Great Wall Motor (601633): Another mention of equity incentive plan offers low-absorption opportunities

Great Wall Motor (601633): Another mention of equity incentive plan offers low-absorption opportunities
The company’s recent situation Great Wall Motor issued an announcement announcing the 2020 equity incentive plan and implementation of assessment methods.  Quick response to comments, and then mention the incentive plan, brainstorming, and fully stimulate team enthusiasm and creativity.On September 6, 2019, the company issued the 2019 equity incentive plan, but it was not approved by the Hong Kong stockholders.The company responded quickly, and then mentioned the incentive plan, reflecting the strength and determination of the change in corporate management strategy.We believe that the incentive plan can fully synergize the interests of the company with the core management and technical team, and brainstorming can better leverage the team’s subjective initiative to help Great Wall achieve multi-faceted innovation on the basis of maintaining the advantages of efficient operations, in order to cope with the increasingly complex competition at home and abroadsurroundings.  The core content of the incentive plan remained the same, and the number of granted shares and related expenses decreased slightly.The incentive plan still includes two parts: incentive stock incentives and stock compensation incentives. Among them, the expansion of the share of stocks is still about 40%, the proportion of the first allocation is still 80%, and the total number of shares and equity granted is 1.7.8 billion shares, accounting for 1 of the current total share capital.95%, grade budget version of 1.8.5 billion shares decreased slightly.The total number of incentive objects this time is 1,966, including directors, senior management personnel, core technical personnel or core business personnel.According to company estimates, the total cost of the fair incentives.440,000 yuan (Air Force version 3.6.4 billion), amortized in 2020-2023.  The flexible and balanced evaluation method of volume and price continued, and the profit evaluation index increased.The company’s assessment of operating conditions in terms of sales volume and net profit remains unchanged. Sales volume and net profit remain 65% and 35% of the performance weight.For 2020-2022, the sales target will be 1.11 million, 1.21 million and 1.35 million, and the net profit target will be 4.7 billion, 5 billion and 5.5 billion US dollars.Innovative comprehensive growth of sales and profits, we believe that in the context of the industry’s entry into the knockout race, it is more reasonable and more conducive to car companies to continuously 杭州桑拿网 adjust sales and profits.Based on the current industry situation, the sales target has improved recently, but the profit target for 2020 has been raised, and the assessment criteria are still challenging.  It is estimated that Great Wall A / H is currently included corresponding to November 2020.6 times / 6.4x P / E.Affected by the overall market sentiment and industry sales performance, the Great Wall’s A / H range has changed, but we are still optimistic about the structural opportunities for the increase of the first-line autonomous market share, and the relaxation of pickup trucks into the city will increase the pickup truck sales of the companyGreat Wall A / H low-sucking opportunities.Maintain 2019/2020 profit forecast44.300 million, 65.500 million, with a profit forecast of 70 in 2021.900 million.Maintain A / H outperform industry rating, maintain target price of 11 yuan / 7 Hong Kong dollars (15 times / 9 times P / E in 2020), the early current price has 32%, 31% upside.  Risk The new model’s sales fell short of expectations; the industry’s clearance rate exceeded expectations.

Yonghui Supermarket (601933): 1H19 results in line with expected orderly expansion

Yonghui Supermarket (601933): 1H19 results in line with expected orderly expansion

A brief evaluation of 1H19 performance is in line with expectations: On August 28, Yonghui Supermarket reproduced its interim results and achieved revenue of 411 in the first half.

700 million, + 19.

It increased by 7% year-on-year, of which the same store increased by 3 in ten years.

1%.

Realize net profit attributable to mother 13.

700 million, +46.

It increased by 7% year-on-year, and the net profit margin increased by 0 compared with the same period last year.

6 o’clock to 3.

3%.

Revenue / profit for the first half of the year accounted for 49% / 61% of our expectations (vs.

Average revenue / profit ratio in the first half of 2017-18: 49% / 61%), and the performance generally met expectations.

Business analysis The growth of food supplies has accelerated, and gross profit margins have generally maintained an upward trend.

In terms of business, the fresh food business grew by 17 per year.

8% to 17.9 billion US dollars, food supplies business increased compared to the same period last year.

4% to 202 trillion, food supplies revenue growth faster than fresh.

In terms of gross profit margin, the gross profit margin of fresh food and food supplies decreased by 1 compared with the same period last year.

1 point / 1.

0 points, thereby increasing the overall gross profit margin to zero.

6 points.

However, from the historical average level, we believe that the Yunchuang sector’s gross profit was higher last year, which raised the base. The actual gross margin level of the Yunchao segment still maintained an upward trend compared with its historical range.

The home business continued to expand its store network.

In the first half of the year, the home business covered 518 stores across the country, an increase of 28 from the end of last year, of which Jingdong Dajia connected 407 supermarkets, an increase of 112.

From the perspective of income scale, the first-half home business achieved results.

30,000 yuan, the proportion of online sales further increased to 3.

4%, and the average monthly growth rate remains at 7.
.

1%, maintaining stable development overall.

Store development is good, and it is expected that store opening will accelerate in the 杭州夜网论坛 second half of the year.

In the first half of the year, 46 hypermarkets were added. In addition, Guangdong Baijia Yonghui’s 38 stores and 17 MINI stores were merged into the sixth theater.

As of the end of June, there were 791 hypermarket formats and 398 MINI formats.

It is worth noting that the MINI format achieved coverage in 50 cities in the first half of the year and contributed a total of 5 revenues.

500 million.

In addition, the company has 249 stores and combined with the merger guidelines of 150, we expect the store expansion to accelerate in the second half of the year and the scale will continue to expand in an orderly manner.

Investment recommendations We believe that the progress in the first half of the year is in line with expectations and maintain the company’s profit forecast for 2019-21, with revenues 夜来香体验网 of $ 844/986/1094 million, only +19.

7% / 16.

9% / 10.

9%; corresponding EPS are 0.

23/0.
29/0.
34 yuan.

We use the DCF estimation method in combination with PE estimation to take 9.

0% WACC (adjusted beta = 0.

9) and 1% sustainability expectations.

Maintain the company for the next 6-12 months11.

The target price of 5 yuan, equivalent to 49x / 40x / 34x PE in 19-21, is renamed as “Buy” rating.

Risk prompts 1) Macroeconomic downturn, consumer consumption expectations are falling; 2) Fresh food industry competition is intensifying; 3) Store expansion is too fast, operating quality is falling; 4) Mini store exploration is less than expected; 5) Same-store growth is less than expected;The restricted shares are lifted.

Haiyuan Composites (002529): Revenue recognition, asset impairment affects short-term performance, lightweight, and long-term growth potential is broad

Haiyuan Composites (002529): Revenue recognition, asset impairment affects short-term performance, lightweight, and long-term growth potential is broad

Short-term performance is under pressure due to the delay in revenue recognition and accrual of asset impairment: the company gradually released the 2018 performance bulletin and realized revenue in 20182.

41 trillion, down 11 a year.

6%; net profit attributable to mother may be 1.

6.4 billion.

It is mainly affected by the following two factors: (1) the lag in the progress of PPP public infrastructure projects under the financial deleveraging policy, which delays the recognition of revenue from lightweight construction orders, and affects revenue, while reducing the effect of scale on gross profit margin and period expenses(2) After comprehensive inspection and asset impairment test, the company plans to accrue 7737 for asset impairment in 2018.

550,000 yuan.

  The company’s announcement of the first quarter performance forecast shows that the first quarter of 2019 revenue is basically flat,深圳桑拿网 and the impact of the delay of PPP projects is gradually reduced; the company announced the first-half of 2018’s automotive lightweight business transition order.

05?
17.

58 ppm, the execution of this part of the order and revenue recognition will provide support for subsequent revenue growth.

  Join hands with Haigang Group to accelerate the landing of lightweight vehicles: With the arrival of new energy vehicle consumer cities and stricter vehicle emission policies, it is imperative for lightweight vehicles.

The company’s complete vehicle and battery plant customers are rich in resources. At present, it has supported Ningde Times, Yutong Bus, Dongfeng Liuqi and other customers in batches. At the same time, it has received multiple orders from Geely Commercial Vehicles, BMW China, Guoxuan Hi-Tech, and so on.

In October 四川耍耍网 2018, it announced that the wholly-owned subsidiary company Haiyuan New Material and Zhejiang Haigang Melt the “Strategic Cooperation Framework Agreement”. At present, Shanghai Volkswagen, Geely and other OEMs have settled in the new area; it is expected that the company will soon cooperate with OEMs in the new areaSpeed up development.

  The advantages of the entire industrial chain of composite materials are obvious, and the downstream application space is broad: the company is a leading manufacturer of fully automatic hydraulic presses, and has a wealth of technology accumulation in the field of fully automatic hydraulic forming.

Relying on the advantages of equipment, it also integrates domestic and foreign resources to integrate the complete industrial chain from composite materials equipment, technology, materials, mold development, product design to product production, and has a comprehensive leading advantage.

In addition to lightweight vehicles, the company has established long-term cooperation with China Communications, China Railway, Vanke, Greenland, etc., and is still actively exploring other large construction enterprises.

Infrastructure projects such as subways are expected to accelerate construction in the near future, and the company’s products in the public construction sector will promote rapid promotion.

  Investment suggestion: The company’s revenue growth rate is expected to be -11 in 2018-2020.

6%, 150.

2%, 23.

5%, the growth rate of net profit was -2440.

3%, 119.

8%, 50.

8%, corresponding EPS are -0.

63 yuan, 0.

13 yuan and 0.

19 yuan.

The company’s comprehensive composite material industry chain advantage, along with the growth and rapid development of new energy vehicles, has broad downstream application space.

Give “overweight-A” rating, 6-month target price of 11.

70 yuan.

  Risk warning: The recognition of construction board revenue is less than expected, and the price of raw materials rises.

Hunan Gold (002155): 3Q19 performance growth, down from the previous month affected by the decline in antimony tungsten prices

Hunan Gold (002155): 3Q19 performance growth, down from the previous month affected by the decline in antimony tungsten prices

3Q19 results were lower than expected 3Q19 results announced by the company: revenue of $ 11.3 billion, a year-on-year increase of 17%, attributed to the parent’s net profit1.

0 million, corresponding to a profit of 0.

08 yuan, a 43% decline each year, mainly due to the sharp fall in prices of antimony and tungsten.

In the third quarter of 19, the company’s revenue was 29.

500 million, a decrease of 4 every year.

1%, a decrease of 23% from the previous month, and the net profit of the mother is 0.

USD 1.7 billion, a year-on-year decrease of 58% (mainly due to a sharp drop in antimony tungsten prices) and a 53% decrease from the previous month (mainly due to a decrease in tungsten prices from a month-on-month basis and an increase in management expenses of 0% month-on-month.

3.1 billion).

The company’s third quarter earnings were lower than our 无锡桑拿网 expectations, mainly due to higher management expenses.

Comments: 1) 19Q3 gold prices rose, antimony tungsten prices fell.

In the third quarter of 19, the average domestic gold price was 337 yuan per gram, continuous + 26%, and the chain price was + 16%, but the average price of antimony ingots was continuous / chain ratio -27% / -8%, and the average tungsten concentrate price had been / chain ratio -26%./ -18%, the company’s comprehensive gross profit margin fell by 1.

0ppt, +2 from the previous quarter.

1ppt to 9.

0%.

The average domestic gold price / average price of antimony ingot / average price of tungsten concentrate rose by +12% /-18% /-19% in the first three quarters of 19, and the company’s overall gross profit rate fell by 2.

0ppt to 7.

0%.

2) Management expenses rose sequentially.

The company’杭州桑拿s management expenses in the third quarter of 19th quarter were + 27% or 0.

31 ppm to 1.

44 trillion, management expense ratio +0.

4ppt, 1-3Q19 increase in management expenses slightly increased by 2.

3%.

3) 3Q19 effective tax rate is 40.

8%, +14.

4ppt, +19 per year.

9ppt.

Development Trend Gold price is expected to remain high.

In the global economic growth momentum index, the lack of growth of mineral gold, the overall low interest rate environment overseas and the downtrend cycle of the US real interest rate, we believe that the price of gold will help maintain a high level.

Profit guidance for 2019: The company expects the initial return to parent net profit in 2019 to decrease by 40% -60% year-on-year, in the range of 1.

08-1.

6.2 billion.

Earnings forecasts and estimates take into account that the company’s third-quarter earnings were less than expected, and the gradual guidance for 2019 will gradually reduce our current forecast. We lower our 2019 net profit forecast to 21% to 1.

41 trillion, down 18% to 1 in 2020.

6.4 billion.

The current contradiction corresponds to 2019/2020 2.

0 times / 2.

0 times P / B.We maintain a neutral rating of 9 as we expect gold prices to remain high.

00 yuan target price, corresponding to 2.

1x P / B ratio in 2020, which is 8 compared with the previous one.

8% upside.

The prices of risky metals fell sharply.

Yiling Pharmaceutical (002603) Commentary Report: Revenue grows by 10 per year.

51% of core innovations in Chinese patent medicines continue to grow steadily

Yiling Pharmaceutical (002603) Commentary Report: Revenue grows by 10 per year.

51% of core innovations in Chinese patent medicines continue to grow steadily

Event: On August 26, 2019, the company released its semi-annual report for 2019: 2019H1 revenue 29.

8.4 billion, an increase of 10 in ten years.

51%; net profit attributable to mother is 4.

55 ppm, an increase of ten years.

50%; net profit after deduction is 4

28 ppm, a decrease of 0 per year.

77%; net operating cash flow is 4.

1.6 billion, an increase of 120 in ten years.

88%; achieve EPS of 0.

38 yuan / share, an annual increase of 2.

70%.

Comment: Academic marketing and market promotion are gradually deepening, and core innovation patents of proprietary Chinese medicines continue to grow steadily: H1 revenue in 201929.

8.4 billion (+10.

51%), net profit attributable to mother 4.

55 billion (+1.

5%), net of non-attributed net profit4.

2.8 billion (-0.

77%).

The company achieved steady growth in the first half of the year, mainly due to further breakthroughs and deepening of academic marketing and market promotion.

We believe that the company’s initial stable growth is mainly due to: 1) academic and marketing promotion of cardio-cerebrovascular drugs, urban medical and primary medical terminal coverage has steadily increased; 2) cold drugs, the company’s retailThe terminal will focus on 100,000 pharmacies across the country and implement full product coverage, so that Lianhua Qingwen Capsules / Particles will continue to grow steadily. In 2018, the market share of OTC cold medicines reached 1

82%; 3) In terms of other categories and health drinks, the structure of the big health industry is gradually improved. More than 300 kinds of health products have been developed and marketed. The gross profit and net profit margins of the big health industry have been slightly improved.Annual growth of 37%: 2019H1 company gross profit margin 67.

29%, an increase of 1 over the same period last year.

16pct; selling expense ratio 37.

16%, a decrease of 0 from the same period last year.

28 points; management expense ratio (including R & D expenses) 11.

06%, an increase of 2 over the same period last year.

58pct; 2019H1 company’s net margin slightly increased, from 4 in the same period last year.

46% rose to 4.

53%, up by 1 each year.

57pct 2019H1 research and development costs reached 200 million, an annual increase of 37%.

Second development of core patents of proprietary Chinese medicines, strengthening the implementation of the “three-step” strategy of chemical medicine: under the guidance of the theory of innovative collateral disease, the company has a high incidence of cardio-cerebral vascular disease, diabetes, respiratory, tumor, nerve, urinary and other drugs in the marketA large number of six major diseases, developed a variety of proprietary Chinese medicines with independent intellectual property rights, formed Tongxinluo Capsule, Shensong Yangxin Capsule, Quantum Qiangqiangxin Capsule, Lianhua Qingwen Capsule / Granule, JinlidaGranules are the core product pipeline. Currently, 9 products have entered the National Medical Insurance Directory and 5 products have entered the National Essential Medicine Directory.

In the field of Chinese medicine, the company continues to conduct re-evaluation and secondary development of listed Chinese medicine varieties after listing. At present, it has laid out five clinical evidence-based studies. At the same time, the company focuses on the internationalization of traditional Chinese medicine, and Lianhua Qingwen Capsule is in the US FDA Phase II clinical trial.The trial has achieved more than half of the enrollment.

In the field of chemical medicine, the company implements a three-step strategy of “transfer processing and cut-in, generic international and domestic registration of generic drugs, patent new drug R & D, production and sales”. Currently, it has obtained wholesale licenses from 50 states in the United States and gradually applied for 9 US ANDA varieties(5 of them have been approved).

In the field of big health, the company implements a combination of online and offline, and gradually improves the new model of integrated big health industry of “medicine, medicine, health and nutrition”.

Profit forecast and estimation: According to the growth of the company’s business operations, we forecast that the results for 2019-2021 will be 54.

7.7 billion, 62.48 billion, 71.

5.3 billion, it is estimated that the company’s EPS in 19-21 is 0.

57, 0.

66, 0.

76 yuan, currently 131.

7.3 billion market value, corresponding to 19-21 years 21.

76, 18.

98, 16.

46 times PE, continuous “strongly recommended” rating.

Risk reminder: The price 重庆耍耍网 increase of the API does not meet expectations; sales and R & D progress are not up to expectations; price reduction risks.

Guiguan Electric Power (600236): The incoming water has improved and the thermal power generation has increased significantly

Guiguan Electric Power (600236): The incoming water has improved and the thermal power generation has increased significantly

Event: The company released the third quarter report of 2019.

The company achieved operating income of 71 in the first three quarters.

69 ppm, an increase of 0 in ten years.

09%, net profit attributable to mother 19.

67 ppm, a decrease of 2 a year.

24%, in line with Shen Wanwanyuan’s expectations.

  Key points for investment: The water supply in the flood season improved slightly, and the hydropower generation in the third quarter was basically the same as the same period of the previous year.

In the spring of the first half of the year, the overall incoming water in the southern region was good but unevenly distributed. The incoming water in the Hongshui River Basin was dry, and the company’s hydroelectric power generation decreased by 7 in the first half of the year.

7%.

Water supply in Guangxi Province improved during the flood season, and the company achieved 106 hydropower generation in the third quarter.

400 million kWh, basically the same as the same period in 2018, driving the gradual decline in hydropower generation in the first three quarters to -5.

16%.

  The pattern of power supply and demand regional differentiation has intensified, and the utilization hours of Heshan Power Station have rebounded significantly.

Since 2019, the basic structure of power supply and demand is regional differentiation of supply and demand. Guangxi Province is the main destination for the transfer of the electrolytic aluminum industry in series. The growth rate of power consumption continues to lead the country, and the power consumption of the entire region increased in the first three quarters.

13%, ranking first in the country.

At the same time, due to the overall dryness of the incoming water, the utilization hours of thermal power in Guangxi Province increased significantly, gradually increasing by 536 hours in the first three quarters.

In the first three quarters, the company’s Heshan Power Plant achieved 24.

6.6 billion kWh, an increase of 70 in ten years.

66%.

Heshan Power Station’s net profit in the first half of the year is reduced by 1 every year.

At 19 ppm, the coal price index in the third quarter of Guangxi fell by 4.

9%, heshan power station is expected to gradually narrow in the future.

  Actively optimizing the clean energy power supply structure, and its stable performance is conducive to maintaining high dividends.

夜来香体验网The company’s top management continued to develop wind power business. The first phase of the Guangxi Binyang Mawang Phase I wind power project was put into operation at the end of March 2019. The Mawang Phase II wind power project (100MW) was approved in 5 months.

However, dragged down by poor wind conditions, the company achieved wind power in the first three quarters2.

5.1 billion kWh, a reduction of 11 per year.

31%.

With the gradual commissioning of under construction and installation, new energy is expected to continue to contribute to growth in the future.

The company significantly increased the dividend ratio. The dividend ratio for 2016-2018 was 30.

38%, 79.

68% and 63.

56%.

At present, the company’s overall performance is stable, and the high dividend payout ratio is expected to remain.

  In the third 杭州桑拿 quarter, Yangtze Power increased its shareholding in the company again, ranking fourth.

Yangtze Power continued to increase its shareholding in the short-term. It entered the top ten shareholders for the first time in the 2018 annual report, and increased its shareholding in the first half of 2019.

64% of shares, the shareholding ratio rose to fifth place.

In the third quarter, the company continued to increase its holdings of 0 again.

67% of the shares, the current gradual shareholding ratio has reached 3.88%, ranking the fourth largest shareholder.

The company’s value has been continuously recognized by the highest industrial capital.

  Profit forecast and estimation: Considering the situation of water supply and the improvement of thermal power performance, we maintain our forecast of net profit attributable to mothers for 2019-2021 is 24.

67, 25.

91 and 26.

62 ppm, the current sustainable corresponding PE is 14, 14 and 13 times, maintaining the “Buy” rating.

Qianhong Pharmaceutical (002550) Matters Comment: Innovative drug R & D ushers in major progress

Qianhong Pharmaceutical (002550) Matters Comment: Innovative drug R & D ushers in major progress

Matters: The company announced that the company and its subsidiary, Zhonghong Biological, a class of new drug ZHB202 injection, obtained the clinical trial notification from the State Drug Administration.

Ping An’s view: New drug research and development meets significant progress. A new class of drugs, ZHB202, has been approved for clinical use: ZHB202, the main ingredient of a new generation of polylactic acid asparaginase (PEG-ASP), can decompose asparagine in the blood into aspartic acid andammonia.

However, tumor cells such as acute lymphoblastic leukemia (ALL), NK / T-cell lymphoma, have low expression of asparagine synthetase, cannot endogenously synthesize asparagine, and will be inhibited due to lack of asparagine, and then wither.Perish.

ZHB202 is indicated for acute lymphoblastic leukemia (ALL), NK / T-cell lymphoma.

The company has ZHB202 independent intellectual property rights, and its core technology has applied for PCT patents and Chinese invention patents.

At present, the Phase I clinical plan has been jointly developed with the clinical trial partner of the First Affiliated Hospital of Suzhou University.

PEG-ASP is the first-line drug for ALL, NK / T lymphoma, and ZHB202 is expected to become the best of its kind: natural asparaginase (L-ASP) is the cornerstone of multiple treatment options for ALL and NK / T-cell lymphoma, and has been selected”Guidelines for the Diagnosis and Treatment of Acute Lymphoblastic Leukemia in Adults in China”, “Advice for the Diagnosis and Treatment of Acute Lymphoblastic Leukemia in Children”, and the “Guidelines for International Gold Standards for Cancer 2013”.

However, severe allergic reactions, preventive, continuous factors, etc. have significant clinical applications of L-ASP.

Since 2013, the NCCN guidelines recommend replacing L-ASP with PEG-ASP as a first-line treatment for NK / T-cell lymphoma combined with chemotherapy.

The first-generation PEG-ASPs currently on the market include Enzon’s Oncaspar and Hengrui Pharmaceutical’s Aiyang; in December 2018, Servier’s second-generation PEG-ASP drug, ASPARLAS, was approved by the FDA.

ZHB202, as the third-generation PEG-ASP drug, is expected to become the best in its class.

At the same time, the company’s domestic and even the world’s largest asparaginase 北京spa会所 raw material production base can effectively guarantee the progress of the project.

The company has a rich reserve of innovative drugs, and it will start to harvest in 2019. Following the approval of the first class of new drug QHRD107 in July 2018, ZHB202 received clinical approval, showing the company’s innovative dark horse.

At present, the company has established a large-molecule drug research and development platform mainly based on Zhonghong Biology and a small-molecule drug research and development platform mainly based on Innocent.

In addition to the ZHB202 project that Zhonghong Biological has been approved for clinical trials, the ZHB206 project has also completed all non-clinical studies. It is located in the preclinical communication stage with the National Drug Review Center. Major research has been 成都桑拿网 advanced in an orderly manner. It is expected that clinical trial applications will be made in 2019.

Innocent LS010 is also in the preclinical stage and is expected to be announced recently.

Profit forecast and investment rating: The company’s overall performance has maintained steady growth, which can support the smooth progress of new drug research and development.

However, considering the provision of bad debts for financial management in the first three quarters of 2019 is 84.57 million, the company’s EPS forecast for 2019-2021 is adjusted to zero.

22 yuan, 0.

26 yuan and 0.

32 yuan (the original forecast was 0.

24 yuan, 0.

28 yuan and 0.

36 yuan), the current sustainable corresponding company is only 22 times PE in 2019, maintaining the “recommended” level.

Risk reminder: 1) Research risk: New drug research and development is a high-risk and high-reward behavior, which requires pharmacology, toxicology, preclinical, clinical trials and other steps. There is a possibility of failure; 2) Marketing risk: the companyThe preparation products are mainly sold in hospitals, and they face relatively fierce market competition, which may affect sales growth due to intensified market competition. 3) Price fluctuation risk of heparin APIs: The prices of APIs are volatile, although the proportion of business has decreased.However, if the price of heparin raw materials drops, it will still affect the company’s revenue and profit volume.

Fire Communication (600498): Interim report is lower than expected

Fire Communication (600498): Interim report is lower than expected

Event On the evening of August 28, 2019, the company released its 2019 Interim Report.

In the first half of 2019, the company achieved revenue of 119.

85 ppm, a ten-year increase of 7.

07%, achieving net profit attributable to mother 4.

16 trillion, sixth grade 8.

67%, which is the first intermediate report replacement for the first time since 2015.

Brief Comment 1. The company’s 2019 Interim Report was dragged down by gross profit margin, which was generally lower than expected.

In the first half of 2019, the company faced the unfavorable situation of “domestic investment scope and changing international environment”, and some business coverage, including fiber optic cables.

However, as the company strengthened its ICT layout and made breakthroughs in its server and security businesses, it recorded a revenue of 7.

07% growth.云尚丽体验网

However, due to the decline in the volume and price of fiber optic cables, and the operator’s priority in building 5G networks based on NSA in the first half of the year, the new demand for transmission equipment was general, and the expansion of existing equipment was suspended.

Against this background, the company’s consolidated gross profit margin declined.

73pct, about 20.

55%, the second lowest since the company went public.

Although the company strengthened expense control, sales expenses, management expenses and financial expenses decreased by 11 respectively.

12%, 11.

66%, 70.

69%, but under the circumstances that international expectations are complex and changeable, the company has increased R & D investment and R & D costs reached 11.

96 ppm, an increase of 1 per year.

4 trillion, an increase of 13.

30%.

As a result, the company’s net profit attributable to mothers decreased by 8%.

67%, which is the first intermediate report replacement for the first time since 2015.

2. The performance of subsidiaries such as Beacon Star was outstanding.

Fenghuo Xingkong, a subsidiary of information security business, maintained rapid growth.

In the first half of 2019, Beacon Star achieved net profit1.

92 ppm, a 250-year increase.

56%, has completed 2018 net profit3.

02 ppm of 63.

58%.

The performance of the beacon integration of the subsidiary was also better, with a net profit of 81.88 million yuan, an increase of 123 a year.

59%.

The subsidiary, Fiberhome Technology Services, achieved a net profit of zero.

At 1.8 billion, Beacon International achieved a net profit of 482.

750,000 yuan, respectively slightly extended 66.

33%, 83.

30%.

We expect it to be related to project order confirmation and changes in the international environment, and there is room for improvement in the future. 3. Transmission network demand is expected to improve initially in the second half of the year, and the company’s performance is expected to improve sequentially.

China’s 5G construction is still accelerating, and large-scale commercial use will be realized by 2020.

Chinese operators are about to switch from NSA to SA, which will lead to better demand for transmission networks.

Because NSA is based on 4G networks to build 5G, the demand for transmission networks is relatively limited. In order to meet the requirements of 5G to accelerate commercialization this year, operators can only choose NSA when the SA core network equipment is immature.

Considering that the domestic 5G target network architecture merges with SA, and the chairman of China Mobile said in June that the Ministry of Industry and Information Technology will not issue a single-mode NSA 5G mobile phone connection license in early 2019, which also means that ChinaThe operator is about to switch to SA.

In order to meet the needs of 5G SA network construction, the operator’s transmission network demand is expected to gradually pick up, and the company’s performance is expected to improve as a result.

4. Profit forecast and rating.

We believe that the company, as a major supplier in the optical communications industry, has a high degree of certainty in the benefits of 5G and has a long-term investment value.

Considering that the initial 5G construction of domestic operators in 2019 is mainly NSA, it may be gradually switched to SA in the second half of the year, which will affect the demand for 5G bearer network equipment.

In addition, the pressure on the volume and price of fiber optic cables in the Chinese market will also put some pressure on the company’s performance, but these are already in the market’s expectations.

Consolidate the company’s equity incentive requirements to give a margin of safety to performance.

We expect the company’s net profit attributable to its mothers to be 9 in 2019-2020.

9.6 billion, 12.

41 trillion, EPS is 0.

85 yuan, 1.

06 yuan, corresponding to PE is 33 times, 27 times, maintaining the “overweight” level.

5. Risk warning: the company’s 5G orders are less than expected; market competition has intensified and prices have fallen rapidly; pressure on fiber optic cables has been under pressure.

Meijin Energy (000723) Tracking Report: Traditional coal-coke leads the hydrogen industry

Meijin Energy (000723) Tracking Report: Traditional “coal-coke” leads the hydrogen industry
Core Viewpoint As a private coke leader in Shanxi, the company is committed to the development of the “coal-coke-gas-chemical” entire industrial chain, forming a circular economy advantage, and increasing the profitability of the coking sector.The company’s holding company, Feichi Automobile, has the first-mover advantage in the field of hydrogen buses, and the joint-stock companies also have breakthroughs in membrane electrode technology.We are optimistic about the growth prospects of the company’s hydrogen-related sector, covering for the first time.Give “overweight” rating.  Shanxi private enterprise leader, committed to the “coal-coke-gas-chemical” integrated development.The company is mainly engaged in the production and operation of coke, coal, natural gas and coal bed gas, hydrogen fuel cell vehicles, etc. It has a relatively complete industrial chain of “coal-coke-gas-chemical”.The company has a total capacity of 540 millimeters of coking coal and 660 millimeters of coke. During the coking process, the company’s coke oven gas reached more than 50%, so it has unique advantages in hydrogen production and the development of hydrogenation stations.In addition, the company’s project of using coke oven gas to produce LNG and co-synthesize ammonia and urea has been completed, and the amount of natural gas can reach 1.3.4 billion cubic meters / year, synthetic ammonia 20 mg / year, urea 30 mg / year.  Coal and coke integration stabilized the profitability of traditional businesses.Considering that the company’s coking plant is close to full production, environmental protection equipment meets standards and assumes local municipal gas supply tasks, the environmental protection production limit policy has little impact. It is expected that the company’s coke production will be stable in the next 2 years.In 2019, the company plans to start construction of the 400 / year coking project, and the production capacity will continue to increase and expand in 北京桑拿洗浴保健 the future.The company’s self-produced coking coal can produce 60% of the coke used, thereby supporting the profitability of the coke sector.We expect the company’s coke reduction to decrease by 3% in 2019, the net profit per ton of coke will be reduced to about 300 yuan, and the coke business will still contribute a net profit of 1.7 billion yuan.In addition, after the company’s coke oven gas LNG project is put into production in 2019, it is expected to contribute about 200 million profit increments.  Actively deploying the hydrogen energy industry chain, there is huge room for future development.Hongji Chuangneng, a company in which the company has a stake, will establish the first domestically-produced, high-performance membrane electrode large-scale domestic production line with a planned production capacity of 100,000 square 淡水桑拿网 meters per year. After large-scale production, there will be about 60% reduction in the cost of reactors.Hongji Chuangneng is also expected to gradually acquire Ballard’s domestic market share and fully enjoy the growth in domestic demand for hydrogen fuel cells.In addition, in 2018, Flying Spur Motors (holding 51.2%) hydrogen fuel vehicle market share reached 11.85%, considering the “ten thousand cities in ten cities” policy and the gradual advancement of the planning and construction of hydrogen refueling stations, the company’s hydrogen fuel vehicle sales in 2019 are expected to reach more than 1,000.  Risk factors: Macroeconomic forecasts affect coke demand; the advancement of hydrogen fuel cell vehicle policy is less than expected; the project progress is less than expected.  Investment advice: do we predict the company 2019?EPS is 0 in 2021.47/0.57/0.62 yuan, the current price of 8.39 yuan, corresponding to 2019?2021 P / E18 / 15 / 13x.We use the segment assessment method to estimate the company’s long-term market value of about 37.5 billion yuan, with a corresponding target price of 9.20 yuan, corresponding to the 2019 PE19x, for the first time coverage, giving the company an “overweight” rating.

Zhaoyan New Drug (603127) Tracking in the First Quarterly Report: The growth rate after deduction is slightly lower, and the long-term development prospects are not hindered

Zhaoyan New Drug (603127) Tracking in the First Quarterly Report: The growth rate after deduction is slightly lower, and the long-term development prospects are not hindered

1.

Event: The company released the 2019 first quarter report.

Revenue for the first quarter of 2019 was 7,441.

900,000 yuan, an increase of 44 in ten years.

13%; net profit attributable to mother is 1203.

960,000 yuan, an increase of 37 in ten years.

27%; net profit deducted from non-return to mother 456.

780,000 yuan, a decrease of 18 a year.

13%; EPS 0 achieved.

10 yuan.

In terms of expenses and assets, sales expenses were 216.

150,000 yuan, an increase of 87 in ten years.

47%, mainly due to the increase in labor costs and office expenses; administrative expenses 1950.

680,000 yuan, an increase of 38 in ten years.

54%; finance costs 8.

360,000 yuan, an increase of 136 in ten years.

75%, mainly due to the impact of foreign exchange loss gains and losses; R & D expenses 738.

310,000 yuan, an increase of 28 in ten years.

76%; investment income 615.

560,000 yuan, an annual increase of 428.

51%.

Pre-sale funds 3.

7.4 billion, an increase of 10 from the beginning of the period.

32%; long-term deferred expenses end 478.

300,000 yuan, an increase of 87 from the beginning of the period.

45%, mainly due to the sale of renovation and renovation investment stalls; other non-current assets at the end of 3620.

300,000 yuan, an increase of 52 over the beginning of the period.

77%, mainly due to the increase in prepaid equipment engineering funds.

Net operating cash flow of 1624.

640,000 yuan, an increase of 132 in ten years.

02%.

2.

Our Analysis and Judgment (I) The growth rate of non-deduction is slightly higher than expected. Revenue with well-controlled expenses during the period maintained steady growth. Due to the increase in additional staff costs and the replacement period of new business, the growth rate of net profit after deduction is slightly lowerIn the expected 2019Q1 company revenue is 7441.

900,000 yuan (+44.

13%), net profit attributable to mother is 1203.

960,000 yuan (+37.

27%), deducting non-attributed net profit 456.

780,000 yuan (-18.13%).

The growth rate of net profit attributable to mothers is much higher than the growth rate of net profit attributable to non-mothers, which is mainly due to the report that investment income has been increasing significantly in 2019Q1, the company’s investment income was 615.

56 million, an annual increase of 428.

51%.

The growth rate of net profit after deducting non-return to motherhood was slightly higher than expected. We believe that (1) the expenditure of personnel reserved for the expansion of new capacity.

The company added 145 new employees in 2018 and 50 new employees in 2019Q1, mainly to prepare for subsequent capacity expansion. It is estimated that the cost of new employees is about 3 million yuan.

(2) Replenishment of new business (pharmacovigilance, clinical business, Wuzhou Monkey 南京夜网 Farm, etc.) has generated corresponding returns.

Pharmacovigilance, clinical phase I, monkey farm construction and other businesses are still in the investment stage and have not generated corresponding revenue, which is expected to exceed about 2 million.

(3) Asset impairment losses.

In 2019Q1, the company made provision for bad debts, and the asset impairment loss was 246.

540,000 yuan, an annual increase of 311.

45% also has a partial impact on profits.

In terms of business segments, we estimate that the security evaluation business revenue in Q1 2019 will be 50.23 million, an annual growth of 23.

63%; revenue from pharmacokinetic research business was 15.1 million, an annual increase of 77.

23%; 5.63 million in pharmacodynamic research business income, an annual increase of 55.

52%.

During the period, expenses were well controlled and gross profit margin decreased.

Expense rate during the 2019Q1 was 39.

15% (-1.

02pp), sales expense ratio 2.

90% (+0.

67pp), the management expense rate is 26.

21% (-1.

06pp), financial expense ratio is 0.

11% (+0.

55pp).

In terms of segmentation, sales expenses were 216.

150,000 yuan, an increase of 87 in ten years.

47%, mainly due to the increase in labor costs and office expenses; administrative expenses 1950.

680,000 yuan, an increase of 38 in ten years.

54%; finance costs 8.

360,000 yuan, an increase of 136 in ten years.

75%, mainly due to the impact of foreign exchange loss gains and losses; R & D expenses 738.

310,000 yuan, an increase of 28 in ten years.

76%.

In terms of gross profit margin, the gross profit margin in 2019Q1 was 52.

66%, a decrease of 2 from the same period last year.

77pp.

We believe that it is mainly due to the increase in labor costs.

Net operating cash flow of 1624.640,000 yuan, an increase of 132 in ten years.

02%, the absolute value and growth rate are higher than the profit side, and the operating quality is excellent.

(II) Capacity expansion + personnel expansion + increase in hand orders to ensure continuous growth As a domestic pre-clinical R & D export leader, the company continues to expand production capacity, continuously strengthen staff building, expand scale in hand orders, and ensure continuous growth in performance.

In terms of production capacity, the company is in Taicang.

The 08,000-square-meter animal house has now been included in the GLP business qualification. Currently, it is beginning to conduct non-GLP business trial operations. It is expected that it will gradually take over GLP business orders no later than June.

In addition, the company plans to invest in Chongqing Liangjiang New District.

8.7 billion Zhaoyan (Chongqing) New Drug Evaluation Center was constructed with a planned scale of 127 acres and a planned building area of 60,000 square meters. Construction is expected to begin in October and be completed within two years.

In our opinion, the establishment of Chongqing Zhaoyan is conducive to expanding the company’s influence in the southwest, thereby further enhancing its competitiveness.

In terms of personnel team, the company continued to expand its workforce, adding 50 new employees in the first quarter of 2019, and the total number of employees reported was 867.

The company optimizes the organizational structure, improves management efficiency, improves the budget system, and expands fair incentives. It actively explores foreign talent markets and builds an international and professional talent team.

In addition, the company organizes internal training and assessment of the system to improve the professional technical ability and quality awareness of employees.

In terms of orders, the company has too many orders in hand and its subsequent performance is guaranteed.

New chronic orders in the first quarter of 2019.

500 million, an increase of 13 compared with the same period last year.

64%.

As of the end of the reporting period, the company had about 9 billion orders in hand, which was an increase of about 10% compared with the same period last year. The existing orders provided effective guarantee for the company’s future business performance.

(3) Extension of the industrial chain, early clinical + pharmacovigilance business steadily promoted The company actively expanded its business areas, and early clinical and pharmacovigilance business steadily advanced.

In terms of early clinical business, there are currently three bases in Taicang, Tonghua and Hainan Cancer Hospital, which can carry out clinical projects and grasp the quality of the projects.

At the same time, Beijing has a clinical sample analysis department, and Taicang has recruited returnee experts. It is currently in the stage of establishing a clinical sample analysis team.

It is expected that the three hospital bases and the Taicang clinical sample analysis center will be completed and used by the end of the year.

As for the pharmacovigilance business, Zhao Yanming has established pharmacovigilance cooperation relationships with enterprises of different sizes, including central enterprises, joint ventures, R & D enterprises, and listed companies.

The company’s clinical phase I and pharmacovigilance business are steadily advancing. It is currently in the early expansion stage and has a small income volume. It is expected to be in a break-even state for a long time.

3.

Investment suggestion The company’s non-zero parent net profit growth rate in the first quarter of 2019 is slightly larger than expected, but considering that the first quarter is the off-season business, the low profit base is affected by the increase in costs, and the company’s fundamentals have not changed.Long-term sustainable growth.

The company is an absolute leader in the field of pre-clinical safety evaluation of domestic pharmaceutical outsourcing, and is the only professional pre-clinical CRO company in China with two GLP institutions.

To improve, the company continued to expand production capacity, continuously strengthened the construction of its personnel team, and had too many orders in hand to ensure sustainable growth in performance.

At the same time, the company actively expands its business areas and enhances its overall competitiveness. The early clinical and pharmacovigilance businesses are expected to bring new performance increases in the future.

In addition, the pharmaceutical outsourcing industry is highly prosperous and the market demand is constantly expanding.

We are optimistic that the company will maintain a rapid growth as a leader in preclinical safety assessment expansion. It is estimated that the net profit attributable to mothers will be 1 in 2019-2021.

55/2.

17/2.

93 trillion, corresponding to 0 EPS.

96/1.

35/1.

82 yuan, corresponding to PE is 48/34/25 times.

Maintain the “Recommended” level.

4.

Risks prompt increased competition in the industry; risk of loss of core technical staff; capacity expansion is less than expected.