Weixing New Material (002372) 2019 Third Quarterly Report Review: Short-term pressure on retail business optimistic about long-term growth potential
The company’s Q3 single-quarter revenue and net profit were affected by the macro environment of the retail business and the 杭州桑拿 improvement of the municipal business strategy, but the overall gross margin and cash flow situation remained stable.
Based on this, we maintain the net profit attributable to mothers for 2019-2021 to 11.
2.1 billion, 12.
9.9 billion, 15.
06 million yuan, maintain “Buy” rating.
Performance summary.
The company’s operating income for the first three quarters of 201931.
200 million, net profit attributable to mother 6.
92 ppm, an increase of 5 each year.
15%, 5.
8%; net profit after deduction 6
52 ppm, a ten-year increase4.
46%; third quarter single-quarter operating income10.
15 ‰, an average of 6 in ten years.
08%, net profit of non-attributed mothers2.
36 ppm, 10-year average of 10.
38%.
The decline in Q3 single quarter results was due to the weakening of the retail market and the adjustment of the engineering business.
The company’s Q3 single-quarter operating income decreased by at least 6.
08%, mainly due to two reasons: 1) the retail market is affected by the macro environment, especially in East China, where the company ‘s market share is high, the continued downturn in real estate completion data and the impact of hardcover housing have dragged down the company ‘s retail business growth;) The company anticipated the risk of receivables in the macro environment and actively reduced the scale of PE pipe municipal services.
The adjustment has affected the growth rate of performance, thereby ensuring the safety of overall cash flow.
The gross profit margin decreased slightly, and the expense ratio decreased during the period.
The company’s gross profit margin in the first three quarters was 46.
8%, a decline of 0 per year.
5pct; in a single quarter, Q3 gross margin was 47.
71%, down by 1 every year.
77pcts, down 0 from the previous month.
22 points.
The change in gross profit margin should be related to fluctuations in the price of raw materials, and the overall stability remains high.
The expense ratio during the first three quarters was 21.
12%, a decline of 0 per year.
14pct, down from the chain.
76pct, showing that the company’s overall cost control is very effective.
Abundant cash flow and high and stable operating quality.
At the end of the reporting period, the company’s net operating cash flow was 5.
$ 5.1 billion, an increase of 14% per year.
Cash and cash equivalents at the end of the period13.
3.3 billion, an increase of 3 from the beginning of the period.3%, mainly due to the substantial increase in net investment cash flow.
US $ 9.7 billion, which is the report of the company’s gradual restoration of Xinjiang Dongpeng Heli Equity Investment Partnership (Limited Partnership) ‘s partial investment and the impact of reduced wealth management products.
The overall operation quality is stable.
Risk factors.
Potential fluctuation risks of real estate investment, risks of raw material price changes, and macroeconomic fluctuation risks.
Profit forecast and investment advice.
The company’s Q3 single-quarter performance did not improve, mainly due to the adjustment of the macro environment to the retail business and municipal business strategy.
However, the overall gross profit margin and net interest rate remained at a relatively high level, 杭州桑拿网 and the cash flow situation was also very stable.
All have improved.
There is still room for growth in the PPR business in the Northeast and the West. The PVC and waterproof business is expected to continue to maintain high growth.
Based on this, we maintain our forecast of net profit attributable to mothers for 2019-2021 to 11.
2.1 billion, 12.
9.9 billion, 15.
0.6 million yuan, corresponding to EPS forecast of 0.
86/0.
99/1.
15 yuan.
Maintain target price of 18.
43 yuan, corresponding to 18 times PE in 2020, maintain “Buy” rating.
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