Liuyao (603368): 19H1 results meet expectations and rapid growth in high gross profit business

Liuyao (603368): 19H1 results meet expectations and rapid growth in high gross profit business

Event: The company released its 2019 Interim Report and achieved revenue of 72 in 19H1.

0 million yuan (+30.

5%), deducting non-net profit amounted to 3.

5 billion (+37.

2%), the operating net cash flow is -3.

6.4 billion.

Interim results are in line with our expectations and the market (already reported).

Opinion: Revenue is accelerating, driven by hospital + retail + industry.

19H1 revenue +30.

5%, a significant increase, mainly due to the acceleration of logistics extension services.

By the end of the period, the company’s cooperative hospitals reached 68 (+9). At the same time, the scope of cooperation between the original agreement hospitals was expanded, including SPD for equipment consumables, intelligent Chinese medicine, and cooperation in outsourcing prescriptions.

19H1 hospital sales revenue +28.

0% is the core driving force for growth.

19H1 retail revenue +52.

6%, 82 DTP pharmacies (+33), and the rapid deployment of DTP is the main reason.

19H1 industrial revenue +270.

5%, mainly due to rapid sales of Metrohm Consolidation and Xianzhu sales.

The gross profit margin continued to increase in 19Q2, and the expense ratio was well controlled.

The company’s gross profit margin was 19 in Q2.

2%, +1.

4pp, a significant improvement, mainly due to: 1) rapid growth in innovative business such as medical devices in hospital sales; 2) rapid growth in retail and industrial businesses with high gross profit margins contributed to the increase in the proportion

The company’s 19Q2 sales / management / financial expense ratio increased by +0 respectively.

16pp / + 0.

00pp / + 0.

45pp, except for the increase in financial expenses, the overall expense ratio is well controlled, and the overall net profit margin for sales in 19Q2 reached 5.

81%, ten years +0.

41pp, profitability further improved.

19Q2 operating cash was able to improve and operating capacity remained good.

The company’s 19Q2 operating cash alternative is zero.

59 trillion, rating 19Q1 of 3.

50,000 yuan has been greatly improved.

From the operating indicators, the company’s 19Q2 inventory turnover days for several years -2.

0 days, accounts receivable turnover days year +3.

6 days, basically kept stable, while the accounts payable turnover days are several years -20.

0 days, but 四川耍耍网 at the same time the bills payable increased, the overall cash flow still showed some improvement.

19H1 performance is in line with expectations, high gross profit business grows rapidly, maintain “Buy” rating and maintain company 19?
The 21-year earnings per share forecast is 2.

72 yuan, the current price corresponds to 19?
The 21-year PE is 13x / 11x / 9x.

The company’s interim report performance was in line with expectations, and high gross profit business continued to grow rapidly. It is estimated to readjust and maintain a “Buy” rating.

Risk reminders: 1) The risk of price reduction with volume purchases; 2) The integration of Wantong Pharmaceutical, Youhe Ancient City does not meet the expected risk.

China Life (601628): New business value expected to continue strong growth in the third quarter

China Life (601628): New business value expected to continue strong growth in the third quarter

Predicting long-term earnings growth in the first three quarters?
180-200% On October 18, China Life issued an announcement announcing that it expects net profit growth in the first three quarters?
180-200%, exceeding market expectations.

We believe that it is mainly benefited from the significant improvement in investment income, changes in indicator policies, and base substitution in the same period last year.

Attention points Third-quarter profit growth exceeded expectations.

The company’s profit forecast implies a significant increase in net profit growth of 423-539% in the third quarter, exceeding market expectations.

It is expected that the growth rate of new business value in the third quarter will maintain a strong growth, clearly leading the industry.

We believe that the improvement of the 3Q19 business structure will at least improve the value of new business to maintain a growth rate of at least 15% and continue to lead the industry (negative or low single-digit growth).

The new leader’s execution capabilities will drive the company’s performance in 2020 to stay ahead of the industry.

Benefiting from the new strategy, which has brought about positive work strategies and outstanding execution capabilities, the company’s new business growth and profit growth in 2019 significantly outperformed its peers, and the reforms proposed in the early open days have substantially advanced.

We expect the company to maintain strong growth ahead of its peers in 2H19 and 2020, which 重庆耍耍网 will lead to turning to the market to question the company’s high-growth sustainability and promote gradual repair.

Estimates and recommendations China Life-H / A is currently trading at 0.


9x 2019e P / EV.

Maintain the company’s profit forecast unchanged.

Maintain China Life-H / A’s target price of 28 reconstruction / 36 yuan, respectively, corresponding to 0.


1x 2019e P / EV and 49% / 23% upside.

Maintain Outperform rating.

Risky stock markets fluctuated sharply, and long-term interest rates fell rapidly.

Macalline (601828): Planning of the first equity incentive highlights confidence in the development of new retail homes worth looking forward to

Macalline (601828): Planning of the first equity incentive highlights confidence in the development of new retail homes worth looking forward to
Event summary: On November 18, Macalline issued a public announcement of a cost-effective equity incentive plan. Within 90 working days of disclosure on the date of this announcement, the company will disclose the expenditure of this incentive plan. Analysis and judgment: planning the first equity incentive plan, showing the company’s development confidence.The company plans the first equity incentive plan, and intends to grant no more than 35.5 million ordinary A shares to directors, executives, management and core personnel of subordinate companies, and the 都市体验网 number of shares granted will account for approximately 1% of the total share capital of the company on the announcement date.The equity incentive plan planned and allocated by Macalline this time is conducive to motivating employees and boosting confidence in the secondary market.During the year, shareholders and executives increased their holdings by approximately 95 through centralized bidding transactions.30,000 shares, accounting for 0 of the total share capital.03%, showing the leaders’ recognition of the company’s future development prospects. Join hands with Alibaba to create new home retail.At the end of May this year, the company and Ali’s high-level strategic cooperation agreement, Ali through the subscription of exchangeable bonds totaled 13 shares.7%, the two sides will carry out in-depth cooperation in new retail stores, e-commerce platforms, logistics warehouse distribution, etc .; according to the China Cabinet Network data, after joining hands with Alibaba, Macalline’s double eleven first battle to achieve 219.9 trillion US dollars, an annual increase of 37.4%, of which the new retail sector performed well. The total number of new retail stores in 6 cities and 24 stores was 24.9 trillion, single store up to 4 trillion.In terms of traffic, the number of participants is 98.50,000 person-times, an increase of 310% in ten years, of which 44 are new members.90,000 people, an annual increase of 240%, the e-commerce drainage effect is significant. “Self-employed + commissioned” two-wheel drive, deep digging channel value.The company’s “self-employed + commissioned” two-wheel drive model, through the self-operated shopping malls to penetrate the first-tier and second-tier cities, the commissioned shopping malls sink to the third-tier and fourth-tier, and build a national sales channel.In the first three quarters of the termination, the company had 85 self-operated shopping malls and 234 commissioned shopping malls, which were converted. The company’s semi-annual report disclosed the acquisition of Shandong Ginza 46.5% equity, strategic joint venture, 12 new home shopping malls, offline stores have been further expanded.In the new retail era, we are optimistic that the company will dig deep into the value of existing channels, empower offline stores, and realize business model upgrades. Investment suggestion: We expect the company’s EPS to be 1 in 2019-2021.39/1.56/1.76 yuan, maintaining profit forecast and target price of 16.40 yuan unchanged, continue to give a “buy” 武汉夜网论坛 rating. Risk warning: Real estate sales are less than expected; the expansion of the new retail model is not smooth.

China Railway (601390): Review of China Railway 2019 Operating Data

China Railway (601390): Review of China Railway 2019 Operating Data

In 2019, the company accumulatively signed 21648 new contracts.

70,000 yuan, an increase of 27 in ten years.

9%, significantly exceeding the 北京桑拿洗浴保健 growth rate in 2018 (8.

70%); of which the new contract amount in the fourth quarter was 10751.

90,000 yuan, an increase of 45 in ten years.

1%, the new chronic single showed a seasonal acceleration trend.

In terms of types, infrastructure orders increased by 25 in ten years.

10%, the increase in infrastructure orders accounted for 83% of the total growth of new growth single items, is the main factor to promote the growth of newly signed contracts.

In terms of business, in 2019, China Railway signed new construction contracts, survey and design and consulting, engineering equipment and parts manufacturing, real estate development, and other business orders.

1%, 30.

3%, 14.

4%, 31.

4%, 57.


Among them, newly signed infrastructure orders increased by 360 billion compared with 2018, accounting for 83% of the total increase in new length orders, which is the main driving force for the company’s order increase.

From the perspective of the subdivision of infrastructure construction, the comprehensive recovery of railway, municipal business and highway business is the main driving factor for the high growth of the company’s infrastructure business. The company’s highway business rebounded significantly from the same period last year (the company’s highway order growth rate in 2018 was -11.

0%); among them, the municipal sector is mainly driven by municipal and housing construction.

In 2019, the company’s domestic and overseas new millennium single growth rates were 28.

4%, 21.


In terms of real estate business, the company’s land reserve will increase slightly in 20194.

8%, the area under construction increased by 62 in ten years.

4%, the amount of real estate signings still increased significantly over 60% on a high base.

Profit forecast and estimation: We maintain the company’s EPS for 2019-2021 to be 0.

80 yuan, 0.

94 yuan, 1.

05 yuan, the corresponding PE on January 22 closing prices are 7.

1 times, 6.

1 times, 5.

4 times, maintaining the level of “prudent increase”.

  Risk Warning: Macroeconomic downside risks, new growth trends, orders on hand fall short of expectations, cash flow conditions deteriorate, and bad debt losses exceed expectations

Juewei Food (603517): Steady growth without fear of market competition

Juewei Food (603517): Steady growth without fear of market competition
Event: The company announced three quarterly reports in 19, achieving 19 in Q1 through Q3.8.6 billion, +18 a year.98%, net profit attributable to mother 6.14 trillion, +26 a year.06%.Among them, 19Q3 achieved revenue of 13.96 trillion, ten years +18.21%, net profit attributable to mother 2.180,000 yuan, +26 a year.54%.In the first three quarters, revenue growth continued to maintain a high speed, and the profit side was in line with expectations. The performance of newly opened stores gradually released in the first half of the year, and revenue continued to grow at a high speed.Revenue continued to grow at a high rate in the second quarter. The preliminary results were as follows: (1) New stores opened in the first half of the year gradually entered the right track and contributed to the performance.The growth of stores in 19H1 accelerated, increasing the number of 683 stores to 10,598. At the same time, the maturity of store operations and the upgrade of fourth-generation stores increased the company’s single store growth. (2) Promotional activities promoted growth. Under the company’s full reduction and other promotional activities, the store turnover has increased positively.The competition in the industry has intensified, and the taste has not changed. The first step is to benefit from the mature operation system of the company’s stores and the strength of the supply chain. The second is that the company’s old products are selling well and new lobster balls with higher unit prices have been introduced.In the cultivation, it is worth looking forward to. The gross profit was affected by the impact of cost side, and the company’s cost control capability was expanded. It is expected that the cost pressure will ease in the fourth quarter.The cost end of the third quarter is still under pressure. Since the beginning of the year, the increase in the price of woolen ducks has been mainly affected by the shortage of the supply side. In addition, the annual volume of woolen ducks in July-September has been reduced by the weather. The average price of woolen ducks in the main producing areas in September hasWith the improvement, the company’s gross profit margin in the third quarter was 35.5% is basically the same as in the second quarter. The company has a scale advantage in raw material procurement and replaces its cost control capabilities.It is expected that the pressure of cost pressure will improve in the fourth quarter. The price of feather ducks has fallen since October, and may be driven by the increase in pork prices before the end of the year. However, the overall average price in 2019 is not expected to exceed 2018, and the profit side in the fourth quarter is expected to perform well. The company’s gross profit margin in the second and third quarters was 35% / 35.5% increased by 1-2pct compared with the first quarter, and the sales expense ratio in the second and third quarters also increased compared with the first quarter, 9% / 9.7%, mainly due to the increase in promotional efforts, while the company ‘s advertising efforts have declined, and it is expected that the 19th phase of 19 will be maintained in the first half of the year. The focus is still on online and offline promotional activities.On the expense side, if the company maintains its current business plan, the profit side will be stable, and the net interest rate in the first three quarters will remain about 16%. The company’s short-term performance has grown steadily. In the long term, the platform operation of “Big Food” is the company’s development strategy, which can effectively use its advantages in the supply chain and channel operations.At the end of 18, the company launched a new brand of “Pepper Flavored” Chuanzhuanxiang stores. Through public channels, the final 19H1 store reached 30 tons. The new product has synergy with the main business of duck neck in supply chain and raw material procurement. The company is optimistic about the market of Chuanzhuan industry.Development, key strategies are gradually implemented.At the same time, the company accelerates the layout of the food sector through external investment and forms long-term synergy. The investment areas are mainly concentrated in leisure loin, light catering, cold chain logistics, and seasonings. Earnings forecast: We expect the company’s revenue in 19-21 will reach 50 respectively.29/58.44/68.54 ppm, an increase of 15 in ten years.1% / 16.2% / 17.3%, net profit realized separately.51/8.91/10.810,000 yuan, an increase of 19 in ten years.1% / 18.05% / 19.70%, giving a 35 times estimate in 2020, corresponding to a target price of 53.9 yuan, 21% growth space, maintain “highly recommended” level. Risk reminders: 1. Raw material prices are rising; 2. Insufficient demand and store operations are less than expected; 3. New business 北京夜网 development is less than expected

Aerospace Electrical Appliances (002025): Leading Intelligent Manufacturing of Military Connector Leads to New Machines

Aerospace Electrical Appliances (002025): Leading Intelligent Manufacturing of Military Connector Leads to New Machines
Leading enterprises in military electronic components, smart manufacturing and renewal of the machine, for the first time covered with a “buy” rating. 1) Leading companies in the field of military connectors and motors in developing countries, and as the only listed platform of the Tenth Academy of Aerospace Science and Technology.Compound growth rate of 23.3%, attributable to the mother’s net profit compound growth of 16.8%, through the steady growth gene through the economic cycle, will continue to benefit from the accelerated upgrade of our military equipment in the future.2) Focus on the civilian communications and new energy sectors, vigorously promote intelligent manufacturing, and steadily improve operating efficiency. The ROE reached 13 in 2018.34%.3) We expect the company to have EPS 0 in 2019-2021.98/1.22/1.44 yuan, corresponding to PE 25.7 X / 20.7X / 17.5X, combined with comparable company estimates and growth expectations, covers the company for the first time and gives the company a “Buy” rating. Leading military connectors, military products continue to grow at a high rate, and civilian products await 5G in the communications industry.1) Military products: The company’s connector has the first place in the aerospace city for a long time, and has the quality stability and high reliability of high-precision electronic components accumulated in the aerospace system for more than 50 years.All fields.The recovery of short-term transitional military products has accelerated, and the company has taken the lead as the upstream core supporting company. The revenue of 2019 H1 connector + 58%, and the merger of the “Thirteenth Five-Year Plan” military orders before the high and low, the military connector business gradually resumed highGrowth trend.2) Civilian products: The civil communications market for cards has continued to grow larger and stronger. Civilian communications revenue accounts for about 30%. 5G construction is poised to take off, and the turning point of the communications business is approaching. Track the capital expenditure and policy cadence of operators. After realizing 5G commercial use in pilot cities in 2019, it will gradually promote commercial use across the country.We judge that the company’s 5G business in the second half of 2019 will enter the heavy volume phase. The military micro and special motor faucet continues to grow rapidly, and the high-end relays help the development steadily.1) Micro special motor: The company is one of the three core suppliers of domestic military micro special motors. It has been supporting national major projects such as manned aerospace and lunar exploration projects for a long time. Its technical advantages and industry leaders are stable.The growth rate exceeds 18%. In the future, we will continue to benefit from the acceleration of the modernization of our military’s weaponry and equipment, and maintain high growth prospects.2) Relays: The company’s relay business mainly focuses on high-end military products, and has strict requirements on quality and reliability. The market demand is relatively rigid and stable, and the competition pattern is relatively stable. The 10-year compound revenue growth rate is 10.3%, it is expected to maintain steady development in the future. Intelligent manufacturing leads the way, improving quality and efficiency, and rejuvenating the new machine.1) The company has been engaged in intelligent manufacturing for nearly 10 years, and has a team of more than 100 intelligent manufacturing talents. In 2018, it passed the only state-level pilot project of intelligent manufacturing in Guizhou Province with a recognized acceptance.Into.2) Benefiting from the continuous improvement of automation, the company has achieved significant results in improving the quality of its operations and management. Since 2017, the company ‘s gross profit margin has stopped rising for the first time since listing, and rose to 36 in 2018.79%, fixed asset turnover continued to increase, reaching a new high of 5 in 2018.43. It is expected that the company’s operating efficiency is expected to be further consolidated and improved through the comprehensive rollout of intelligence in the future. Risk warning: Macroeconomic fluctuation risk; the risk of increased volatility in 青岛夜网 military orders.

Desai Xiwei (002920): High R & D dragged performance is about to return to the growth channel

Desai Xiwei (002920): High R & D dragged performance is about to return to the growth channel

Event: The company released its 2018 annual report: internally realized operating income54.

0 ppm, 10-year average of 10.

0%; net profit attributable to mother 4.

2 ppm, with a ten-year average of 32.

5%; net profit after deduction to mother 3.

6 trillion, sixth grade 41.


The company released the 2019 first quarter report performance forecast: from January to March, it is estimated that net profit attributable to mothers will be 35 million to 50 million yuan, a decrease of 68 year-on-year.

8% -78.


The industry’s prosperity continued to decline, and the revenue breakdown was in line with expectations. The company’s expected revenue in 2018 was 54.

0 million yuan, 10-year average of 10.

0%, we believe that due to the decline in the passenger car market, the passenger car production and sales in 2018 fell by 5.

2% and 4.


The sales volume of some of the company’s supporting models has decreased. For example, the sales gap between GAC GS4 and Great Wall H2 has widened, resulting in a decline in the company’s revenue in 2018 by 10.


Revenue expansion combined with the continued high income from research and development has dragged down the company’s performance in 2018. The company’s gross profit margin was 24.

0%, down by 1 every year.

8pct; period expense rate 8.

22%, rising by 0 every year.

56 points.

The sales, management, and financial expense ratios are 2 respectively.

9%, 南京桑拿网 12.

2%, 0.

1%, the sales and financial expense ratios decreased by 0.

57pct and 0.

At 11 points, the management expense ratio increased by 3.

15 marks.

We believe that the company’s three fees are basically stable, and the management fee has increased significantly. The company has increased its R & D investment in smart cockpit, unmanned driving and connected car.

The increase in R & D expenses for the increase in revenue in 2018 led to a decrease in the company’s profit decline.

2019Q1 Affected by the continuous fluctuation of the industry’s prosperity, the company’s profit decreased significantly.

We believe that the turning point in the automotive industry is approaching. The company will benefit from the combination of high-quality customers and consumption upgrades, and its performance will gradually improve.

Combining downstream quality customers + consumption upgrade, will soon return to the growth channel. The company has entered the global parts supply system of many well-known car manufacturers. As a Tier 1 supplier, it will directly participate in the simultaneous development of new models, and the supply relationship will exist for a long time.

Under the general trend of consumption upgrade, the pre-installation rate of automotive electronic products will gradually increase, and the company’s bicycle supporting value is expected to increase, bringing a rebound in performance.

The company plans ahead in the smart cockpit and ADAS markets, and it is expected to benefit from the explosive performance of the ADAS market in the future.

We expect the company’s revenue and profit to return to the growth channel in 2019.

Earnings forecast and investment recommendations predict that the company’s EPS for 2019-2021 will be 0.84/1.


26 yuan, corresponding to PE for 2019-2021 is 36.

1x, 28.

2 times, 24.

0 times, give the company an “overweight” rating.

Risk reminder: the industry’s prosperity is reduced, and sales are lower than expected

Evergreen (002391) 2018 Annual Report Comments: Product price increases, new products put into operation, etc., have significantly improved performance, and have improved operating targets in 2019 to maintain rapid growth.

Evergreen (002391) 2018 Annual Report Comments: Product price increases, new products put into operation, etc., have significantly improved performance, and have improved operating targets in 2019 to maintain rapid growth.
Event: Evergreen Co., Ltd. released its 2018 annual report, reporting and realizing operating income30.10,000 yuan, an increase of 33 in ten years.65%; realize net profit attributable to shareholders of listed companies.190,000 yuan, an increase of 40 in ten years.16%, press latest 3.Based on the total capital of 5.9 billion shares, the company realized a diluted income.89 yuan, the first operating net cash flow1.69 yuan. Among them, the fourth quarter realized operating income7.13 ppm, a decrease of 0 per year.32%; net profit attributable to shareholders of listed companies is 0.66 ppm, a ten-year increase2.50%. We maintain our investment rating of “Prudent Overweight”.Evergreen’s 2018 performance has achieved rapid growth, and its main product prices have increased to varying degrees every so often. At the same time, the company has maintained a relatively stable operating rate in the context of a decline in domestic pesticide production.In addition, the launch of a new product of the company’s Nantong base in February 2018 (epoxyconazole triazine and indoxacarb triazine) also contributed to the growth of performance. The company is a leading domestic manufacturer of pesticide raw materials. Its products cover more than 30 kinds of raw materials, such as herbicides, pesticides and fungicides, and more than 100 kinds of preparations. It has a rich product structure, complete research and development system, and outstanding safety and environmental protection comprehensive advantages.Since the second half of 2016, the prosperity of the pesticide industry has gradually picked up, with domestic safety built in, environmental protection regulations tending to become more severe, the supply and demand structure of the pesticide industry has improved, and the prices of pesticide raw materials have increased significantly.Looking ahead, the company’s business will gradually increase and the new product capacity of Nantong base and convertible bond projects will be released. The company’s performance is expected to increase steadily.We maintain the 厦门夜网 company’s EPS for 2019 and 2020 respectively.03, 1.The forecast is 27 yuan, and the EPS for dating 2021 is 1.The 48 yuan forecast maintains the investment rating of “prudent increase in holdings”. Risk reminder: the risk that the product boom will be reduced, and the risk that the construction progress of the new project will not meet expectations

Liuyao shares (603368) quarterly report comments: continued high growth results in line with expectations

Liuyao shares (603368) quarterly report comments: continued high growth results in line with expectations

The 3Q19 results were in line with expectations on October 29. The company released the third quarter report for 2019 and realized operating income / net profit attributable to mothers / net profit attributable to non-mothers 111.



41 trillion, an increase of 27 each year.

53% / 40.

10% / 38.

62%, of which in the third quarter of 19 realized operating income / net profit attributable to mothers / net profit attributable to non-mothers 39.



91 ppm, an increase of 22 in ten years.

46% / 41.

51% / 41.

27%, performance is in line with expectations.

We maintain our profit forecast and expect the company’s EPS for 2019-2021 to be 2.



19 yuan, maintaining a target price of 40.


46 yuan unchanged, maintain “Buy” rating.

In the first three quarters of 2019, the net interest rate increased, and operating cash flow improved to improve the company.

37%, an increase of 2 per year.

09 points.

The company’s sales / management (including R & D) / financial expenses in the first three quarters of 20192.

45% / 2.

07% / 0.

93%, an increase of 0 every year.



49pct, the sales expense ratio, management expense ratio and gross profit margin increase every year because of higher gross profit and higher expense of the proportion of pharmaceutical retail and industrial business.

The company’s net profit for the first three quarters of 2019 was 5.

45%, an increase of 0 every year.


Due to the natural mismatch of the upstream and downstream accounting periods of the industry, the faster the revenue growth of pharmaceutical distribution companies will result in increased operating cash flow pressure.

In the third quarter of 1919, the company’s net income from operating cash flow was -2, while its revenue increased rapidly.

Instead, 2.8 billion has improved previously (-2 in the same period last year.

5.6 billion).

The three main businesses go hand in hand, and the well-developed company’s main business is successfully completed: 1) Distribution: We expect the company’s distribution revenue to increase 20-25% from January to September 2019, and we expect to maintain that growth rate; 2) Retail: WeIt is predicted that the retail revenue of the company will increase by 45-50% from January to September 2019. It is expected that the number of stores will reach 600 by the end of the year. 3) Industry: Chinese herbal medicines continue to increase in volume. We expect revenue to reach 200 million. The sales 厦门夜网 of Metrohm Pharmaceuticals are affected by the expansionAnnual revenue is expected to increase by 15-20%.

The performance continued to grow at a high level. Maintaining the “Buy” rating for the company ‘s January-September 2019 results were in line with expectations. We maintain our profit forecast and expect the company to return to its parent net profit for 2019-2021.08/8.


86 ppm, an increase of 34% / 25% / 22% per year, the current expected corresponding PE for 2019-2021 is estimated to be 13x / 11x / 9x respectively.

Considering that the company’s performance growth rate far exceeds that of most comparable companies, we give the company a PE estimate of 15x-17x in 2019 and maintain a target price of 40.


46 yuan unchanged, maintain “Buy” rating.

Risk reminder: The drug collection promotion is beyond expectations; the growth of M & A targets is lower than expected.

Bright Dairy (600597): Profits in the first quarter are expected to be good

Bright Dairy (600597): Profits in the first quarter are expected to be good

Event company released the first quarter of 2019 Bright Dairy released the first quarter of 2019 report, the company’s operating income in the first quarter was 54.

52 ppm, a five-year increase of 5.

51%, profit attributable to mother 1.

41 ppm, a ten-year increase4.


Brief comment on the new capacity to contribute to the growth of revenue, the income and profits turned into positive growth in the first quarter of the company’s operating income54.

52 ppm, a five-year increase of 5.


The increase in revenue is mainly due to two aspects. One is to further optimize the product structure and increase the layout of fresh milk. The company’s truthfulness, Jianneng and other products continue to increase the company’s product structure. At the same time, in 2018, the company acquired Shanghai Yimin Food.No. 1 Factory Co., Ltd.’s 100% equity, the acquisition further enriched the bright dairy industry’s product categories and repeated the gap in the cold beverage business.

In terms of different products, liquid milk realized an income of 30.

56 ppm, a 10-year increase3.

22%; other dairy products realized income 17.

16 ppm, an increase of 19 in ten years.

42%; Livestock products achieved income 5.

One million yuan, a decrease of 19.

33%; other products achieved operating income1.

43% billion increase 17.


Among them, liquid milk and other dairy products are the company’s main products, accounting for 87% of total operating income.

53%, an annual increase of 8.


The second is the in-depth expansion of sales channels. As of the end of the reporting period, the number of dealers in Shanghai was 369, an increase of 13 from the end of 2018; 3344 overseas dealers, an increase of 58 from the end of 2018.

By region, the Shanghai region achieved operating income13.

80 ppm, a ten-year increase of 8.

86%; operating income in the field was 28.

66 ppm, a ten-year increase2.

76%; operating income from overseas regions11.

70 ppm, a ten-year increase of 7.


Return to mother’s profit1.

41 ppm, a ten-year increase4.


The increase in profits is mainly contributed by two aspects. One is the increase in profits brought by the increase in revenue; the other is the company’s expansion of promotional efforts. The decline in sales expenses has a positive effect on the increase in profits. Q1 sales expenses.

4.1 billion, a year-8.


In addition, impairment losses on assets in the first quarter amounted to 2,505 million, an increase of 40 per year.

40% is one of the main factors affecting profit; management expenses.

8.3 billion, +18 a year.71%; research and development costs of 15.3 million yuan, +26 for the whole year.

28%; financial expenses of 21.15 million yuan, +16 for the whole year.

35% have a negative impact on the company’s profits.

The gross profit margin decreased slightly, and the expense ratio decreased to maintain the net interest rate level. In the first quarter of 19, the company’s gross profit margin was 32.

24%, a decrease of 2 over the same period last year.

07pct, mainly due to the increase in raw material costs. It is understood that domestic Q1 raw milk purchase prices 深圳桑拿网 have increased slightly, putting pressure on dairy companies’ costs.

The company’s 2019Q1 net margin is 2.

59%, a decline of 0 every year.

At 03pct, the net profit margin declined slightly, and it received the effect of lowering the gross profit margin. From the expense ratio point of view, Q1 sales expense expenditure was 20.

92%, a decline of 3 per year.

54pct, has a certain effect on the rebound of net interest rate, mainly due to the company’s reduction of promotional efforts, reduction of promotional expenditures, improved management capabilities, and reduced storage costs.

In addition, the first quarter management expenses3.

35%, increasing by 0 every year.

33pct; R & D expense 0.

28%, increasing by 0 every year.

04pct; financial expenses 0.

39%, an increase of 0 every year.

03pct, the change is small.

Quality first, perfect channels The company has a stable supply of high-quality raw milk bases, and is one of the largest comprehensive livestock service companies in China.

In terms of channels, the sales model is mainly a combination of direct sales and distribution. The company has decades of experience in dairy product development, production, and sales. It has nationally well-known trademarks such as “Bright” and “Mouslian”.Products and channels spread across Shanghai, East China, Central China, South China, North China, Southwest and other regions.

Profit forecast: Overall, the company’s revenue will grow steadily. Through the company’s strengthening of channel construction and new product launches, the company’s product structure will continue to optimize and continue to contribute to steady growth.

It is estimated that the company’s net profit attributable to the parent company for 2019-2021 will be 4 respectively.

55, 4.

91 and 5.

36 trillion, the corresponding diluted EPS is 0.


40 and 0.

44 yuan per share, corresponding to PE of 27.

38, 25.

34 and 23.

twenty three.
Risk reminders: food safety risks; increased market competition risks; environmental protection risks; risk of failure to promote new products.