes in the company’s consolidated statements. In the future, the amortization of M & A intermediary fee amortization ended, and the subsidiary’s contribution to the company’s overall performance increased.

Maintain the expected EPS for 2019-2021 to be 0.

62, 0.

83, 1.

11 yuan, taking into account the sufficient order and the cost impact of mergers and acquisitions to reduce the impact of new products into customer trials, the company maintains the “overweight” level, maintaining a target price of 30.

44 yuan, 天津夜网 corresponding to 19 times PE49.

The company’s flexible automation industrial robot business actively embraces new energy automotive electronics and has ample orders in hand.

The company’s new chronic single 4 in 2018.

US $ 7.8 billion. Newly signed contracts focus on new energy automotive electronics (motors, electrical controls, energy recovery, etc.), with abundant orders in hand.

The company achieved revenue 1 in Q1 2019.

62 ppm, an increase of 70 in ten years.

57%, net profit attributable to mothers was 24.05 million yuan, a year-on-year increase of 62.


Shanghai Zhongyuan’s overall performance contribution is small, and its contribution will gradually expand in the future.

The listed Zhongyuan’s fuel dispenser sales in 2018 were 250.

750,000 pieces, fuel pipe sales of 182.

180,000 pieces of cooling water pipes sold for 358.

800,000 pieces, achieving operating income2.

6.8 billion yuan, net profit of 2425 million yuan, fulfilled performance commitments, and estimated revenue of approximately 60 million yuan in Q1 2019. Considering the amortization of M & A intermediary fees and minority shareholders’ equity, the current contribution of Shanghai Zhongyuan to the company’s net profit will decrease, and M & A expenses will be reduced in the futureWhen the amortization ends, its contribution to the company’s performance will increase significantly.

Catalyst: Shanghai Zhongyuan’s performance release, Bosch related large orders landing risk reminder: less than expected production capacity, less than expected revenue recognition

Jihong Shares (002803) 2018 Annual Report & 2019Q1 Review: Synchronous and High Growth of Cash Flow and Optimistic Marketing and Packaging

Jihong Shares (002803) 2018 Annual Report & 2019Q1 Review: Synchronous and High Growth of Cash Flow and Optimistic Marketing and Packaging

Endogenous + epitaxy drives rapid growth in performance.

2018 initially achieved operating income22.

69 trillion, +100 for ten years.

34%; net profit attributable to mother 2.

1.3 billion, +166 a year.


The company announced a dividend distribution plan for 2018, and distributed a cash dividend of 5 yuan (including tax) to all shareholders for every 10 shares, totaling a cash dividend of 98.6 million yuan and a dividend rate of 46%.

After deduction, return to mother’s net profit 2.

20,000 yuan, +162 for ten years.

twenty four%.

Excluding the delayed acquisition of Longyu Star, the company’s endogenous growth rate of revenue / net profit was 76.

13% / 77.


In terms of quarters, the growth rate of revenue in 18 years has shown a trend of high and low, mainly due to the company’s rapid growth in the establishment of cross-border e-commerce business since August 2017, and a large base in the second half of the year.

In the first quarter of 2019, it achieved operating income6.

71 ppm, +58 for ten years.

96%, achieving a net profit of 7281.

430,000 yuan, +284 a year.

89%. The profitability of the new business is higher than that of the traditional business. The company’s net profit growth rate is higher than the revenue growth rate, and its performance has maintained rapid growth.

The Internet business is the main driving force for the company’s growth, and the packaging business has grown steadily.

In terms of revenue structure, the packaging business grew by 15 per year in 2018.

51% to 10.

6 ppm; Internet business grows by 461 in ten years.

94% to 12.

09 million yuan, the rapid growth of Internet business, accounting for 53% of revenue.


Among them, cross-border e-commerce business revenue reached 9.

3.3 billion, accounting for 41% of revenue.

12%; In March 2018, the company acquired Beilong Yuxing Star to expand its precision marketing business, and contributed 2018 revenue2.

7.6 billion, accounting for 12.

16% (Considering the consolidation at the end of March, Longyu Star has an income of about +467 in an endogenous decade in 2018.

41%, up to 3.

6.6 billion).

In 2018, the packaging / cross-border e-commerce / advertising business respectively achieved net profit attributable to the mother of approximately 0.



6.8 billion, accounting for about 22% / 46% / 32%.

New business grew rapidly and profitability improved significantly.With the development of new business, the company’s profitability has improved significantly.

The shortest gross profit margin in 2018 is +15.

6 pieces to 43.

06%, of which, thanks to the decline in raw materials and the introduction of new products, the gross profit margin of packaging fell and rose2.

87pcpts to 18.

In terms of Internet business, due to the decline in the gross profit margin of the advertising business on the accounting caliber, the cross-border e-commerce business transformed the development of the advertising business, and the overall gross profit margin of the Internet business fell by -13.

46pcpts to 64.


Due to the e-commerce accounting caliber, the period expense rate increased by +12.

7 pieces to 31.


The company’s e-commerce drainage costs, warehousing and logistics are included in the cost, so this business is reflected in a higher gross profit margin and a higher expense ratio.

As the proportion of e-commerce increased, the company’s expense ratio showed an upward trend.

Among them, the company’s e-commerce advertising, logistics costs and other expenses increased rapidly, the sales expense ratio +12.

39 to 26.

43%; the company develops new business, introduces new teams, increases employee compensation, management expense ratio (considering research and development expenses) +0.

49pcpts to 4.

14%; although bank loans increased, the income expense was diluted and the financial expense ratio was -0.

17pcpts to 1%.

Benefiting from the increase in the proportion of highly profitable businesses (Longyu Star in 2018, Jikeyin’s net interest rate was 26% and 11%, higher than the packaging business), the company’s net interest rate decreased by +2.

33pcpts to 9.


From the perspective of 2019Q1, the company continues to gross, and the net interest rate and expense ratio have both increased.

Gross margin ± 8.

63pcpts to 41.

86%, net margin +6 per second.

37 pieces to 10.

84%, the rate of growth during the period +3.

19 to 29.

31%, of which the sales expense ratio +0.

82 to 22.

65%, overhead rate (considering R & D expenses) + 2pcpts to 5.

02%, financial expense ratio +0.

37pcpts to 1.

64%, improved operating quality and dazzling cash flow performance.

The company’s accounts receivable turnover rate in 2018 was 7.

23 rose to 8.

4. Turnover rate of accounts payable is 5.

87 up to 5.

42, inventory turnover rate from 6.52 rose to 6.

83. Net cash flow from operations 2.

57 trillion, +508 for ten years.


The platform is a cross-border e-commerce platform for each other. The company adopts a unique export social e-commerce model and uses AI big data to select products and match customers.

When the user places an order, the supplier is shipped in real time, and the pre-sale inventory is reduced.

Excellent inventory and cash back management reflects a lot of beautiful cash flow.

From the perspective of 2019Q1, the company realized zero net operating cash flow.

73 trillion, ten years +57.

78%, each operating index is optimized every year.

Investment suggestion: The company is a leading domestic consumer display paper bag company. It has a forward-looking layout of QSR, cluster packaging, offline traffic value mining, and accurate marketing. With the support of accurate marketing, the city’s share will be further enhanced.

In addition, the cross-border e-commerce business refers to the broad market of single-page SNS marketing for Southeast Asian products, high profitability, 杭州桑拿 high turnover, outstanding cash flow performance, and sustained growth.

The company’s management team is based on creativity, and the three major sectors are integrated and developed.

We expect the company to achieve EPS 1 in 2019-2021.

59, 2.

28, 2.

83 yuan, corresponding to PE 15, 10, 8x, maintain “highly recommended” level.

Risk reminders: fluctuations in raw material prices; operating risks of major packaging customers; intensified competition in the cross-border e-commerce market; less-than-expected promotion of code scanning business.

Yatai Group (600881): Cement supply and demand structure improves, pharmaceutical industry develops steadily

Yatai Group (600881): Cement supply and demand structure improves, pharmaceutical industry develops steadily

This report reads: We believe that the company’s pharmaceutical business will develop new growth points in multiple directions, reducing leverage in traditional industries, and providing flexibility in the financial sector. At the same time, benefiting from the normalization of environmental protection in Northeast China, the building materials business will improve.

Investment points: For the first time, it will cover the “overweight” level.

We are optimistic that the company’s cement sector will benefit from shortcomings in infrastructure construction, improve the regional supply and demand pattern and continue the development of the pharmaceutical sector.

We give the company 0 EPS forecasts for 2019-2021.

1, 0.

12, 0.

14 yuan.

We give the company a target price of 5.

54 yuan, for the first time, give “overweight” rating.

The layout of the entire pharmaceutical industry chain has been deepened, and new growth points have been constructed in various directions.

The pharmaceutical sector of the company has opened up the whole industry chain layout of “research-production-sales” and gradually deepened its investment to enhance its comprehensive strength.

“Shenyi Capsule” successfully entered the medical insurance is expected to accelerate the expansion of sales channels and achieve revenue growth.

Jilin Pharmacy acquired Beijing Yongan Revival, divided into the century-old “Yong’antang” brand, and the layout of the online Tmall Jingdong flagship store, which will accelerate the company ‘s retail pharmacy business growth and improve “physical stores + online sales + free drug delivery + wholesale”A new business model.

Traditional industries tend to improve and gradually deleverage.

In the first five months of 2019, the growth rate of Northeast cement output was 21.

54%, regional demand has changed the trend of the past few years after the CSC, and infrastructure has helped to rebound demand.

At the same time, the supply side of environmental protection and limited production of new peak production is the new normal, and the cement supply and demand pattern may be improved.

Real estate, as the company’s main sector of debt growth after 2009, has shifted its strategy 南京桑拿网 to leverage reduction.

Holding securities firms + participating banks have high flexibility.

The company holds 30 of Northeast Securities’ equity.

81% is the controlling shareholder; Jilin Bank holds 9 shares.


The financial sector is highly resilient and upwards. The company fosters new profit growth points by expanding the scale of the financial industry.

Risk reminder: domestic currency, real estate macro policy risks.

Pengding Holdings (002938): Withdrawal of impairment affects short-term profits but is conducive to improving long-term profit

Pengding Holdings (002938): Withdrawal of impairment affects short-term profits but is conducive to improving long-term profit
The company announced on the 28th that 西安耍耍网 the wholly-owned subsidiary Hongqunsheng Precision Electronics (Yingkou) Co., Ltd. provided a provision for asset impairment of 211.1 million yuan. After this withdrawal, Hongqunsheng’s remaining book 武汉夜生活网 assets were 114.92 million yuan, including equipment and inventoryIt will be transferred to Huai’an and Qinhuangdao factories for use, and land and buildings will be further sold.  Although the closure of the Yingkou factory and accrual of impairment may affect short-term profits, it is beneficial to long-term profits.The company’s labor union announced that at the end of November 2019, the production and operation activities of the subsidiary Hongqusheng of Yingkou had been suspended, and employees had been resettled and dismissed.Hongqunsheng’s location is far from the electronics industry, so it cannot obtain high efficiency. The industry supporting the indicators is difficult to provide customers with alternative products and services. The report data shows that Hongqunsheng’s 2016-2019Q3 net profit-0.52 / -1 / -1.2 / -0.5.7 billion, in a state of continued paralysis.We believe that although suspension of operations and accrual of impairment will affect 19 years of profitability, it will help to further optimize resource allocation, improve the company’s overall asset management efficiency and mid- and long-term operating efficiency, and will also bring a direct positive contribution to profit in the coming year;The erratic release of the release rhythm affected the performance in November, and is expected to return to growth in December.The company’s November revenue was shortened to the lowest because the iPhone XR, which has 18 years of higher sales, was postponed for one month, and the peak of cargo pulling was postponed to October-November. The high base in November caused the upstream TSMC to have built-in chips.Insufficient capacity also has an impact. According to our industry chain research and understanding, since Q3, 5G mobile high-end AP chips have driven TSMC’s 7-nanometer production capacity to full load. At present, OEMs of 5G-related chips such as OLED driver ICs, TDDI chips, CMOS sensors, and fingerprint identification chips are foundry.Demand has also begun to warm up. TSMC’s wafer foundry delivery time has been extended to more than 3 months. The tight supply situation will continue into next year, which will bring some pressure to downstream terminals.At this point in time, due to the iPhone 11 being better than pessimistic, the new iPhone SE2 will enter the pre-stocking phase in the first half of next year. Apple’s wearable business continues to be booming. Domestic brand customers’ 5G mobile phones are accelerating the release. 5G smart terminal motherboard upgrades are driving overall HDI demand, Peng Ding’s revenue growth in December is expected to return to growth, and the growth trend in Q1 is good.  At present, 20 years of Apple’s FPC & SLP supply chain trends are upward: 1) iPhone 11 series sales are more conservative than expected, supply chain inventory in the first half of 20 years, reducing the pressure on component prices; 2) 2020H1 will be driven by the release of new iPhone SE2Low season demand, and the Q1 industry chain in 2019 is in a destocking base. It is expected that the company’s product structure and productivity change will improve in 2020H1. By 2020H2, the release of Apple’s 5G mobile phones will further expand pricing, and increase wearable equipment and software applications.The tight supporting properties are expected to further stimulate the demand boom.3) Currently in the new product supply chain verification period next year, based on the scale and supporting advantages of its counterparts in Japan and Taiwan, the company’s potential supplementary material numbers and sharing deserve continuous attention.4) In terms of SLP, the 20-year iPhone series will be equipped with SLP, and the 5G version of SLP will have improved area and integration, replacing the company ‘s new production capacity in Qinhuangdao.  Apple system’s internal and external expansion category supplements complement internal automation innovation, and long-term momentum is still expected.The company’s main business logic is the expansion of the material number categories of mobile phones, headphones, tablets and other soft boards within the Apple system, as well as the gradual fading out of Japanese FPC giants, and the gradual expansion of its own expansion.  In addition, the company ‘s SLP business ‘s precise HDI advance technology route, and the miniLED high-end HDI market are expected to be laid out. Subsequently, the high-speed HDI and SLP markets in the era of integration are expected to open.In addition to the business level, the company is also committed to self-innovation within the enterprise. For example, it leads the industry trend in the automation layout. The number of internal grass-roots manual employees has a long-term reduction plan. The transition from a triangular employee structure to a trapezoidal structure will increase the number of equipment management engineers.In the long term, it is expected to further comply with artificial dependence.  Maintain “Highly Recommended-A” investment rating.Taking into account the closure of the Yingkou subsidiary, the impact of impairment on the revenue and profit in 19 years (expected to reduce approximately 100 million revenue and 200 million net profit in 19 years), and the contribution of this part to the performance of the next year(The annual advanced pre-increasing approximately 1 million net profit in the next year), and taking into account the latest business trends of the company, we update the profit forecast. It is estimated that the company’s revenue for the year 19-21 will be 267/327/372 billion and the net profit attributable to the parent will be 28.3/37.7/44.300 million, corresponding to EPS 1.23/1.63/1.92 yuan, corresponding to the current total PE is 36/27/23 times.There is still room for the company’s future earnings to exceed expectations. Maintain the “Strongly Recommended-A” rating with a target price of 56 yuan. Risk warning: major customer innovation is lower than expected, 5G gradually exceeds expectations, and automation reform is expected.

North China Chuang (002371) Quarterly Report Review 2019: Steady Growth in Revenue Increases R & D Investment Leaders Deposits Will Further Consolidate

North China Chuang (002371) Quarterly Report Review 2019: Steady Growth in Revenue Increases R & D Investment Leaders Deposits Will Further Consolidate

Matters: The company released the 2019 first quarter report, which reported a merger and achieved operating income7.

08 million yuan, an increase of 30 in ten years.

51%, net profit attributable to mother was 1991.

380,000 yuan, an increase of 29 in ten years.

65%, attributable to non-net profit of -2247.

610,000 yuan, a decrease of 87 per year.


Comment: The revenue has steadily increased, and the R & D expansion has significantly improved. The company has four major business groups: semiconductor equipment, vacuum equipment, new energy lithium battery equipment and precision electronic components, 12-inch etching machines, PVD, ALD, monolithic insulation systems, andIntegrated circuit equipment such as LPCVD has entered mainstream foundries, and has included technology accumulation in the field of integrated circuits. It has targeted the extension of product development in photovoltaics, LEDs, display panels and other fields. Reporting, operating income continued to grow, achieving growth of 30.

51% to 7.

08 trillion, gross margin 44.

88%, up from the previous month.

Expense rate increased by 4.

85pct to 43.

48%, a decrease, the company strengthened cost control and reduced the increase in management expense ratio4.

4pct, budget, the expansion of the company’s sales scale, driving the sales expense ratio to increase slightly.

85pct; At the same time, increase research and development efforts to increase research and development costs by an additional 204.

21% to 1.

06,000 yuan, the R & D expense ratio has increased significantly8.

54 points.

In addition, the company’s new R & D projects were supported by the government, which reported and received government subsidies of 4,936.

210,000 yuan.

Full orders in hand are expected to support future performance growth to the end of the first quarter of 2019, and the company’s inventory is 34.

850,000 yuan, an increase of 4 over the end of 2018.

70 trillion, advance payment 16.

4.4 billion, an increase of 0 from the end of 2018.

7.9 billion.

The company has full orders on hand and is expected to form better support for future performance.

Product R & D and customer expansion have been smoothly advanced, and the company’s strength has been increased. The company’s strength has been further strengthened. The company is one of the largest domestic high-end semiconductor process equipment suppliers with the largest product system and the most extensive field.Etching machine, PVD, CVD, oxidation / diffusion furnace, cleaning machine, ALD, etc.

Among them, the 12-inch 90-28 nanometer integrated circuit process equipment has been industrialized, and the 12-inch 14 nanometer integrated circuit process equipment has entered the process verification stage.

The penetration rate of the company’s products in downstream production lines has continued to increase. In addition to SMIC, the company’s equipment has also entered Huali Microelectronics, Yangtze River Storage and other leading domestic production lines.

The company plans to raise and raise US $ 2.1 billion for high-end integrated circuit equipment R & D and industrialization projects and high-precision electronic component industrialization base expansion projects, aiming to gradually improve the layout of advanced process equipment and enhance market competitiveness.

Profit forecast, estimation and investment grade: We maintain our expectation that the company will achieve net profit attributable to its mother from 2019-2021.

89, 5.

75 and 7.

230,000 yuan, EPS 0.

85, 1.

26 and 1.

58 yuan, corresponding to PE 73, 49 and 39 times.The traditional semiconductor equipment industry is still in its growth stage. Consider using the PS method to evaluate, with overseas mature companies AMAT and ASML as comparable companies. PS estimates that the hub is 2-5 times and 5-8 times respectively.High performance growth, given 5-5 in 2021.

5x PS, with a discount rate of 10%, with a target market value of 316 in 2019.


2 ppm, with a target price range of 69.


9 yuan, maintaining the “recommended” level.

Risk warning: The industry demand is lower than expected, the equipment domestication progress is lower than expected, and the equipment verification progress is lower than expected.

Suning Tesco (002024): Smart retail enters the era of ten thousand stores, omni-channel, multi-format expansion, and the scale effect of traffic entry will gradually become apparent

Suning Tesco (002024): Smart retail enters the era of ten thousand stores, omni-channel, multi-format expansion, and the scale effect of traffic entry will gradually become apparent
Investment Highlights Event: Suning released its 2018 annual report and achieved a sales volume of 3,367 in 2018.570,000 yuan, an increase of 38 in ten years.39%, including online sales of 2,083.54 ppm, a 64-year increase of 64.45%.In 2018, it achieved operating income of 2,449.57 trillion, +30 a decade ago.35%, the net profit attributable to the parent company is 133.28 ppm, an increase of 216 in ten years.238%.The consolidated gross profit margin in 2018 increased by 0 compared with the same period last year.91%.The reported company strengthened the optimization and upgrade of the store structure. The same-store growth rate was stable. The 3C specialty appliance stores / Suning Tesco direct-operated stores / Red 厦门夜网 Kids Maternity and Baby Stores increased comparable store revenue by 2%.39% / 9.35% / 29.78%.  Offline: Multi-format, multi-tier market retail stores exceeded 10,000, profitability rebounded steadily.  Continue to optimize the “two big, two small, multi-specialized” offline store layouts, and build a smart retail channel network covering different market levels and different consumer needs. The total number of self-operated / affiliated stores reached 11,064, and the advantages of offline chain resources continued.Consolidation: (1) 2,105 home appliance 3C home life specialty stores: continue to upgrade the format of professional large stores, and at the same time promote the cooperation with the business supermarket format, export professional 3C home appliance operation capabilities, settle in RT-Mart, Auchan, Bufeng Lotus Supermarket, relocationThere are 478 supermarket stores; (2) 4,439 county-level market stores: Suning accelerates market sinking and taps the consumption potential of county-level market. Suning Tesco has 2,368 direct-operated stores, retail cloud franchise stores accelerate the expansion of light assets and assign valueIt can reach the low-end market, reaching 2,071 by the end of the year; (3) Multi-format stores reached 4,454: 157 red-baby mother-baby stores and 8 Su Xiansheng supermarkets to create O2O carriers for mother-to-baby / fresh-food supermarkets to meet the diversity of consumersConsumer demand; 4,177 small shops in Suning and 112 franchised stores in Diya to create offline super traffic entrances to support community business development; (4) Hong Kong, Macao and JapanWe have 66 overseas stores.  In 2018, through the expansion of high-frequency product categories to effectively increase customer flow to stores, strengthen precision marketing and other means, the same-store revenue of home appliance 3C specialty stores increased2.39%; Suning Tesco’s directly-operated stores have deepened the third- and fourth-tier markets, continued to expand product efficiency, and increased same-store revenue by 9.35%; The business model of Red Kids Maternity Stores is gradually explored and matured, the quality of operations has steadily improved, and same-store revenue has increased by 29.78%.  Online: Strengthen product expansion and drainage, community marketing and industry linkage to drive sales growth; Online self-operated GMV in 2018 is at least +53.70%, open platform GMV +100 in advance.31%.  Rapid online growth has been continuously confirmed, with an online GMV of 2,083 in 2018.54 ppm (including tax), an increase of 64 in ten years.45%, the proportion increased to 62%, becoming a powerful engine that drives the overall sales growth; of which, the self-operated GMV reached 1,497.92 ppm (including tax), the open platform GMV reached 585.62 trillion (including tax).  (1) Continuous expansion of product introduction and drainage, development of online fast new categories, continuous enrichment of fast moving consumer goods and home improvement department stores, and introduction of new categories to new merchants accounted for 86.01%; pay attention to refined operation management, strengthen related recommendation, carry out precise marketing, and effectively increase user repurchase rate.(2) Carry out democratic marketing, vigorously promote Suning’s push-to-purchase, commission system to encourage pushers to share, and tap the consumption bonus of the push-to-purchase market.(3) Strengthen industrial linkage and deepen farming 4.The 07 billion retail system member demand, through access to life, entertainment and other high-viscous membership rights and interests, has led to the rapid growth of some members.  Financial data analysis: Every increase in comprehensive gross profit margin is 0.91%, the expense rate increased by 0 in ten years.47%, net profit increased by 216 in ten years.35%.  Gross profit margin: Commodity price control effectively increased daily sales gross profit, product structure adjustment, supply chain optimization and single product operation to improve gross profit level, open platform, logistics, finance and other value-added services income increased. The company’s comprehensive gross profit margin increased by 0 compared with the same period last year.91%.  Operating expense ratio: As a result of the strengthening of talent reserves and the amortization of management expenses accrued from the employee shareholding plan, the personnel expense ratio rose to zero in stages.54%; advertising promotion costs increased, advertising promotion rate ratio increased by 0.28%; omni-channel scale effect brings offline rent, decoration, water and other fixed fee rates down by 0.58%; warehousing and distribution network construction supporting the development of new categories and sinking channels has been gradually improved, and the logistics rate has dropped by 0%.13%.The company’s total expense ratio increases by 0 every year.47%.  Net profit: The net profit attributable to the parent company in 2018 was 133.28 ppm, an increase of 216 in ten years.35%, mainly due to the sale of Alibaba shares, logistics real estate funds to buy company assets and other investment income and the impact of changes in fair value.In order to effectively strengthen cash management, Suning launched an investment and wealth management business. Without taking into account the investment and wealth management income generated by this part of the restructuring of operating funds, Suning realized a deduction of non-net profit in 20183.100 million, a year-on-year decrease of 41%.  Cash flow: The net cash flow from operating activities in 2018 was -139 trillion, mainly due to the rapid development of financial business and the increase in loan size brought about a net cash flow replacement.6 billion.In addition, the company strengthened financial support to suppliers and actively developed sales to the public. The increase in the size of accounts receivable has dragged down operating cash flow performance.  The logistics resources are abundant, the service capacity is continuously improved, and the logistics service income is increasing by 40% every year.82%.  As of the end of December 12, 2018, Suning Logistics and Tiantian Express had a total area of 9.5 million square meters of warehousing and related supporting facilities, with 27,444 express outlets, a logistics network covering 351 prefecture-level cities across the country, and 2,858 district and county cities.Increase by 40 compared to the same period last year.82%.Based on the development needs of fresh products, the construction of cold chain logistics has been accelerated, and 46 fresh cold chain warehouses have been expanded to cover 179 cities, effectively improving the distribution efficiency of fresh products.At the same time, we will focus on improving the logistics service capabilities of the county market. Until the end of 2018, 264 county-level comprehensive service centers have been established.  Suning’s financial capital continued to strengthen, and financial services revenue was two years.44%.  Suning Finance carefully focused on the needs of the Suning ecosystem, gathered core businesses and products, accelerated the transformation of fintech companies, exported fintech capabilities, and increased operating income by 80%.44%.The funding for the B round of capital increase and share expansion of Suning Financial has been fully in place. The C round of capital increase and share expansion will continue to strengthen capital strength, promote product and service innovation, and increase user stickiness.In the future, if Suning Financial Services is separated separately, it will significantly optimize the operating cash flow of listed companies after it is released.  Investment suggestion: Smart retail enters the era of 10,000 stores, omni-channel multi-format expansion of traffic entry, scale effects will gradually highlight, and maintain a “buy” rating.  Suning has been cultivating home appliance retail for more than 20 years, and has formed a broad economic moat. The omni-channel home appliance retail market share has steadily ranked first, and offline chains have entered the era of ten thousand stores.Under the scale effect of multi-channel multi-format operation, the profitability of offline stores rebounded, providing the company with a rich and stable source of income.Offline will promote the layout of stores around “two big, two small, multi-specialized” to fully meet the diversified consumer demand; online will consolidate the advantages of traditional live products, increase the transformation of open platform merchants, strengthen refined operations, and improve user recoveryPurchase rate.When the e-commerce search traffic bonus peaked, the value of offline stores ushered in a revaluation. Suning expands new traffic entrances based on the original stores: (1) Retail cloud franchise stores quickly promote market sinking and tap county-level marketsConsumption potential; (2) Suning fights to seize the dividends of social traffic and strengthen the industrial linkage of the retail system; (3) Suning’s small stores go deeper into the last mile to support the community group business in order to reduce costs and draw highly sticky social traffic in the community.Suning is a retailer, but also a supply chain enabler and retail service provider. It continues to export supply chain service capabilities such as logistics and finance, and service revenue is expected to grow in volume.If Suning Finance achieves an independent spin-off and listing, it is expected to significantly optimize the cash flow of listed companies and reorganize the financial impact after the listing.The company’s main business has solid profitability and clear strategic development logic. It is expected to achieve operating income of 3,102 in 2019-2021.44 / 3,896.62 / 4,815.4.2 billion, realizing net profit attributable to mother 177.19/22.63/67.5.9 billion.  Risk prompts: 1. Online-offline integration is less than expected, and online business costs have soared; offline store renovation has been hindered, poor expansion of new store operations has intensified and intensified, causing the company’s profit growth; 2. Search traffic dividends have diminished and Tmall flagship store trafficWeakness of advantages; Suning’s new purchases of retail sales, retail cloud, Suning’s small stores and other new traffic entrances did not develop smoothly, and traffic costs rose; 3. Insufficient risk control capabilities of financial services, increased bad debts continued to drag the Group’s cash flow to deteriorate.