Great Wall of China (000066): Tianjin Feiteng’s surpassing expected autonomous hardware control platform is more solid

Great Wall of China (000066): Tianjin Feiteng’s surpassed-expected autonomous and controllable hardware platform is further strengthened

Event: China Electronics, the company’s controlling shareholder and actual controller, intends to hold Tianjin Feiteng 21 held by China Zhenhua.

46% of the shares were transferred to the company by agreement, and Tianjin Feiteng 13 which Huada Semiconductor will hold will continue to be promoted.

54% equity was transferred to Great Wall of China by agreement.

Investment Highlights Tianjin Feiteng’s equity transfer progress and proportion are beyond expectations. The company passed Tianjin Feiteng 13 held by Huada Semiconductor on March 17, 2017.

With the agreement of 54% equity transfer, the counterparty of the part of Tianjin Feiteng shares to be acquired this time will be expanded from the original Huada Semiconductor to Huada Semiconductor and China Zhenhua, and the proposed acquisition ratio will also be from the original 13.

54% increased to 35.


Absolutely whether the progress of the transfer or the shareholding ratio exceeded market expectations.

Both Tianjin Feiteng and Great Wall of China are important components of the independent and controllable business ecological chain of China Electronics Group. The transfer is also to further the professional integration of the independent and controllable business. The focus of China Great Wall as the group’s hardware platform is more prominent, andIt will enhance the company’s overall strength in the construction of an autonomous and controllable ecosystem.

The performance and ecology of Tianjin Feiteng chips meet the industrialization conditions, and the business has also entered a profit period. Among the existing products compatible with the ARMv8 instruction set, Tianjin Feiteng FT-2000 + / 64 has single-core computing capabilities, single-chip parallel performance, andThe chip cache’s consistency scale, access volume and storage indicators are at the international advanced level, which can replace high-performance, high-throughput server areas, such as large-scale business hosts and high-performance server systems that require high processing and throughput capabilities.And large internet data centers.

At present, domestic operating systems and domestic software products have also completed the full adaptation work on the FT-2000 series 杭州桑拿网 chip platform.

According to the Air Force Huada Semiconductor property rights transfer agreement, Tianjin Feiteng’s 2016 revenue was 1945.

790,000 yuan, net profit is 22.

270,000 yuan, has achieved a slight profit, we expect that Tianjin Feiteng has entered a stable profit period.

The overall profit level of the company is expected to further increase: Tianjin Feiteng, as a necessary chip supplier for the company’s independent controllable business, will increase the company’s profitability in terms of independent controllable business after the completion of the distribution and transfer.

At present, the company has made major breakthroughs in the e-government and civilian products markets with the “PK” computer system and domestic cloud solutions of Feiteng CPU + Kirin OS. It has been able to meet the initial office 杭州桑拿网 requirements and has also adapted to many internal Internet cloud computing platforms.
As the most mature autonomous controllable system in the market, it will definitely take the lead in benefiting from this round of domestic volume.

Earnings forecast and investment grade: EPS is expected to be 0 in 2019-2021.

36 yuan / 0.

43 yuan / 0.

51 yuan, currently the corresponding PE is 27/23/19 times.

Autonomous and controllable is expected to begin large-scale volume next year. The company’s PK system, as the most comprehensive domestic ecological system in the country, will continue to benefit, maintaining a “Buy” rating with a target price of 13.

09 yuan.

Risk warning: the progress of reorganization and integration exceeds expectations; autonomous and controllable advancement is less than expected

Linglong Tire (601966): It plans to publicly issue 2 billion more funds to accelerate the construction of Jingmen Project

Linglong Tire (601966): It plans to publicly issue 2 billion more funds to accelerate the construction of Jingmen Project

Investment highlights: Company announcement: The company plans to publicly issue additional A shares, the total number of shares does not exceed 100 million shares, and the size of the raised funds does not exceed 2 billion, of which 1.4 billion US dollars will be used for Jingmen’s annual production of 8 million sets of semi-steel and 1.2 million sets of all-steelTire project, $ 600 million to supplement working capital.

The issue of the public additional issue has been approved by the company’s board of directors, and still needs to be approved by the shareholders’ general meeting and the China Securities Regulatory Commission.

This issuance is a public offering to unspecified objects. The two will assign a preferential placement to all shareholders of the company registered on the distribution registration day after the market closes. The placement ratio is authorized by the board of directors and its authorized personnel at the general meeting of shareholders.Institutional consensus is determined.

The issue price of this additional issue is not lower than the average price of the company’s stocks on the 20 trading days before the announcement of the prospectus or the average price of the company’s stocks on the previous trading day.

  The funds raised will be invested in the Jingmen factory, which will break through the expansion of production capacity and expand market share.

With the rapid development of the domestic automobile industry, the domestic automobile ownership has steadily increased, and by the end of 2019, the automobile ownership has reached 2.

600 million vehicles, an increase of 8 at the end of 18 years.


The growth of the automobile market has driven the company’s tire production and sales to continue to grow. In the past three years, the company’s production capacity has been maintained at a high level, and the problem of insufficient production capacity has gradually emerged.

In order to strengthen the company’s mass scale, the company built 5 production bases in China and 3 production bases overseas in accordance with the “5 + 3” strategy.

  The funds raised from this additional issue will be invested in the fourth domestic production base-Jingmen Base.

According to the feasibility study report released by the Air Force Company, the Jingmen plant will form a total capacity of 12 million sets of semi-steel tires, 2.4 million sets of all-steel tires, and 60,000 sets of engineering tires. The project is divided into three phases and the total investment is about 5.4 billion.yuan.

The 8 million sets of semi-steel and 1.2 million sets of all-steel invested in this raised fund are the first two phases of the plant, with a total investment of about 3.1 billion yuan.

The additional funds raised in this issue will accelerate the construction of the first two phases of the project and lay a good foundation for the third phase of the project.

In addition, the additional issuance and reorganization optimized the company’s capital structure. As of September 30, 2019, the company’s assets and liabilities replaced 57.

75%. The use of funds raised through this issuance to supplement liquidity can improve the ability to repay short-term debt, reduce the level of debt ratios, and improve the ability to resist risks.

  The Jingmen plant and the Serbian plant will be the main driving force for the company’s performance growth in the next two years.

In 2019, the company benefited from the release of production in Thailand and the Liuzhou plant, as 南宁桑拿 well as the increase in the gross profit margin of tires caused by the decline in raw material prices. The company’s net profit increased and the company achieved operating income of 125 in the first three quarters of 19.

09 million yuan (+13 compared with the same period last year).

26%), net profit attributable to mother 12.

1.4 billion (+ 37% YoY).


The company’s output growth from 2020-2021 will be mainly contributed by the Jingmen plant and the Serbian plant. In late November 2019, the first full-steel tire at the Jingmen plant was rolled off the production line; in mid-January 2020, the first semi-steel at the Jingmen plantTires are off the assembly line. One million full-steel tires and 3.5 million sets of semi-steel tires in the first phase of the project are in trial production. It is expected to 西安耍耍网 contribute to production from mid-2020; according to the company’s plan, the Jingmen factory will be completed in May 2021 and all civil works will be completed.Engineering and production equipment installation.

Among them, the first two phases of the project are expected to achieve an annual sales income of 21 after reaching production.

63 ppm, net profit1.

9.6 billion.

The Serbian project also laid the foundation stone laying ceremony in March 2019. The factory plans to form an annual production capacity of 12 million sets of semi-steel tires, 1.6 million sets of all-steel tires, 20,000 sets of engineering tires and agricultural radial tires. The first phase of the project is expected to be completed by the end of 2020.Will be put into production.

The successive commissioning of Jingmen and Serbian factories will become the company’s continuous growth driver.

  Supporting market news spreads frequently and continues to strengthen brand building.

In January 2020, Germany’s MAN Commercial Vehicle Co., Ltd. conducted an on-site audit of Thailand’s Linglong. Eventually, Thailand’s Linglong all-steel tire factory passed the audit and successfully entered its supplier system.

Mann’s commercial vehicle products cover medium / heavy / super heavy trucks, special vehicles, city buses, and luxury vehicles. It is a world-class commercial vehicle brand.

Thailand Linglong successfully entered the Mann supporting system, which confirms that Thailand Linglong has developed in the past ten years and has reached international advanced levels in technology research and development, quality management, and timely delivery.

At the same time, this has also accelerated the internationalization of the brand for Linglong Tire, which has broken a solid foundation for high-end.

With the company’s continued deep cultivation and innovation in core technology research and development, emerging market development, brand value building, and diversified after-sales service, the company is gradually entering first-class automobile factories such as Audi, Volkswagen, GM, Ford, Renault Nissan, Red Flag, Geely, Great Wall and otherSupporting supply system.

In 2020, the company’s supporting system will continue to march into high-end models, and further increase the share of existing customers, increase the sales of supporting markets, increase product added value, and strengthen the leading position in the industry.

  Profit forecast and investment grade: Maintain the company’s profit forecast for 2019-2021, and expect to realize net profit attributable to mothers.

00, 17.

80, 20.10ppm, corresponding to PE 18X / 16X / 15X, maintaining the “overweight” level.

China Railway Industry (600528) Interim Report 2019: Accelerated growth in revenue and return to profit will benefit marginal improvement in railway investment

China Railway Industry (600528) Interim Report 2019: Accelerated growth in revenue and return to profit will benefit marginal improvement in railway investment

In 2019H1, the company’s various business revenues accelerated and attributed to the increase in net profit of the mother 21.

2%, the shield machine increased by 26 in the new millennium.

2%, domestic turnout orders increased by 2.

6%; Marginal improvement of railway investment in H2 in 2019 is expected, waiting for the bidding of key engineering projects to start.

It is estimated that the company’s net profit attributable to its parent will be 17-20.

15, 20.

55 and 23.

66 ppm, an increase of 15 in ten years.

8%, 19.

9% and 15.

1%, maintaining the “highly recommended” rating.

H1 business revenue accelerated growth, and a slight increase in profit contributed to the increase in net profit attributable to mothers21.

2% 2019H1 company total revenue of 95 million US dollars, an increase of 18 year-on-year.

4%, the growth rate increased by at least about 13 units; of which the tunnel construction (shield machine) equipment revenue 21.

4 ppm, an increase of 21.

8%, turnout business 21.

500 million, an increase of 10.

2%, 38 for steel structure manufacturing and installation.

30,000 yuan, an increase of 19.

8%, 5 ppm for construction machinery, an increase of 41.

2%; overall gross profit margin 21.

09%, an increase of about 0 a year.

Nine single ones, mainly due to the increased profitability of steel structures, and the expense ratio during the period was 11.

1%, an increase of about 1 unit per year, mainly due to the increase in management expenses and R & D expenses by 26.

7% and 43.

7%, net profit attributable to mother 8.

61 ppm, an increase of 21 per year.

2%, after deducting non-growth 19.


The new long-term orders for H1’s core business are growing well, or it will benefit the marginal improvement of railway investment in H1’s new growth orders for 2019.

7 ppm, a year-on-year decrease of 5%; but the new growth of the shield machine business, which contributed to the increase in net profit, was US $ 4 billion, exceeding the growth of 26.

2%, domestic railways have broken through the new decade.

4ppm, an increase of 2 per year.

6%; new ten-year order for manufacturing and installation of steel structures.

4 ‰, a year-on-year decrease of 22%, but the business’s new year 2018 alone was 14.2 billion yuan, a year-on-year increase of 43%. We believe that the company’s steel structure business has more 北京桑拿 orders in hand at the end of 2019H1, waiting for the 2019H2 key project tenders to start.

We expect that China’s railway investment margin will improve in 2019-2020. China Railway Industry’s steel structure, shield machine and railway crossing business will rank first in China, and will benefit from the 2019-2020 margin improvement in railway investment.

Increased product research and development, expanded new application areas, and completed the development of tram prototype cars in 2018, H2 and 2019H1, the company’s R & D expenses increased by 58 at the same time.

5% and 43.7%, increase 45 scientific research projects, expand the shield machine from the urban rail to the national railway, municipal corridor, water conservancy project and coal mine, etc., build the world’s first automatic hob assembly and inspection 杭州夜网论坛 production line;The development of low-speed magnetic levitation, suspended monorail and other vehicle prototypes. The China Railway Maglev Development Company was established in Xuzhou to actively promote the implementation of new standard rail transit projects.

Risk warning: the risk of order delivery across the year and the risk of raw material price fluctuations, etc.

Cree Electromechanical (603960): Orders increase and automotive electronics circuits deserve long-term optimism

Cree Electromechanical (603960): Orders increase and automotive electronics circuits deserve long-term optimism

Key points of investment: The company released the 2018 annual report, and the company realized operating income5.

8.3 billion, an increase of 131 over the previous year.

51%; net profit attributable to shareholders of listed companies was 65.16 million yuan, an increase of 32 over the previous year.


It is proposed to distribute a cash dividend of 0 to every 10 shares to all shareholders by converting capital reserve into share capital.

97 yuan (including tax), and increase 3 shares for every 10 shares to all shareholders.

Ping An’s point of view: Revenue was slightly higher than expected, and orders in hand were full: the company’s business is mainly divided into two parts: 北京会所体验网 automation equipment and auto parts. The revenue of the automation equipment business in 2018 was 3.

13 ppm, an increase of 24 in ten years.

4%, slightly lower than our Air Force’s forecast (3.

5.8 billion), mainly due to the slower-than-expected delivery schedule of some major customers; revenue from auto parts business2.

6.9 billion, exceeding our Air Force’s expectations (1.

7.9 billion).

The company’s overall gross profit margin is approximately 28.

01%, down from 35 in 2017.

70%, mainly due to the consolidation of Shanghai Zhongyuan.

The company received new automation equipment orders in 20184.

780,000 yuan, an increase of 1 over 2017.

1.5 billion, an increase of 31.

68%. At present, the company has sufficient orders on hand, and the main downstream of the company’s automation equipment business will maintain a high level of prosperity in the next few years. Therefore, looking forward to 2019, we believe that the company’s performance can achieve a rapid growth basis.

The increase in new energy vehicle penetration will continue to drive the prosperity of the automotive electronics industry: We believe that benefiting from the continuous increase in new energy vehicle penetration, the increase in automotive electronics penetration in the next few years is a deterministic trend.

Annual sales of new energy vehicles in 2018 reached 125.

60,000 vehicles, an increase of 61 in ten years.

7%, benefiting from the promotion of the double-points policy, the production and sales of new energy vehicles will continue to grow rapidly in the next few years, which is also the general trend in the long run.

According to statistics, automotive electronic components can account for 65% of the cost of new energy vehicles (about 28% of high-end fuel vehicles), and the major automotive electronic component suppliers are highly motivated to build capacity.

In addition, the increase in penetration of new technologies such as autonomous driving will also bring broad demand for automotive electronics, and related automation equipment is worth optimistic for a long time.

The performance of Shanghai Zhongyuan was slightly better than expected. The phasing out of National V will bring a rapid development trend: in the next few years, the National V standard fuel vehicles will be gradually phased out, and the National Six standard will be promoted.During the National VI process, the price of single products is expected to increase significantly, and it will bring considerable performance increases to listed companies.

Beijing, Tianjin, Shandong, Guangdong and other regions took the lead in implementing National Six emission standards in 2019. Since then, the progress of promotion to the country has exceeded expectations.

Investment suggestion: Cree Electromechanical is a scarce standard in the field of automotive electronics automation equipment, and has established a stable cooperative relationship with Bosch customers. At present, Cree Electromechanical’s main domestic competition is from overseas automation equipment suppliers, and the import substitution trend will be obvious in the future; In 2018, the company has entered the Bosch global supply system, opening up new space for the company’s future development.

Shanghai Zhongyuan, an auto parts company acquired by KLE, is one of the main suppliers in the Volkswagen system and is optimistic about the synergy between it and its parent company.

Considering the possible increase in financial expenses, we have made minor adjustments to the company’s 2019-2020 performance forecast, and it is expected that the EPS for 2019-2021 will be 0.

89 yuan, 1.

15 yuan, 1.

42 yuan (2019-2020 before the EPS estimate of 0.

89 yuan, 1.

20 yuan), corresponding to the current sustainable price-earnings ratio of 38.

8 times, 30.

0 times, 24.

2 times.Maintain the “Recommended” level.

Risk reminders: (1) Risk of order delivery being less than expected: If the company’s large order in hand is postponed, there is a risk of potential impact on the current performance.

(2) Risk of instability of large customer orders: In the business of listed companies, United Electronics and Volkswagen provide subdivided partial orders, and the company has the risk of high customer concentration.

(3) Risks of potential entrants grabbing market share: Automation equipment suppliers that have an advantage in the consumer electronics field may enter the automotive electronics industry’s 杭州夜生活网 food market.

Riyue Co., Ltd. (603218): Wind power casting leader opens a new chapter in production expansion

Riyue Co., Ltd. (603218): Wind power casting leader opens a new chapter in production expansion

Investment Logic Recommendations: 19?
The recovery trend of the wind power industry in the past 20 years is obvious. As a leader in wind power castings, the company will fully benefit from the recovery of the industry; the company will start a new chapter in production expansion. The casting production capacity will reach 4 billion US dollars by the end of 19 years, and the city’s share will further increase steadily.The expansion of debt to increase the production capacity and improve the supporting capacity of finishing will effectively increase the gross profit margin; the company ‘s cost advantage is expanded, the gross profit margin is 10 increments higher than the industry average, and the net profit margin is 15 outstanding.

The recovery trend of the wind power industry is clear, and the demand for wind power castings is worry-free: As a new energy, wind power is divided from traditional energy sources, with low environmental costs, wide distribution and huge energy storage.

As of the end of 2018, domestic wind power was gradually installed1.

800 million kilowatts, accounting for 9.

7%, the proportion is still at the expected level, and the space length will be increased in the future.

After the Sanbei Expressway, structural adjustments of wind power installations led to domestic 16/17 years. After March 2018, the red forecast of the Sanbei area was lifted. The growth potential is huge. At the same time, the wind abandonment rate continues to improve. The wind speed in Q1 2019 has decreased significantly.4.

5 up to 4%, to further improve wind power operation IRR, wind power industry 2019?
The rush installation will be partially determined in 2020, currently 2.

0MW wind turbine tender prices rebounded from the September 18 lows 6.

At 7%, the prices of parts and components also began to rise, and the industry’s recovery trend was obvious.

The company’s production capacity expansion is leading the industry, and the city’s share has gradually increased. Since 2011, the production capacity of Sun and Moon has been actively expanding, but its scale production capacity has been stagnating for many years.

At present, there are four domestic companies with a production capacity of more than 10 inches, namely Riyue Heavy Industry (40 inches), Jixin Technology (16 inches), Yongguan Group (18 inches), Shandong Longma (10 inches), and overseas only Gebo (14.

5 mm) production capacity exceeds 10 mm.

The company’s average capacity scale and capacity utilization rate surpassed the second and third place in the industry, leading the consolidation of solid.

Profitability is far ahead: The company’s gross profit margin continues to be ahead of it, and the gap between the company and its segmentation continues to widen in the case of a downward trend in the wind power industry 15 years later.

Entering 2018, due to various factors such as rising raw material prices, the industry’s gross profit margin has fallen sharply. Jixin Technology’s gross profit margin is only 3.

3%, Jiali Technology gross margin is only 9.

4%, Yongguan Energy is only 13.

4%, compared with 21 for the same period.


At the same time, the company’s scale expansion occurred, and the three rates continued to fall, resulting in a gradual increase in the difference between the net interest rate and the accompanying net interest rate.

In addition to the 9% net margin, peers have improved comprehensively.

Earnings forecasts and investment advice.

EPS are expected to be 0 in 19-21.

89, 1.

37, 1.

70 yuan, the 夜来香体验网 net profit attributable to the mother in the next three years will maintain a compound length of 47%.

The company’s cost advantage has significantly expanded its scale expansion, covering it for the first time, giving it an “overweight” rating.

Risk warning: the risk of raw material prices or large fluctuations, or the risk of wind power industry repairs or less than expected.

China Communications Construction (601800) quarterly report comments: Q3 gross margin decline narrowed optimistic about the fundamental recovery of Q4

China Communications Construction (601800) quarterly report comments: Q3 gross margin decline narrowed optimistic about the fundamental recovery of Q4

In the third quarter, the decline in gross profit margin narrowed. The company that maintained the “overweight” rating released the third quarter report. In the first three quarters, it realized revenue of 374.7 billion yuan, an increase of 14% year-on-year.

7%, deduct non-attributed net profit yoy-0.

75%,杭州桑拿网 slightly lower than ours and market expectations. We judge that the decline in profitability of the main business is still initial, but the decline in gross profit margin in the first three quarters was narrower than that in the interim report.

In the first three quarters, the company’s CFO increased by US $ 38.2 billion and repeated US $ 7.8 billion more than a year. We expect that the company’s cash flow in the Q4 centralized collection period is expected to improve significantly.

The company also announced the termination of CCCC’s dredging distribution transfer and pilot program. We judge that CCCC’s dredging will continue the reform process in other ways in the future.

We judge the profitability of Q4 is expected to rebound, and EPS1 is expected in 19-21.



45 yuan, corresponding to the target price of 9.


0 yuan, maintaining the “overweight” level.

Q1-Q3 company’s single-quarter revenue growth rate was 9.

6% / 19.

9% / 11.

9%, Q3 revenue growth remained at a high level but improved compared to Q2, Q1-Q3 single quarter net profit growth attributable to mother 14.

5% /-2% / 1.

At 7%, the non-profit decline in the three quarters of the report was narrowed compared to H1.

The company’s gross profit margin in the first three quarters was 11.

82% downgraded by 1 every year.

36 points, the decrease was narrower than the mid-term report.

63pct, we expect that the company’s overseas major project revenue recognition will gradually enter the track, and its impact on the company’s gross profit margin is expected to narrow. It is expected that the gross profit margin of Q4 is expected to continue to recover.

In the first three quarters, the company’s CFO has expanded. We judge that the decline in the company’s cash-to-cash ratio is greater than the cash-to-cash ratio, but Q4 is often the peak of the repayment. We expect that after the government investment regulations are issued, most of the company’s repayments are expected to improve.The matching between net amount and profit has improved.

The overall operating efficiency has improved, and the proportion of increase in R & D expenditure has increased. In the first three quarters, the company’s sales / management / finance / R & D expense ratio was 0.

19% / 3.

41% / 1.

16% / 2.

62% change over the year -0.

02 / -0.

39 / -0.


At 23pct, we believe that the sales and management expense ratio has increased the efficiency of downlink operations, and the company’s interest expenses have increased in the first three quarters.

6% is faster than the income growth rate, but the income contribution of investment category projects to the downward contribution rate of financial expenses.

In Q3, the company’s R & D expenses increased by 48% per year. We expect the company’s R & D expenses in Q4 to be committed to maintaining higher growth.

In the first three quarters, the company’s impairment loss as a percentage of its income continued to decrease by zero in the case of some bad debts.

18 points.

At the end of Q3, the company’s debt ratio was 74.

96% downgraded by 1 every year.

3pct, but long-term and short-term borrowings and bonds payable account for 31 of the assets.96%, an increase of 0 from the end of the third quarter of the previous quarter.

67 points.

We are optimistic that the fundamentals of Q4 will continue to pick up, maintaining the “overweight” rating. The company’s new extension orders in the first three quarters extended the growth rate by 12.

2%, engineering / dredging / design growth rate of 12.

6% / 18.

7% /-8.

6%, the project growth rate is slightly reduced but the design improvement is picking up. At the same time, the municipal environmental protection orders in the engineering business increased by 87%, a significant increase in the proportion. We expect the company to increase its order value growth in the future after expanding the development of municipal and housing constructionExpect to weaken.

In the first three quarters, the company ‘s gross profit margin fell more than we expected. Based on this, we lowered the company ‘s EPS in 19-21 to 1.



45 yuan (previous value was 1.



50 yuan), current comparable company Wind unanimously expected 19 years PE7.

6 times, we think that the company’s asset quality and operating capacity are generally stronger than the average of comparable companies, and we recognize that it will give 8-10 times PE in 19 years, with a target price of 9.


00 yuan, maintaining the “overweight” level.

Risk warning: Q4 project payback is less than expected; gross profit margin of construction business is lower than expected.

SDIC Power (600886): 3Q19 results are in line with expected financial expenses, and investment income growth boosts earnings

SDIC Power (600886): 3Q19 results are in line with expected financial expenses, and investment income growth boosts earnings

The 3Q19 results were in line with our expectations of the 3Q19 results announced by SDIC Power: revenue of 12.6 billion US dollars, +1 each time.

1%; net profit attributable to mother, 21 ppm, +1 in ten years.

6%, in line with expectations.

  In the first three quarters, the company realized revenue of 32.2 billion yuan, a year-on-year increase of +6.

5%; net profit attributable to mother is 4.3 billion yuan, +20 for the whole year.


  The thermal power sector continues to contribute to profitable growth, replacing the additional impact of hydropower prices.

In the third quarter of 2019, the company’s net profit attributable to mothers increased further1.

6%, of which we expect the thermal power sector to fully increase its profits, benefiting from the 9% increase in electricity generated by the increase in the use of thermal power units and the continued change in fuel costs, which offset the negative impact of lower electricity prices in the hydropower sectorYalong River Hydropower’s third-quarter profit fell 9% year-on-year).

  In addition, financial expenses have fallen and investment income growth has also driven performance.

In the third quarter, the company’s financial expenses increased by 10% due to lower financing costs, and the increase in investment income from participating companies increased the company’s overall investment income by 34%.

  Development Trend The GDR issuance has been approved by the CSRC and is awaiting the listing of the London Stock Exchange.

On October 29, the company received the approval from the CSRC and approved the issuance of 0.

6.8 billion Global Depositary Receipts (GDRs), corresponding to A shares6.

800 million shares, accounting for about 10% of the company’s current share capital.

At present, the company’s listing on the London Stock Exchange is progressing in an orderly manner, awaiting the results of the approval of the relevant UK securities regulatory authorities.

  Earnings forecasts and estimates take into account that the company’s financial expenses and investment income in the first three quarters are better than expected, and that the risk of hydropower prices on the Yalong River in the fourth quarter is basically 北京夜网 eliminated, we raised our net profit for 2019/20 by 8% / 6% to 48.


700 million.

  The company currently expects to correspond to 2019/20201.

4 times / 1.

3 times price-to-book ratio.

Maintain Outperform rating and 9.

Target price of 64 yuan, corresponding to 1.

6x 2019 P / B ratio and 1.

5 times the 2020 P / B ratio, compared with the recent inclusion of 12.

0% upside.

  Risks came in below expectations and coal prices fell below expectations.

Weiming Environmental Protection (603568): The inflection point of investment for centralized project operation has arrived

Weiming Environmental Protection (603568): The inflection point of investment for centralized project operation has arrived

Key points of the report Waste incineration faces industrial investment opportunities. The company’s main industry; its solution is domestic waste, which is closely related to people’s lives. It is a public service necessity and has high stability of consumer goods.

For this industry, the later stage of large-scale capital expenditure is a better time to invest. Enjoy the improvement of profitability after operation (resonance of profit growth and ROE improvement) and the rapid increase in dividend payout after completion of loan repayment (high score ratio). Two waves of investmentopportunity.

At present, the domestic waste incineration industry is in the peak period of capital expenditure. It is expected that 2020 will be the highest point of industrial capital expenditure, and the time for investment in the industry has arrived.

The optimization of the incineration industry structure and the brand benefits have achieved the expected. From the perspective of past years of operating capacity, the new operating capacity in 2015-2018 was 2 respectively.




Every day / day, the gradual transition of environmental sanitation continues to develop, 四川耍耍网 and the demand for domestic garbage disposal increases. In 2016, the new operational capacity was accelerated, and the 2019 M1-10 operational capacity was 4.

6 days / day; as of October 2019, the cumulative operating capacity of the entire industry is 45.

2 days / day.

From the perspective of industry concentration, the annual operating capacity of the 13 companies in the domestic waste incineration industry that broke through the scale has shown an overall trend in the industry. From the perspective of each year’s new operating projects, the proportions in 2015-2018 are41.

7%, 50.

9%, 42.

5%, 60%, M1-10 accounted for 85 in 2019.


In the foreseeable future, the concentration of the waste incineration industry in Croatia will further increase.

The company’s higher profitability comes from the company’s entire industry chain advantages and cost control capabilities. The company’s profitability indicators are generally much higher than their peers (ROE / ROIC / ROA / gross profit rate / net interest rate). The core reason is that the company’s equipment self-sufficiency rateGo to the equipment supplier to earn the difference, and at the same time, the company has achieved industry excellence in terms of personnel cost control, capital use efficiency and management personnel expenses.

The company focuses on waste incineration equipment + operation, has experience advantages in the running-in of equipment and projects, expands the attributes of private enterprises, achieves higher profitability than the industry, and has the ability to resist industrial risks that may face in the future.

The company’s projects are concentrated and put into operation in the last 3 years. The company’s main business is incineration and equipment, and it is also deploying solid waste industrial chain services such as kitchens and sanitation. The incineration production capacity is expected to reach nearly 3 inches per day by the end of 2021.It is 2 in early 2019.

Seven times, the equipment business is also expected to achieve high growth driven by the peak period of the incineration project operation. The last two years have been two years of rapid growth in the company’s performance.

It is estimated that the company’s net profit attributable to mothers for 2019-2021 will be 9 respectively.



700 million, the corresponding PE is 24x / 16x / 12x respectively, giving a “buy” rating.

Risk Warning: 1.

National subsidy risk of downhill; 2.

Project progress is lower than expected risk.

Zhaoyan New Medicine (603127): Performance meets expectations and waits for new capacity to be released

Zhaoyan New Medicine (603127): Performance meets expectations and waits for new capacity to be released

The company released its 2018 annual report.

The company released its 2018 annual report and achieved revenue in 20184.

09 million yuan, an increase of 35 in ten years.

69%, net profit attributable to mother 1.

08 million yuan, an increase of 41 in ten years.

72%; net profit after deducting non-attribution to mothers is 90.29 million yuan, an annual increase of 36.

92%; from a single quarter in the fourth quarter, revenue was 1.

6.5 billion, an annual increase of 25.

50%, net profit attributable to mother is 51.12 million yuan, an annual increase of 22.

33%; net profit after deducting non-return to mother is 46.85 million yuan, an annual increase of 25.


The company’s revenue and profit end achieved rapid growth in 2018, in line with expectations.

From the perspective of 2018, the company realized revenue, net profit 杭州夜网论坛 attributable to mothers and net profit after deductions were 4 respectively.

0.9 million yuan, 1.

08 million yuan, 90.29 million yuan, the annual growth rate was 35.

69%, 41.

72%, 36.

At 92%, both the income side and the profit side achieved rapid growth, in line with our expectations.

The company’s non-net profit growth rate in 2018 was lower than the growth rate of net profit attributable to the company. The leader in wealth management was 7.97 million (2017: 1.93 million), and this is the company’s pre-collection business model brings strong cash flowThe dividend is expected to continue.

The release of new capacity in 2019 will bring about a performance explosion.

The company has 800 million orders in hand at the end of 2018, which is limited by the inability to release its capacity.

The company’s additional production capacity will be put into production in 2019, supporting the explosive growth of the company’s main business pre-clinical research: 1) Suzhou Zhaoyan: Suzhou Zhaoyan has completed nearly 1.

40,000 square meters of animal room decoration, of which 2,700 square meters of animal quarantine building has been put into use in June 2018, the remaining one.

08,000 square meters of animal property can be put into use in April 2019.

2) Beijing Zhaoyan: Beijing Zhaoyan has completed the renovation of the small animal room on the first floor of Building 2, increasing the area of barrier facilities by 750 square meters. It is expected to be available in May 2019.

3) Overseas: The company ‘s reported scale increased its US $ 30 million to US $ 40 million in its wholly-owned subsidiary “Zhaoyan California” to further expand the “Zhaoyan California” business scale. The existing 6000 square meters of production capacity in San Francisco will help gradually use itProvide support for Zhao Yan’s subsequent rapid development of the company’s overseas business.

Profit forecast: We expect the company’s net profit attributable to its mother to be 1 in 2019-2021.

62, 2.

24, 3.

07 million yuan, an increase of 49 in ten years.

4%, 38.

4%, 37.

0%, the current sustainable corresponding PE is 46x, 33x, 24x, maintaining the “buy” level.

Risk Warning: The investment in innovative drugs is less than expected; the potential domestic new capacity is released.

Yongxin shares (002014): Performance meets expectations and maintains a high percentage of dividends

Yongxin shares (002014): Performance meets expectations and maintains a high percentage of dividends

Investment Highlights The company released its 18-year annual report: reporting and realizing revenue23.

32 ppm, an increase of 16 per year.

13%; net profit attributable to mother 2.

25 ppm, an increase of 9 per year.

66%; net margin is 9.


In Q4, the company achieved revenue of 6.

73 ppm, an increase of 17 in ten years.

43%; net profit attributable to mother 0.

7.6 billion, an increase of 9 per year.


The performance was in line with expectations.

The main business grew steadily, and the customer structure was of high quality: (1) The company’s business covers color printing composite packaging materials, plastic flexible packaging films, aluminized packaging materials, and ink business. Among them, the main business color printing composite packaging materials had an income of 19 in 18 years.

51 ppm, an increase of 15 in ten years.


Supporting the development of color printing composite packaging projects, the company actively builds plastic flexible packaging film production lines and completes the initial integrated layout by acquiring Xinli Ink.

The total revenue of Xinli Ink in 16-18 is 4,980.

0.6 million yuan, fulfilling performance commitments and depreciating the value of all shareholders’ equity.

(2) As a domestic leader in soft plastic bags, the company’s customers are mainly domestic and foreign large manufacturers.

Based on high-quality customer structure, the company’s gross profit margin has performed well, and the gross profit margin of color printing composite packaging business in 18 years has reached 23.


In addition, the company’s ability to develop new customers and orders at home and abroad has continued to improve. The top five customers accounted for 24% of sales in 12 years.

58% dropped to 16 in 18 years.


The overall gross profit margin fluctuated slightly, and it may improve in 19Q1: the raw materials required by the company are mainly petroleum derivatives, and its profitability is affected by fluctuations in crude oil prices.

From 17 years to now, the international crude oil futures prices have slowly rebounded, corresponding to the 18-year gross profit margin fluctuations of Yongxin shares, thereby achieving a comprehensive sales gross profit margin.

95%, a decrease of 0 compared with the same period of 17 years.

75 points.

In the fourth quarter of 2018, the price of crude oil futures fell in a single quarter. At present, the prices of Brent / WTI crude oil futures fell by 23 from the previous October 1.

26% / 26.

29%, which is expected to be better than the company’s 19Q1 gross margin improvement.

The three rates remain stable, and R & D investment has increased significantly: the report and the company’s total three rates.

54%, rising by 0 every year.

17 points.

The total sales expenses are 0.

990,000 yuan (selling expense ratio decreased by 0.

17 points to 4.

23%), mainly due to the increase in the decline in sales and service fees; the management + R & D expense rate also increased by 0.37 points to 6.

44%, total management and R & D expenses1.

50,000 yuan, of which employees’ salaries also increased by 13% to 0.

6.3 billion, total research and development expenses 0.

6.6 billion (R & D expense ratio 2.

83%); financial expense ratio is basically the same as last year.

Taken together, the company achieved a net profit margin of 9 in 18 years.

66%, a decrease of 0 compared with the same period last year.

57 carats.

The operating cash flow is good, and the inventory turnover rate is rising: two reports are reported, and the company achieved net operating cash flow3.

2.4 billion, an increase of 16 in ten years.

78%, basically matching the company’s revenue growth rate.

In terms of operating conditions, the company’s inventory turnover days were 61.

14 days, down 7 from the same period last year.

In 47 days, the company’s inventory management level improved; the account receivable turnover days were 65.

01 days.

The company reported that machinery and equipment added to the expansion of production capacity and construction in progress carried forward fixed assets, with fixed assets reaching 6 at the end of the period.

92 billion, compared 佛山桑拿网 with 6 at the end of 17 years.

7.2 billion increased slightly.

Actively expand production capacity and promote industrial chain support: The company actively expands production capacity in response to market demand. Through three bases in Huangshan, Guangzhou, and Hebei, it forms a national customer coverage to ensure timely product delivery.

Finally, by the end of 18, 13,000 tons of new functional packaging material projects and 20,000 tons of ink technology relocation and upgrading projects with an annual output of 50,000 tons were gradually completed, and 8,000 tons of multifunctional film technology reconstruction projects were completed by 10%.

New production capacity has been put into operation successively, which effectively escorts the company’s continued growth in the later period.

Maintaining high dividend payout ratios and high allocation of high-quality targets: Since listing in 2004, the company has gradually realized net profit.

4.8 billion, a total of 10 cash dividends distributed to shareholders.

9.6 billion, with an average dividend payout ratio of 56.

twenty four%.

In 18, the company plans to distribute a cash dividend of 3 to every 10 shares for all shareholders.

50 yuan (including tax), maintaining a high dividend payout ratio of 77.

47%, corresponding to the current sustainable budget adjustment4.


In addition, the company’s recent repurchase of company shares demonstrates development confidence. By February 27, 19, it has gradually repurchased 32.75 million yuan. Subsequent repurchase of shares may be used preferentially for employee stock ownership or equity incentives.

Earnings forecast and investment grade: We expect to achieve revenue of 19 to 21 years respectively.



8.5 billion, an increase of 14.

2% / 15.

9% / 16.

1%; net profit attributable to mother 2.


74/3.2 billion, an increase of 10.

0% / 10.

5% / 10.


The current priority is 14.

81X / 13.

40X / 12.

17X, maintain “Buy” rating.

Risk warning: raw material prices fluctuate sharply, environmental protection expectations are not up to expectations, and downstream demand continues to be sluggish