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.

96%.

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.