Month: March 2020

Zhong Gong Education (002607) 19th Quarterly Report Review: Q3 Performance Growth Continues to Recruit Market

Zhong Gong Education (002607) 19th Quarterly Report Review: Q3 Performance Growth Continues, National Exam Recruitment Market Rebounds

I. Overview of the incident The company announced three quarterly reports on October 28, 2019, and achieved revenue of 25 in the third quarter.

220,000 yuan, an increase of 46 in ten years.

08%, net profit attributable to mothers4.

660,000 yuan, an increase of 41 in ten years.

62%; year-to-date, realized revenue of 61.

590,000 yuan, an increase of 47 in ten years.

67%, achieving net profit attributable to mother 9.

590,000 yuan, an increase of 77 in ten years.


Second, the analysis and judgment of the continuous growth of performance, advance receipts increased by more than 100% to ensure that the company’s gradual performance in the third quarter to achieve revenue 25.

2.2 billion, an increase of 46 every year.

08%, net profit attributable to mothers4.

6.6 billion, an increase of 41 every year.

62%, the third quarterly results forecast intermediate level, performance growth continued.

As of September 30, 2019, the company had advance receipts 39.

1.8 billion, an increase of 104 from the number on January 1, 2019.

07%, again reflecting the continuous expansion of the company’s operating scale, sales revenue continued to increase.

The unified recruitment exams are picking up, and the company seizes the opportunity to further increase the city’s share of conversions. The uniform recruitment exams such as civil servants and public institutions are picking up. For example, the number of recruits for the national exam in 2020 will be 2.

More than 40,000 people, an increase of nearly 10,000 compared to the same period last year, and the number of people increased by 66%. The company continued to seize the opportunity of market recovery based on timely adjustment of management to achieve counter-trend growth in the previous market changes, through brand advantages and downgradeMaintaining crackdowns to further increase market share.

In addition, through the increase in the number of graduates, the 合肥夜网 demand for decentralized examinations such as teachers and grass-roots public services has increased. The company continues to maintain its leading edge in the market competition for new categories through its first-mover advantage and strength in teaching and research.

In the future, the company will further improve its business layout, consolidate its leading position in the vocational education market, and achieve cross-track development through the “multi-category growth flywheel” effect.

Third, investment recommendations maintain the “recommended” level.

As the number of recruited candidates for the unified exams has picked up, the company, as a market leader in recruiting, strives to achieve brand advantages and reduce dimensionality, further increasing its market share advantage.

In addition, driven by the multi-category business layout and the category rotation effect of “supply creates demand”, the company is committed to achieving cross-track development and realizing the strength of the leading Trinity’s hard resources to further consolidate market share.

Therefore, we expect the company’s EPS to be zero in 19-21.



47, corresponding to the current price of PE is 70X / 52X / 40X.

The 19-year PE wind of the existing education and training industry unanimously predicted 56X. Considering the top of the company and the high growth rate of performance, we believe that there is a reasonable premium for the company’s assessment.

Therefore, maintain the “recommended” level.

4. Risk Warning: The annual recruitment policy and number of public positions change, and competition in the industry is intensifying.

Hengyi Petrochemical (000703): If the profit of 4 billion is only the lower limit of profit?

With calculation basis!

Hengyi Petrochemical (000703): If the profit of 4 billion is only the lower limit of profit?

With calculation basis!

Investment logic Hengyi Petrochemical will fully benefit from the commissioning of the first phase of Brunei Refining & Chemical.

This project is the first refining project in the petrochemical industry with a minimum of 11 years and a longest replacement tax of 24 years.

The market lacks expectations of the 1 billion excess benefits brought by the cost advantage of the Hengyi Brunei project and the 800 billion excess profits brought by its growth advantages.

We estimate that the extra benefits brought by the cost and investment of its Brunei project are already close to the net profit of Hengyi Petrochemical’s approximately 1.9 billion in 2018, and the expected difference is huge.

(1) The cost advantage of Hengyi Brunei Refining and Chemical Project brings significant excess profits: The PX unit uses Honeywell’s LD Parex technology and low-temperature heat for seawater desalination preheating technology, and flexible coking uses Mobil Flexicoke technology.

Theoretically, when the industry is in the balance of surplus and loss, the excess benefits brought by its overall advanced technology and improved cost advantages exceed US $ 1 billion.

(2) 武汉夜生活网 Significant excess profits brought by the advantages of Hengyi Brunei refining project: As the first alternative in the history of the petrochemical industry for 11 years, the tax exemption project is replaced every 24 years. Theoretically, its scale policy advantage brings a phase one projectThe excess income exceeded 800 million yuan.

(3) The Hengyi Brunei project has a greater interval impact: The Singapore Exchange, which is the world’s three largest oil exchanges adjacent to the project, directly locks the refining profit in advance through tools such as hedging, which results inThe ability of the interval period to affect.

Hengyi Petrochemical is leading the industry in the cost of incorporating polyester filaments: Hengyi Petrochemical has its own paper tube / packaging material / thermal power plant with complete industry supporting facilities, and has been able to keep the cost of filaments ahead of the industry average. When the industry is in a breakeven stateThere is still significant profitability.

Shares in Zheshang Bank benefited from the steady growth of Zheshang Bank.

Hengyi Petrochemical holds 4% of Zheshang Bank.

Zheshang Bank is expected to contribute more than 500 million steady profits to Hengyi Petrochemical every year.

Investment suggestion Hengyi Petrochemical Brunei Refining and Chemicals project has a weak profit cycle, and the PX / PTA / polyester integrated supporting industry will be concentrated in the future.

Shareholders are optimistic about the company’s development and make large purchases.

We believe that the company estimates the budget and gives the company a “Buy” rating.

It is estimated that we are optimistic about the sound development logic of the development of the polyester / nylon industry chain led by the Brunei project, maintaining the company’s next 12 months.

00 target price, the target price corresponds to the 2019/2020/2021 price-earnings ratio of 22.



76 times.

Risk 1.

Oil price fluctuations 2 Substantial changes in refinery spreads 3.

Foreign exchange risk 4.

Risk of price fluctuations of chemical products 5.

Demand risk in the polyester / nylon industry chain.

Risk of large-scale lifting of company stocks 7.

Dilutive risk of convertible bond income

Impact of Sino-US trade war 9.

Third party data risk 10.

Impact of other force majeure

Zanyu Technology (002637): Expansion of production in the 100s of the daily chemical project has huge potential for future growth

Zanyu Technology (002637): Expansion of production in the 100s of the daily chemical project has huge potential for future growth
Event: On August 29, the company and the Management Committee of Baoshan Economic Development Zone, Hebi, Henan signed the “Zanyu Science and Technology Central Plains Daily Chemical Ecological Industrial Park Project Investment Agreement”, planning to invest 3.5 billion US dollars to build a 100 yen daily chemical ecological industrial parkproject.  Open up the Central Plains daily chemical market, and create a new one in three years.The company’s budget investment is 3.5 billion US dollars, of which the company’s holding investment is about 2 billion U.S. dollars, and the dating industry affiliate company invests about 1.5 billion U.S. dollars. The construction plan includes 25 euros / year surfactant, 25 dollars / year oleochemicals, and 50 dollars / yearProtective products, chemical industry for dating brands, as well as supporting packaging, raw materials, warehousing, logistics, etc.The project is planned to be built in three phases: the first phase plans to build 25 years / year of surfactant, 50 tons / year of cleaning and maintenance products, and the construction period is from October 2019 to October 2021; the second phase plans to build 25 months / yearFatty chemicals, the construction period is from October 2021 to December 2022; the third phase plans to date brand daily chemical companies and supporting packaging, raw materials, warehousing, logistics, etc., planned to be completed by the end of December 2024, one of whichThe second and second phase projects will be constructed in phases and put into production in phases.It is estimated that the annual output value will reach 100 trillion, and the profit and tax will be about 8 trillion after the full production.  The strength of the company’s major shareholders is gradual, and the advantages of Central Plains in production are outstanding.The company’s actual controller, Henan Zhengshang Group, is one 南京桑拿网 of the leading real estate companies in Henan and currently ranks around 50 nationwide with outstanding capital strength.Henan is located in the Central Plains region, currently has a resident population of about 9,500, and has huge consumption potential. At the same time, it can radiate the markets in North China, Northwest China and Central China, and has an extremely important geographical strategic advantage.Hebi Baoshan Economic and Technological Development Zone is a provincial-level professional chemical park and one of the four modern coal chemical bases in Henan Province. It has standardized management and complete industrial service facilities.The project planning of the company makes full use of the capital and resource advantages of major shareholders, and can give full play to the leading advantages of Zanyu Technology in the field of oleochemicals and surfactants.  The inflection point for palm oil prices has now arrived and the company is expected to fully benefit.Benefiting from the growth of the food sector and the demand for biodiesel, global palm oil demand will increase by at least 700 tons in 2019, and the apparent consumption of the global market is expected to reach 7,700 tons of palm oil. However, due to the short-term production of Indonesia, the world’s largest palm oil producer,Its export volume in 2019 will decrease by 8%, and the growth rate of supply will slow down to 200 inches next year. This year, the global palm oil destocking cycle will be superimposed. It is expected that there will be a replenishment gap in palm oil next year, so we judge that the palm oil price turning point has been completed.At the same time, the downstream radial surfactants have been integrated in the industry in recent years and the small production capacity driven by environmental protection factors has improved the concentration and orderliness of the industry. At the same time, the demand for downstream washing supplies has grown steadily.Impurity surfactant double faucet, volume is 65 lbs / year, and surfactant production capacity is 700,000 tons / year, which is expected to fully benefit from rising product prices.  Earnings forecasts and investment advice.It is expected that EPS for 2019-2021 will be 0.87 yuan, 0.97 yuan, 1.16 yuan, the net profit attributable to mothers will maintain a compound growth of 40% in the next three years, maintaining a “buy” rating.  Risk warning: the price of raw materials may change sharply, the prices of surfactants and oleochemical products may drop sharply, the progress of construction projects may be less than expected, and weather conditions may be less than expected.

China Torch Hi-tech (600872) 2019H1 Performance Review: Stable Growth of Condiments, Assessment and Optimization of Incentives

China Torch Hi-tech (600872) 2019H1 Performance Review: Stable Growth of Condiments, Assessment and Optimization of Incentives

Company dynamics The company released its 2019 Interim Report and achieved revenue of 23 in the first half of the year.

9.2 billion yuan, an increase of 10.

0%, attributable net profit is 3.

6.6 billion, an increase of 8.

0%, deducting non-attributable net profit is 3.

4.6 billion yuan, an increase of 5.

9%, EPS is 0.

46 yuan / share.

Matter commentary performance was in line with expectations, soy sauce / chicken powder increased steadily, and oyster sauce / cooking wine increased in volume in 2019H1.

6.2 billion yuan, an increase of 15.

3%, of which Q2 income is 9.

500 million yuan, an increase of 15.


In the first half of the year, soy sauce, chicken powder and chicken flour income 14 respectively.


7 billion yuan, an increase of 10.

4% / 19.

3%, steady growth; oyster sauce, cooking wine grew faster than 60%, income was 1.


46 ppm; edible oil, fermented bean curd grew by more than 25%, and income was 2 respectively.


2 billion yuan.

In terms of regions, the income of South / East / Central West / North is 9 respectively.




4.9 billion yuan, with growth rates of 12% / 12% / 24% / 21%, with rapid growth in the central and western regions and the north.

In the first half of the year, there was a net increase of 111 dealers, of which the northern and central and western regions respectively increased 49/41. At the end of the period, the total number of dealers reached 975, and 15 blank prefecture-level cities were developed.In the future, the development efforts of prefecture-level cities and tertiary market districts and counties will still be rapidly vacant.

In addition, the 2019H1 headquarters earned zero.

2.5 billion (-80%), with expenditure of 17.1 million, mainly due to a sale of assets in the same period last year, achieving revenue1.

1.3 billion, contributed a net profit of about 50 million yuan; Zhonghui Hechuang (real estate and services) revenue of 6094 million (+ 53%), attributable net profit of 20 million yuan (+ 104%), the shareholding increased to 89

24%; Zhongju Seiko (auto parts) has a revenue of 41.56 million yuan (-1%) and a net profit of 1.01 million yuan (-29%).

Net cash inflow from operating activities of the company for the current period 6.

7.4 billion, an increase of 63.

8%, mainly due to the increase in revenue from the main business of delicious fresh food.

2019H1 delicious fresh profit level is stable, the annual profitability of 2019H1 company gross margin is 39.

8%, a slight decrease of 0 every year.

2pct, mainly due to rising prices of glutamic acid, packaging materials and other raw materials, soy, salt, sugar and other prices remained stable.The company’s sales expense ratio drops by 0 every year.

3pct to 10.

3%, of which sales staff salary and freight, business expenses increased, advertising costs did not change much; management expense rate increased by 0.

2pct to 6.

0%, mainly due to the increase in the budget expansion of managers; R & D expense ratio and financial expense ratio increased by 0.

2pct and 0.

1 point to 3.

0% and 1.


In the first half of the year, delicious freshness achieved net profit attributable3.

6.2 billion yuan, an increase of 20.

1%, of which Q2 attributable net profit is 1.

7.6 billion, an increase of 8.

0%, the short-term growth rate is mainly due to the net profit margin of Q2 last year exceeded 18%, exceeding the average level of about 2.

0pct, so the net profit in 18Q2 is 20 million higher than the normal level. Overall, the net profit margin of delicious fresh in the first half and quarters remained at 17.

5% -17.

Between 7%, the level of profitability is stable, and the H1 net margin has increased by 0.

62pct, enhanced profitability.

Assessment and incentive optimization, financing to prepare for the expansion of condiment production and the construction of incubation clusters. The company optimizes the performance assessment and compensation incentive system: (1) On the performance assessment indicators, the weight of operating income, net profit attributable to the mother and ROE will be 2: 6: 2 adjusted to 4: 4: 2, income weight increased, consistent with the five-year “double hundred” goal; (2) bonuses are tilted from senior management to middle-level business backbones, and excess bonuses will be returned to the mother net when the target withdrawal can be completedBased on a 5% profit as a reward, the completion rate reaches 1.


In the case of 2 times, 15% and 25% of the excess portion of the net profit attributed to the mother are added to the bonus package, which stimulates the motivation and creativity of employees.

The company intends to register and issue ultra short-term financing not exceeding 4 billion and short-term financing not exceeding 15.

7 trillion, medium-term notes not exceeding 15.

700 million, not more than 71 in total.

US $ 400 million, raising funds to repay US $ 500 million and US $ 400 million in corporate debts due in September 2019 and January 2020, and expanding the main production of future condiments, external mergers and acquisitions, and development of Qijiang New Town,Reserve funds for construction of incubation areas.

Investment suggestions Due to the expected decline in the yield, we slightly adjust the tax rate. It is expected that the company’s attributable net profit for 2019-2021 will be 7 respectively.



750,000 yuan, the corresponding EPS is 0.



35 yuan / share, corresponding to PE is 42/35/29 times (based on the closing price of 2019/8/22).

The company expanded its exploration of blank areas, maintained a steady growth of condiments, optimized the assessment and incentive mechanism, promoted the vitality of the release mechanism, and improved human efficiency.

Maintain the “overweight” rating.

Risks indicate food safety risks, the 北京养生会所 growth of condiments is less than expected, the risk of rising raw material costs, and the effect of mechanism reforms are less than expected.

Tianqi Lithium Industry (002466) Interim Review: Lithium Prices Weak, Performance Under Pressure, Exchanging Price for Volume Is Expected to Achieve Performance Stability

Tianqi Lithium Industry (002466) Interim Review: Lithium Prices Weak, Performance Under Pressure, Exchanging Price for Volume Is Expected to Achieve Performance Stability

Event: The company disclosed its semi-annual report for 19 years and realized operating income of 25.

900,000 yuan, at least -21.

28%; net profit attributable to mother 1.

930,000 yuan, at least -85.

23%; basic profit return is 0.

17 yuan / share, short-term -85.

twenty two%.

Opinion: The sharp drop in lithium prices has weighed on performance, waiting for demand to pick up.

In the first half of 2018, the decrease in lithium chemical products was relatively high. Since the 西安耍耍网 second half of 18, with the increase in industry supply, the scale of supply and demand has gradually adjusted, and the prices of lithium chemical products have changed significantly, resulting in the company’s lithium chemical product revenue and gross profit margins have dropped significantly.
19H1 operating income of lithium compounds and derivatives15.

500,000 yuan, at least -27.

48%; gross profit margin 52.

63% a year -17.

95 points.

At present, the lithium price is still bottoming out, and the average price of industrial carbon trading is as low as 5.

50,000, the average price of electricity and carbon transactions doped to 6.

350,000, price stabilization in the future still needs to wait for demand to pick up.

Multi-channel financing eases financial pressure.

The company completed the SQM 23 in December 2018.

77% equity acquisition at a transaction price of 40.

$ 6.6 billion.

To complete the transaction, the company added $ 3.5 billion in M & A loans and the corresponding interest expense was 8.

610,000 yuan, resulting in 19H1 financial costs of 10.

10 trillion, ten years +666.

26%, asset-liability ratio rose to 74.


At present, the company raises funds by alloting shares, listing H shares, and issuing convertible bonds to alleviate financial pressure.

If the above financing work is successfully completed, it is expected that the impact of the company’s previous investment on loan interest rates and intermediary fees will be replaced, and profitability will improve.

Expansion projects are progressing steadily, and capacity release is expected to increase performance.

The company has built a total of 4 phases in Quinana, Western Australia.

8 Formaldehyde battery-grade lithium hydroxide production line, of which the first phase of the project has entered the commissioning stage at the end of 18, is expected to enter the continuous production and capacity climbing state before the end of 19; the target capacity of the Thaleson lithium concentrate expansion projectOnce a year, the second phase of the project is expected to be completed in 19Q3; the 2 battery-grade lithium carbonate production line in Suining Anju District, Sichuan is under construction, with the goal of building industry automation and intensive production lines.

It is estimated that by the end of 19, the company’s total capacity of lithium chemical products will exceed 6.

8Every year, the scale advantage is obvious, which is expected to promote the performance in the next 2-3 years.

Give “Highly Recommended-A” investment rating.

Under the neutral price assumption, the total revenue for 19/20/21 is expected to be 61.



09 million yuan, achieving net profit attributable to mother 12.74/17.


880,000 yuan, EPS1.



00 yuan, corresponding to PE is 20.



6 times, maintaining “strongly recommended-A” level.

Risk reminder: The project construction progress is less than expected, product prices fluctuate, downstream demand is less than expected, and overseas business risks.

Hengdian Film & TV (603103) 2018 Annual Report Comments: Revenue increased 2.7 billion8.

2% asset-linked cinema continues to maintain rapid expansion

Hengdian Film & TV (603103) 2018 Annual Report Comments: Revenue increased 2.7 billion8.

2% asset-linked cinema continues to maintain rapid expansion

I. Overview of the incident The company announced its 18-year annual report: it realized revenue of 27 in 18 years.

24 billion (+ 8% year-on-year.

22%); net profit attributable to mother 3.

21 billion (YOY-2.


Q4 revenue 5.

1.8 billion (YOY-10.

8%); net profit attributable to mother-0.

03 billion (YOY-113.


Second, analyze and judge the income end: revenue 27.

200 million increase by 8.

2%, advertising revenue achieved + 27% higher growth 杭州夜网论坛 company’s 2018 revenue 27.

24 ppm, +8 a year.

twenty two%.

Molecular sector: movie screening income 20.

300 million (75%, +5 compared to the same period last year).

4%), mainly due to multiple substitutions at the box office of Q4 movies; sales income 2.

500 million yuan (accounting for 9%, a year-on-year increase of +1.

0%); advertising revenue 2.

0 million yuan (7% of the total, +27 compared with the same period last year).

0%); other income totals 2.

4 billion (accounting for 9%, +31 year-on-year.

5%), mainly because the company’s new business achieved rapid growth.

Looking at the operation: As of the end of 2018, the company’s asset-linked cinemas totaled 316 (52 new), with a screen of 1996 (312 new), and achieved box office revenue of 21.

10,000 yuan (+5 compared with the same period last year).

5%), single screen output 105.

80,000 yuan (YOY-10.


Profit: Net profit attributable to mother 3.

200 million decrease by 3.

1%, mainly due to the gross profit margin of the movie projection business: the gross profit margin of 21.

1%, twice -2.

9 points; of which Q4 gross margin is 5.

7% for one year -8.

9pct, the gross profit margin decreased mainly due to the lower gross profit margin of the film projection business.Molecular plate: gross margin of movie screening -2.

1% (-6 per second.

8pct), mainly due to the rapid expansion of the first-tier box office low-increasing cinema, and the increase in the fixed cost of film investment exceeded the increase in revenue;

8% (ten years +1.

6pct); advertising revenue gross margin 100%.

Rate end: 18-year sales expense ratio 2.

4%, a slight decrease of 0 a year.

3pct; management expense ratio 2.

3%, a slight increase of 0 a year.


In summary, the net profit attributable to the mother for 3 years3.

200 million (YOY-3.

1%), net interest rate 11.

8% (year -1.


The number of theaters opened reached a record high vs. single screens and continued to expand. The company’s operation in 18 years faced the “two days of ice and fire”. In 18 years, Hengdian opened 52 new theaters, setting a new record high. At the same time, it shut down 2 theaters and 14 screens for the first time to optimize the operation of existing theaterseffectiveness.

Preliminary Hengdian film voting room income 21.

1 billion (+5 y / y.

45%), the national movie box office 609 during the same period.

8 billion (+ 9% year-on-year.

1%); 1996 screens realized (YOY + 18.

5%), the number of national screens in the same period was 60079 (YOY + 18.

3%); single screen makes 105.

80,000 (YOY-10.

9%), the national single screen output over the same period of 940,000 yuan (ten years -8.

7%), ranking third among film investment companies (same as last year).

The industry has entered a reshuffle period, and the single-screen projection inflection point can continue to accelerate the theater speed in 2019. It is expected that 60 new theaters will be opened with about 390 screens and 5 theaters (30 screens) will be shut down at the same time.

In the industry reshuffle period, the first to be cleared is usually small and medium-sized theaters that are not well-managed. During the industry reshuffle period, the company continues to expand at a reduced rate. It is expected that it will benefit from industry consolidation and usher in market share and single screen development.

The company continues to accelerate the “4 + 1” strategy, increasing advertising revenue through multiple channels, and increasing the proportion of non-ticket revenue in the future. At the same time, it optimizes operating efficiency and reduces the management expense ratio.

Third, investment recommendations We expect the company’s revenues to be 31 to 21 years.



900 million, previously +16.

1% / 18.

9% / 19.

4%; net profit attributable to mother reaches 3.



800 million, previously +20.

1% / 31.9% / 33.

5%; corresponding to PE28.

5 times / 21.

6X / 16.

2 times. At present, the average price-earnings ratio of the cinema industry is about 20 times. Hengdian layouts are in 3rd, 4th, and 5th tier cities, and it will continue to maintain a high expansion rate in the future. We think that the industry clearing after 19 years will benefit some companies in Hengdian.Improve, in summary, maintain the “recommended” level.

4. Risk warning: The box office market is less than expected, market competition is intensifying, and rental costs are rising.

Bank of Ningbo (002142): Achievements in high growth provision industry leading

Bank of Ningbo (002142): Achievements in high growth provision industry leading

This report is a guide: Bank of Ningbo’s 19H1 return to net profit continued to grow at a high speed, the level of provisions increased, maintain the original profit forecast and target price, increase rating.

Investment points: Investment advice: The contribution of non-interest income in 19 years will increase, and maintain the forecast of net profit growth in 19/20/2120.

95% (difference between financial report and forecast) / 21.

81% / 20.

51% earnings per share.

51 (diluted 北京夜生活网 shares) / 3.


66 yuan, BVPS15.



56 yuan, the current price corresponds to 9.



25 times PE, 1.



11 times PB.

Raise target price to 27.

0 yuan, corresponding to 1 in 19 years.

8 times PB.

Performance Overview: 19H1 revenue for ten years +19.

7%, net profit attributable to mother +20.

0%, ROE19.

4% (annualized).

Defective rate is 0.

78%, flat QoQ, provision coverage ratio of 522%, QoQ +1.


New understanding: rapid growth of performance, provision of more substantial profits and rapid growth.

19H1 revenue growth rate in ten years 19.

7%, scale and non-interest net income accelerated growth, the interest margin widened, but due to the elimination of the low base effect of net interest income in 18Q1, the revenue growth rate increased earlier than 19Q1 by 3.

7 only.

19H1 net profit growth was flat at 20 earlier than Q1.

0%, benefiting from the 19H1 income tax rate falling by 1 from Q1.

3 to 8.


The interest rate spread expanded sequentially.

The 19Q2 spread (early end of the period) rose 3bp to 1 from 19Q1.

70%, mainly benefited from the decrease in the cost of interbank debt caused by loose liquidity.After the reform of the LPR system, the return on assets is expected to continue to decline slightly, reducing the contribution of interest margins to performance.

Provisions continued to increase.

The 19H1 bad rate was flat at 0 compared with 19Q1.

78%, attention rate -1bp to 0.

63%, asset quality remained stable.

At the same time, the 19H1 provision coverage coverage rate was 522%, an increase of 1 over 19Q1.

8pc, still the highest level of A-share listed banks.

Risk Warning: Downward Economic Stall Leads to Credit Risk Rise in 2019

SAIC Group’s (600104) 2019 Third Quarterly Report Review: Performance Improves MoM, SAIC Volkswagen Sales Rebound

SAIC Group’s (600104) 2019 Third Quarterly Report Review: Performance Improves MoM, SAIC Volkswagen Sales Rebound

Company dynamicsThe company released the third quarter report of 2019.

  Matter comments Q3 performance improved month-on-month, increase in net investment income The company’s Q3 performance improved month-on-month, operating income, net profit attributable to mothers, and non-net profit deducted were 2090.

51 ppm, 70.

2.8 billion, 63.

21 ppm, a decrease of 0 per year.

40%, 19.

13%, 21.

56%, a decrease of 21% from Q2.

69pct, 21.

43 pieces, 20 pieces

45pct, an increase of 18 from the previous month.

71%, 27.

48%, 29.

twenty four%.

Q3 investment net income 74.

49 ppm, a ten-year increase3.

95%, an increase of 16 from the previous month.


  The gross profit margin continued to be under pressure, and the company’s gross profit margin continued to be under pressure during the period when its expenses were well controlled.

26%, down by 1 every year.

64pct, down from the chain.


The company’s expenses were well controlled, and expenses during Q3 were 11.

36%, a decrease of 0 every year.

47pct, in which the sales expense ratio decreases by 0 every time.

49 points.

  The self-owned brand Q3 武汉夜生活网 achieved growth, and SAIC Volkswagen rebounded the company’s Q3 car sales by 147.

670,000 vehicles, a decrease of 9 per year.

07%, a decrease of 15.

88% and Q2 of 17.

28% narrowed and increased 5 MoM.


Among them, independent brands achieved year-on-year growth, and SAIC passenger car Q3 sales were 16.

10,000 vehicles, an annual increase of 6.

64%, flat month-on-month, with annual increases from Roewe RX3, Ei5, ei6, MG EZS, HS and other models; SAIC Volkswagen, SAIC-GM-Wuling sales rebounded from the previous Q2, SAIC Volkswagen Q3 sales 47.

320,000 vehicles, down 4 each year.

63%, an increase of 4 from the previous quarter.

87%, Tuyue contributed an increase of about 30,000 units, sales of Long Yat, Passat and other pick-ups; SAIC-GM-Wuling Q3 sales of 38.250,000 vehicles, down 14 each year.

49%, 北京夜网 an increase of 21 from the previous month.


SAIC-GM sales are still to be improved, with Q3 sales of 38.

540,000 vehicles, a decrease of 19 per year.

14%, down 5 from the previous month.

34%, Chevrolet Cruze’s sales have reached 1 in Q3 after listing.

50,000 vehicles, but most models increased sales.

  The investment proposal estimates that the company’s EPS from 2019 to 2021 will be 2.

54 yuan, 2.

78 yuan, 3.

03 yuan, the corresponding PE is 9 times, 8 times, 8 times, maintaining the “overweight” level.

  Risks indicate that car sales are less than expected.

Central South Media (601098): Stabilizing and rebounding performance, actively expanding new business

Central South Media (601098): Stabilizing and rebounding performance, actively expanding new business

Main point of view: The main business is outstanding, and the performance has begun to stabilize.

The company integrates all aspects of editing, printing, and distribution. It is a typical multi-media, full-process, comprehensive publishing and media group.

Affected by Hunan Province’s standardized market education and auxiliary policy, the company’s performance has been slightly inclined in the past three years.

The company’s operating income in 2018 was 95.

76 trillion, down 7 every year.

57%, net profit attributable to mother is 12.

38 ‰, a decrease of 18 per year.


Since 2016, the company’s gross profit margin has decreased. During the period, the expense ratio has remained stable. The decline in net interest rate has led to declines in indicators such as ROE, ROA and ROIC.

But in the past of 2019, the company’s performance began to stabilize and rebound, and the company achieved operating 北京夜生活网 income in the first half of 2019.

6.5 billion, net profit 7.

2.2 billion, an increase of 4 each year.

90% and 5.


The company is deeply cultivating the market in Hunan Province and actively responds to the adjustment of teaching aids.

The company’s operating income is mainly in Hunan Province, supplemented by outside provinces.

In the past five years, the number of high school, junior high and primary school students in Hunan Province has maintained a steady growth trend, which is the basis for the growth of demand for teaching aids.

Affected by Hunan Province ‘s standardized market education and supplementary policies, the operating income of the textbooks and education supplementary sector has significantly shifted since 2017. The company actively responded to the impact of Hunan ‘s standardized market 西安耍耍网 education and supplementary policies, and implemented a regional responsibility system for all employees.Set up booths and book delivery service, the sales of teaching aids in the market in the autumn of 2018 picked up several times.

At the same time, the company has grasped children’s teaching materials as a new growth point, and achieved sales of over 100 million in 2018.

According to the special rectification plan of Hunan Province in 2017, the special rectification work time was from June 2017 to December 2018. We believe that the impact of the policy on the company has been basically digested by the end of 2018, and the company’s performance in 2019 has begun to touch.Bottom up.

The general book business is back on the fast track.

The general book business is the company’s second largest source of revenue. The company has a competitive advantage in the field of general books. After more than 60 years of development, the company has accumulated a large number of old, middle-aged and young generations with solid work style, strong technology, and experienced professional editing teamsThere are 9 publishing houses affiliated to the company, of which 5 publishing houses are national top 100 publishing houses.

The operating income of this business in 2018 was 23.

73 ppm, an increase of 10 years.

48%, distorting the trend of 2017 volatility.

Actively develop digital education and financial services businesses.

In the field of digital education, the company’s subsidiary Tianwen Digital Media has continued to increase its technology research and development efforts, forming the basis of the ECO cloud open platform, with AiClass cloud classroom, AiSchool smart campus, AiCloud education cloud, school neighbor APP, ECR resource cloud platform as the coreThe application of the “Smart Education Ecological Tree” complete format layout.

As of the end of 2018, Tianwen Digital Media’s digital education products have served approximately 18 million teachers and students in more than 8,000 schools. In the field of financial services, the company’s financial services business revenue has maintained rapid growth in recent years, reaching 4 in 2018.

25 ppm, an increase of 21 in ten years.

85%, the expansion of the gross margin conversion business scale also steadily rose to 68 in 2018.

twenty one%.

Investment suggestion: We expect the company’s EPS for 2019-2021 to be 0.

741, 0.

816 and 0.

909 yuan, corresponding P / E is 16.

71, 15.

17 and 13.

62 times.The latest P / E ratio of the print media industry (TTM, holistic method, excluding negative values) is 15.

95 times, considering that the company, as a leading publishing and distribution group in China, has long been engaged in the field of teaching aids for elementary and middle school students, and has continued to expand new businesses such as digital education and financial services.

We believe that the company estimates that there is still some room for improvement, so the first coverage gives it an “overweight” rating.

Risk reminders: the risk of changes in preferential interest rates; the risk of excessively rapid growth in paper prices; the risk of competition in the industry.

Shanghai Environment (601200): Incineration project will welcome high production and drive high growth

Shanghai Environment (601200): Incineration project will welcome high production and drive high growth

This report guide: 2019H1 deducted non-attributable net profit2.

8.9 billion, an annual increase of 7.

55%, performance is in line with expectations.

The solid waste business will usher in a large year of production in 2020, driving high growth of the company’s performance, while paying attention to the progress of asset injection by major shareholders.

Investment points: first coverage, “overweight” grade.

We forecast the company’s net profit in 19/20/21 will be 5 respectively.



2.7 billion, the corresponding EPS is 0.



91 yuan.

Combining the two estimation methods, the company is given 22 times PE in 2019 with a target price of 14.

08 yuan, 24% upside.

Solid waste business: The year of commissioning is approaching, driving the company’s performance to grow rapidly.

1) The company’s incineration capacity ranks eighth in the country, and Shanghai takes the first place, and has been put into operation1.

55 statutory / day, under construction1.

425 for the first time / day.

2) Holding a number of high-quality projects in economically developed areas, it has outstanding profitability.

In 2018, the overall capacity utilization rate of the incineration project reached 98%, and the average on-grid ton-to-waste power generation capacity reached 305 degrees, with an average ton handling fee of 102 yuan, which is in the industry’s excellent level.

3) The continuous commissioning of new production capacity of waste incineration projects is the most important driving force for the company’s performance growth.

Among the company’s projects under construction, Weihai Wendeng and Mengcheng are expected to be put into operation by the end of 2019, and a total of 2100 tons / day are expected to be put into operation; Zhangzhou Phase II, Taiyuan, Baolin, Fenghua, Jinzhong, and Songjiang Phase II are expected to be 武汉夜网论坛 launched inIt will be put into operation before the end of 2020. It is estimated that the total production capacity will be increased by 7,950 tons / day, corresponding to the peak period of growth in the performance of the domestic waste incineration sector in 2021, which can predict the high growth of the company’s solid waste business.

Sewage business: Steady operation, pay attention to the progress of upgrading and upgrading; Emerging business: Focus on four major directions and actively develop.

1) A total of 192 cases / day of 6 sewage projects have been put into operation, and 6 sites / day of 1 project are under construction.

2) The four emerging business areas of the company’s hazardous waste medical waste, soil remediation, municipal sludge and solid waste resource (food and kitchen waste and construction waste) are expected to become new growth points in the future.

Asset injection is worth looking forward to.

At the time of separate listing, major shareholders promised to inject a large amount of environmental assets under their control into listed companies for three years (until March 31, 2020). The progress of asset injection is worth looking forward to.

Risk reminder: Changes in the waste incineration subsidy policy, the project is put into operation, and the asset injection is lower than expected.