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Qianfang Technology (002373)： Performance in line with expectations

Qianfang Technology (002373): Performance in line with expectations

The interim report results were in line with expectations, maintaining the “Buy” rating on the evening of July 19, the company announced that in the first half of 2019, it achieved operating income of 35.

86 ppm, an increase of 24 in ten years.

74%, achieving net profit3.

740,000 yuan, an increase of 30 in ten years.

20%.

Revenue in the second quarter of the year was 19.

41 ppm, an increase of 23 in ten years.

16%, achieving a net profit of 2.

121 ppm, an increase of 13 in ten years.

92%.

The company’s performance is in line with expectations, and Ali’s shareholding is expected to bring synergies. It is expected that EPS for 2019-2021 will be 0.

64, 0.

82, 1.

04 yuan, maintain “Buy” rating.

　　Ali’s shareholding opens a new chapter in the development of the company. In May, the company signed a share transfer agreement with Ali Networks. After the transfer, Ali held 15% of the company’s shares and became the second shareholder of the company.

The company reached a strategic cooperation with Alibaba Cloud to jointly promote the implementation of solutions in the field of intelligent transportation and intelligent driving edge computing.

The company’s smart transportation business and Alibaba Cloud’s “urban brain” have excellent consistency in scenarios and technical paths.

Intelligent driving requires the joint support of cloud-edge-end computing capabilities. The company’s advantage lies on the edge side, and Ali’s advantage lies in the cloud.

The company and Ali Qiangqiang jointly promoted the promotion of smart transportation and accelerated the implementation of smart driving solutions.

　　Full coverage of ETC products, increased capital, and the approval of the ETC service market after the ETC service market ‘s annual State Council government work report 武汉夜生活网 stated that “the national highway provincial toll stations will be basically cancelled within two years”, and the ETC industry needs to be released.

ETC companies have launched a full range of products such as OBU, RSU, CPC cards, and their business scope has covered Anhui, Zhejiang, Gansu, Shandong, Shanxi, Hunan, Hubei, Heilongjiang, Sichuan, Xinjiang, Tianjin, Tianjin, Jilin and other nearly 20 provinces.

On July 10, the company plans to participate in the capital increase of Shandong Expressway Xinlian Payment Co., Ltd.

Seco Xinlian is an ETC card issuer and operating entity of Shandong Expressway. It develops ETC + logistics, ETC + fueling, ETC + finance and other ETC after-car service businesses with ETC as the entry point.

The joint venture between the company and Secoin is expected to open up business imagination in the ETC service field.

　　Smart security maintains a leading position, and Yushi’s AI algorithm breaks 重庆耍耍网 the world record for MOT. Yushi Technology is a leader in the security industry.

According to the “2019 Global Video Surveillance Information Service Report” released by IHS Markit, Yushi Technology ranked fourth in the global video surveillance equipment market in 2018, with a market share of 3.

2%.

In March 2019, Yushi’s computer vision and deep learning algorithms refreshed their best results in the Multi-Object Tracking (MOT) Challenge Global Competition.

In MOT’s latest data set MOT17Det, Yushi increased the AP of traffic scene object detection to 0.

89X, presenting the highest recognition accuracy rate and the lowest false positive rate. It broke the record set by famous AI algorithm companies such as Tencent Youtu and Shangtang Technology.

Yushi Technology’s computer vision algorithm capabilities have made progress, which is expected to further enhance product competitiveness.

　　The results of cooperation with Ali are expected to be shown in the second half of the year. The companies that maintain the “Buy” rating and Ali have good synergies in areas such as intelligent transportation and edge computing. The collaborative results in the second half are expected to show.

Maintain profit forecast, and expect net profit for 2019-2021 to be 9 respectively.

57,12.

24, 15.

48 ppm, corresponding EPS is 0.

64, 0.

82, 1.04 yuan, corresponding to PE is 25, 20, 15 times.

Comparable companies have an average price-earnings ratio of 29 times in 2019. Considering the company’s layout in the field of ETC and intelligent driving to broaden business boundaries and enhance competitiveness, the company is given a target PE of 30-35 times in 2019, corresponding to a target price of 19.

2-22.

4 yuan, maintain “Buy” rating.

　　Risk warning: Government investment is less than expected, security overseas business development is less than expected, and competition in the industry is exacerbated.

First Capital (600008) Company In-depth Report： Spring Turnover Results

First Capital (600008) Company In-depth Report: Spring Turnover Results
Company profile: Water and solid waste dual-main business, a state-owned environmental protection listed company affiliated to Beijing Capital Group.The company is a state-controlled environmental protection enterprise affiliated to Beijing Capital Group. Beijing State-owned Assets Supervision and Administration Commission is the actual controller of the company. As of the end of September 2019, Capital Group held 46% of the shares.In the company’s revenue structure in 2018, wastewater treatment, tap water production and sales, environmental protection construction, garbage disposal revenue, highway tolls, and heating revenue accounted for 16%, 13%, 40%, 28%, 3%, and 0, respectively.1%.Corresponding gross profit margins are 31%, 24%, 28%, 32%, 62% and 6%. Industry analysis: The water industry has increased steadily, and the proportion of waste incineration has increased rapidly. Tap water supply industry: Urban water penetration rate was 98 in 18 years.36%, the increase in urbanization rate has promoted the industry’s steady increase.China’s highest total water consumption has remained stable overall, with a CAGR of -0 in the past five years.3%.The initial rural water penetration rate and urbanization rate continued to increase, and the urban and county water use rate reached 98 in 18 years.36% and 93.80%, there is still room for improvement in the township and village water supply rate. As the urbanization rate and water penetration rate continue to increase, domestic water consumption has also steadily increased, with a CAGR of 2 in the past 5 years.91%.It is expected that there will be 2 every year.The 8.6 billion urban population has room to rise and will increase urban water consumption by 51.4 billion cubic meters per year.The amount of urban water supply and the comprehensive production capacity of water supply have been increasing steadily, and the CAGR has reached 3 in the past 5 years.0% and 2.2%.Urban water prices are adjusted regularly, with the average water price of 36 urban residents reaching 2 in 19 years.28 yuan / ton, with a compound growth rate of 2 in the past 10 years.4%. Sewage treatment industry: CAGR 6 for urban sewage treatment in 12-17 years.06%, the processing rate still has room for improvement.The 13th Five-Year Plan requires that by the end of 2020, the urban sewage treatment rate will reach 95% and the county sewage treatment rate will reach 85%.In 2017, the sewage treatment rate in cities and counties reached 94.54%, 91.16%.The increase in sewage demand has led to the rapid development of the sewage treatment industry, and the CAGR of the sewage treatment volume and output reached 6 to 12 to 17 years.06% and 6.25%.The length of urban sewage pipelines and the number of sewage plants have increased rapidly, and CAGR reached 7 in 12 years.5% and 10%.The current 36 urban sewage treatment fees have been increasing steadily over the past 15 years, and the latest treatment fees in 19 reached zero.98 yuan / ton, a compound growth rate of 3 over the past 10 years.0%.Guided by policies such as sponge cities and underground pipe corridors, the sewage treatment industry will shift from separate sewage treatment to comprehensive water environment treatment. Solid waste treatment industry: The proportion of waste incineration has increased rapidly.At present, the solid waste disposal methods mainly include sanitary landfill, direct incineration, incineration power generation, and comprehensive treatment of multiple methods.The volume of domestic garbage 四川耍耍网 removal in China has steadily increased, with a CAGR of 5 in 12-18.75%; 18 years of harmless treatment rate reached 98.96%.In 17 years, sanitary landfills and incineration accounted for 57% and 40% of the total volume of harmless treatment of urban life nationwide.Waste incineration accounted for 24 from 5 years ago.7% rose to 40.2%.The “Thirteenth Five-Year Plan” National Urban Harmless Waste Urbanization Design Plan requires that the waste incineration capacity accounts for more than 50%, and the eastern region reaches more than 60%. Water business has developed rapidly, with revenue growth of 21 in the first half of the year.49%, sufficient orders in hand.The company’s water product line business mainly includes tap water supply, sewage treatment, and water construction. The water service business has a CAGR of 20% in 2014 and the gross profit margin is stable during the period.The company mainly expands its power supply business by establishing water supply companies with local enterprises and acquiring equity in local water supply enterprises.1) The revenue of water supply business maintained rapid growth: the company’s water supply business income in the first half of 199.20,000 yuan, an annual increase of 25.1%, the gross profit margin of the water supply business for 18 years was 24.1%.In the first half of 19, Chengdu Jinqiang, Tianjin Ninghe, Hebei Huaguan and other projects were put into production and the water price of some existing projects rose, so the company also provided a rapid increase in operating income.The company’s water business revenue has steadily increased since 14 years, and the CAGR of revenue from 14 to 18 has reached 20.0%.The company’s water business gross profit margin is relatively stable, with an average gross profit margin of 24 in the past five years.9%.2) The company’s 18-year tap water supply capacity reached 1402.On the 9th day / day, the production-sales margin is 15.1%, capacity utilization rate is 61.9%.The company’s tap water supply capacity has grown steadily in the past three years, with a compound growth rate of 14 in the past three years.1%.The gradual reduction of the production-sales gap will help the company improve efficiency.The company’s maximum production capacity has not been high, because the number of permanent residents in the cities where some factories are located has not yet reached the planned target, resulting in insufficient demand for elongation.In the future, with increasing population growth and increasing urbanization rate, the urban population will continue to increase, and the company’s tap water supply capacity will be promoted.3) Water prices are gradually raised, and bargaining power is supplemented.The company’s tap water price has different pricing in various regions. In 18 years, the average water price in North China, East China, Central South, and Southwest China was 2 respectively.17 yuan / cubic meter, 2.06 yuan / cubic meter, 2.08 yuan / cubic meter, 1.81 yuan cubic meters.The average water prices of the company’s domestic water, non-residential water and other customers are 1.89 yuan / cubic meter, 2.73 yuan / cubic meter and 1.63 yuan / cubic meter.The company’s bargaining power is expected to increase water prices for four water supply projects in 2018. The CAGR of wastewater treatment revenue in the past 4 years reached 23.8%, gross profit margin and unit processing price are above average.1) The company’s sewage treatment business income in the first half of 1912.0 million yuan, an increase of 34 in ten years.8%, gross profit margin of sewage treatment business in 2018 is 31.2%.In the first half of the year, the company’s Yuyao Wastewater Project, Hefei Shilili River Wastewater Project was put into operation, and the water price of some existing projects rose, which caused the company’s wastewater treatment business revenue to increase rapidly.The company’s water business revenue has steadily increased since 15 years, and its compound growth rate from 15 to 18 years has reached 23.8%.The gross profit margin of the company’s wastewater treatment business has been declining, with an average gross profit margin of 38 in the past five years.1% with a standard deviation of 5.4%.2) The company’s 18-year sewage treatment capacity reached 1226.The daily output of 0 days, the capacity utilization rate is 85%.The company’s wastewater treatment capacity has grown steadily in the past three years, with a compound growth rate of 16 in the past three years.1%.The maximum sewage treatment capacity has remained relatively stable, with an average capacity utilization rate of 83 in the past three years.3%.In the future, the population growth and urbanization rate will increase, the urban population will continue to increase, and the company’s sewage treatment capacity is expected to continue to increase.3) The price of the company’s sewage treatment varies in different regions, and the average national price is 1.07 yuan / cubic meter.The company’s sewage treatment pricing principle is based on the franchise agreement and the actual situation, and the price adjustment mechanism is implemented according to the agreed agreement, which is usually adjusted once every two years, and a guaranteed minimum water volume is also agreed on the treatment scale, so the business profitability can maintain a high level.4) The company’s traditional water business has sufficient reserves for its existing projects, and its subsequent performance growth can be expected.As of the end of 2018, the company’s tap water supply and wastewater treatment capacity reached 1,402 respectively.92, 1,226.00 a day / day; capacity under construction 413.65 day / day, expected in 2019?Production will start in 2021.As of the end of the third quarter of 2019, the company’s balance sheet had a construction surplus of 182.USD 600 million, which is 59% of the balance of fixed assets + intangible assets, and the reserve of projects under construction is redundant. Revenue from water construction business over the past five years has reached a CAGR of 77.9%, sewage pipe network construction and sponge cities are expected to become the future growth point of performance.The company has dozens of water plant engineering construction experience, and its subordinate engineering companies have multiple engineering professional qualifications, including first-level general contracting for municipal public works construction, first-level general contracting for construction engineering, and municipal public works (water supply and drainage for engineering consulting units).) Class A qualifications, etc.1) The company’s water construction business income in the first half of 19th.0 million yuan, an increase of 10 in ten years.2%, gross profit margin of sewage treatment business in 2018 was 27.6%.In the first half of 19, the company’s Changshu project operated stably. Fuzhou, Guyuan, Sanya, Shunyi, Lintong and other projects will gradually enter the operation phase (partial operation) in batches.In addition, the company’s sludge business has grown rapidly, and green resource projects such as urban green heating, water source heat pump system heating, and water reuse have continued to advance.These factors led the company’s water business construction revenue growth in the first half.The company’s water construction business revenue has grown rapidly since 14 years, and the compound growth rate of revenue from 14 to 18 years has reached 77.9%.The gross profit margin of the company’s water construction business has remained at 27% in the past two years, which is relatively stable, and it has remained at this level with a high probability in 19 years.2) The total investment of important projects under construction in the first half of 19 was 167.600 million, including 5 important projects under construction, with a total investment budget of 90.200000000.In the first three quarters of 19, there was a surplus of 182 under construction.600 million in the third quarter of a single quarter of construction in progress increased by 2.5 billion. In the first half of 19, revenue from solid waste business increased by 30%. Kitchen waste and incineration power generation promoted accelerated development. 1) The company’s solid waste business is mainly divided into two parts, domestic and overseas.As of the first half of 19, the company’s internal solid waste treatment projects have entered a total of 45 construction and operation periods.The company’s internal solid waste business subsidiary pioneered a total of 72 domestic projects in the environment. The types of projects cover waste incineration power generation, landfill, anaerobic treatment, garbage collection and storage, comprehensive treatment of hazardous waste, dismantling of waste electrical appliances and biomass power generationThe total investment is about 18.7 billion yuan, and the total design scale is about 1,599 millimeters of annual domestic waste disposal, and about 3.2 million pieces of electronics and electrical appliances are dismantled every year.The overseas solid waste business is mainly based on BCG NZ, a New Zealand company acquired by Hong Kong and Singapore’s ECO.2) The company’s waste treatment business income in the first half of 1920.20,000 yuan, an annual increase of 30.1%, gross profit margin of solid waste treatment business in 2018 was 32.4%.After the company’s solid waste business acquired the BCG NZ company in 2015, business revenue has grown rapidly and stabilized at more than 3 billion. At the same time, the gross profit margin has been relatively stable, and it has remained above 30% for 15 years.Benefiting from the waste classification policy, the company’s kitchen waste anaerobic digestion project maximized its production capacity.In the first three quarters of 19, the company’s food and kitchen waste treatment projects in Hangzhou and Yangzhou have basically reached full capacity.With the full implementation of the garbage classification policy in 46 pilot cities in 2020, the amount of food and kitchen waste disposal is expected to increase rapidly in the future.3) The company’s overseas solid waste business is relatively mature and stable, with overseas revenue in 201826.1 ppm, a ten-year increase of 2.6%, gross margin reached 32.2%.As the New Zealand solid waste market matures, overseas business revenue has remained stable and alive.CAGR of operating income from 15 to 18 years is 8%, with an average gross margin of 33%.Since 16 years, the company has provided stable gross profit of more than 800 million yuan.4) The company’s solid waste business mainly deals with domestic waste (including kitchen waste). The income from domestic waste treatment in 2018 was 27.4 trillion, accounting for 21 of total revenue.97%, gross margin is 32.12%.The gross profit margins of the company’s three waste treatment types are roughly the same.The domestic and overseas domestic garbage disposal volume in 18 years was roughly 2: 1.5) In the first three quarters of 19, the company’s waste-to-energy business gradually completed an amount of 279.97 million kWh of on-grid electricity, which later increased by 33.89%.Among them, the growth rate of power generation in Guizhou Province accelerated to 362.11%.At the same time, it is beneficial to reduce taxes and cut taxes.14%.In the third quarter, the company’s waste power generation business had a total revenue of 47.24 million yuan, which will increase by 18.63%.The company actively develops waste power generation business. In 19 years, it signed a number of incineration power generation projects with a total design scale of 3550 tons / day.The waste incineration power generation business has huge market space and is expected to become a new growth point for the company’s performance in the future. Give full play to the advantages of financing, the nationwide layout, leading growth rate. The financing cost budget has significant capital advantages.1) The company’s financing cost in 2018 was 4.3%, while the average financing cost of comparable listed companies is 5.1%.Since 2018, due to the deleveraging policy, many environmental protection companies have experienced tight funding chains, and some debt default problems have occurred.Some private enterprises have dated state-owned strategic shareholders, Oriental Garden, and Huaneng Technology also transferred control.As a holding company of Beijing SASAC, the company’s financing capacity is supplemented by a financing cost of 4 in 2018.3%, while the average financing cost of comparable listed companies is 5.1%.Here the 2018 financing cost = (interest expense + interest capitalization amount) / annual average value of interest-bearing debt; annual average value of interest-bearing liabilities = short-term expenditure of each quarter in 2018, non-current liabilities due within one year, other current liabilities, Long-term borrowings, expectation of the sum of payable bonds.2) In 2019, the size of corporate bond issuance increased by 72% to US $ 11.7 billion, reducing the average interest rate from 4.5% dropped to 4.1%.2016?In 2019, the scale of corporate bond issuance was 40, 25, 68, and 117 trillion US dollars, and the average incremental interest rates were 3.2%, 4.8%, 4.5%, 4.1%. In May 2019, the company announced a rights issue plan, placing 3 shares for every 10 shares and raising no more than 5.3 billion yuan.Placement to all shareholders at the rate of 3 shares for every 10 shares.The price of the rights issue is based on the average price of the company’s stock trading 20 trading days before the announcement of the issue. The market price discount method is used to determine the rights issue price.The size of the funds raised from the rights issue will not exceed RMB 5.3 billion. After deducting the issuance expenses, the funds will be used to supplement the company’s working capital and repay bank loans. The company’s business has spread across the country, and the compound growth rate of water business revenue from 13 to 18 years has reached 23.5%, among the best in comparable companies.Compared with similar state-owned enterprises, the company has a strong ability to take projects, covers a large number of provinces and cities, and has a rapid compound growth in water revenue. The revenue growth rate is second only to Zhongyuan Environmental Protection, which completed the asset acquisition in 2016. Earnings forecast and estimation level: The first recommendation rating is given. Accelerated share capital expansion has accelerated since 2017, revenue growth has accelerated since 2018, and profit growth has accelerated since 2019.Water affairs and solid waste operating assets are mostly implemented in the BOT mode, and the initial investment of the project is breakthrough.The company’s capital expenditure has accelerated since 2017, and the net cash replacement of investment activities has increased from 38 in 2016.900 million to 70.200 million; In 2018, with the initial investment projects put into operation, revenue growth rose to 34.1%; In 2019, with the initial production projects gradually reaching production, the growth rate of net profit attributable to mothers accelerated to 31.8%. Judging from comparable companies’ estimates, the first capital stock 2019?PE and PB will be 17 in 2020.8, 14.9, 1.55 times.The performance of Capital Group has increased rapidly, and the net profit attributable to mothers in the first three quarters of 2019 has further increased by 31.8%, comparable company’s growth rate was -8.9%.The current valuation of Capital Group is higher than that of comparable companies, and the median PE of comparable companies in 2019 is 14.5 times. Investment suggestion: Maintain the recommended level for high-quality water and environmental protection targets.Expected company 2019?EPS will reach 0 in 2021.17 yuan, 0.20 yuan, 0.24 yuan, corresponding to 18 times, 15 times, 12 times the price-earnings ratio.The company’s current market net interest rate is 1.55 times.As the environmental protection projects invested in earlier stages have been put into production, the company’s performance growth has maintained rapid growth.The company has outstanding financing advantages, a nationwide business layout, and a preliminary growth in performance. Risk reminder: Project advancement fails to meet expectations; project operation efficiency fails to meet expectations; policy risks

China Sports Technology (603679) Company’s In-depth Study： Gold Rush 5G New Infrastructure Smart Street Light Trying to Pry 100 Billion New Markets

China Sports Technology (603679) Company’s In-depth Study: Gold Rush 5G New Infrastructure Smart Street Light Trying to Pry 100 Billion New Markets

From the regional leader to the national leader, the 5G era has leveraged the 100 billion smart street light market companies to become the leading urban lighting in the western region. Through the entire industrial chain service solutions from lighting solution design, product development and manufacturing, project engineering installation and later operation management and maintenance, etc.Provide capabilities.

The company’s leading design, research and development, and perfect industrial chain layout are rapidly expanding into regional markets nationwide and will continue to improve in the future.

At the same time, 5G new infrastructure will open up hundreds of billions of new markets for smart street lights. The company has an early layout of smart street lights and a full range of products. It actively cooperates with Huawei, towers and other equipment vendors and operators to take the lead 武汉桑拿 in enjoying industry dividends.

Continue to benefit from the prosperity of the city’s lighting industry, with the expected expansion from the west to the whole country, and urbanization continues to advance (urbanization replaces 59 every year in 2018).

6%, continuing contradiction with expectations) + energy saving and environmental protection replacement (green energy saving lighting replacing traditional lighting trend is still continuing) + landscape lighting (night travel economic demand, lighting projects, etc.) to drive the industry’s continued prosperity; substitution, company design, research and developmentThe advantages of product types and the layout of the entire industrial chain are prominent, and the market is expanding rapidly from within Sichuan to outside the province. The market share of urban lighting business will continue to increase in the future, driving the company’s urban lighting business to continue to grow rapidly.

5G new infrastructure opens up hundreds of billions of new markets for smart street lights. From product to operation, it opens up huge growth space for the company. Regardless of height, spacing, power supply, security and management, smart light poles are natural carriers for 5G micro substrates.The ultra-dense networking of 5G micro-stations will drive the demand for massive smart light poles. Smart street lights are the direct beneficiaries of the 5G new infrastructure wave.

We estimate that the average smart light pole market space is 151.2 billion.

More importantly, smart street lights will bring a greater breakthrough to the industry in the business model.

Due to this important feature of smart street light collection data, this means that street lights are no longer a one-time engineering project, street lights will become a city’s data entrance, and the value of data generated by operations will become increasingly prominent, opening up a widermarket.

The company has laid out smart street lights early. It has developed 11 different categories of smart street lights, such as the window of the city, which can fully support 13 functions of smart street lights. Therefore, it can install itself according to needs.

The company has joined Huawei’s eLTE ecosystem and has cooperated with companies such as Tower and Inspur Software to jointly promote the construction of 5G Internet of Things wisdom.

The first smart street light operation project was responsible for Huati Technology. It is expected that most of its charging methods will be found by users, which is more operational.

Based on our estimates, we expect the internal income of the entire project to increase by 9%.

11%, with a payback period of approximately 8.

In 52 years, the operation model that is expected to become a smart street lamp has been rolled out across the country.

Investment suggestion: As a leading company in this segment of the field of road lighting engineering, the company has outstanding design capabilities and R & D advantages, benefiting from the industry boom and rapid expansion nationwide, and the traditional main industry promotes stable and rapid growth.

In addition, the company has actively promoted the field of smart street light engineering. Through the acceleration of 5G commercialization, the company has significantly benefited from the smart street light products and project operations.

The company’s 2018-2020 net profit is expected to be zero.

74/1.

52/2.

1.7 billion, corresponding to PE of 24 times and 17 times in 19-20 years, maintain “Buy” rating.

Risk Warning: The expected investment growth is faster than expected in the downlink, the smart street light project and 5G landing are not up to expectations, and the framework agreement is converted into a contract.

Leading Intelligence Manufacturing (002600) Performance Preview Comment： Leading Technology’s Q3 Continuous Growth Gradually Beyond Expectations

Leading Intelligence Manufacturing (002600) Performance Preview Comment: Leading Technology’s Q3 Continuous Growth Gradually Beyond 杭州夜生活网 Expectations
First, the event overview On October 11, the company announced in the first three quarters that the net profit attributable to the parent was 19.0-21.0 million, compared with the expected 3 in the same period last year.5 trillion in the third quarter of a single quarter is expected to return to the mother net profit of 7.9-9.9 trillion, an increase of 243% -330% in a year. Second, the analysis and judgment of Lingyi Technology’s own excellent operating performance, the performance of the report affected by other subsidiaries slightly dragged down the company’s overall Q3 single-quarter net profit attributable to the parent is 7.9-9.9 trillion, which contains 3.The investment income of 950,000 yuan, after excluding it, is expected to be 3 in the quarter.9-5.US $ 900 million, we judge that Q3 has improved mainly due to the introduction of Oriental Liangcai and Jiangfen Magnetic Materials’ two major customers than expected, but we expect that the operating performance of Lingyi Technology in the single quarter will be in line with expectations.Excellent, we think Lingyi Technology’s preliminary operating results are expected to continue to exceed expectations. Customers and businesses in all sectors are synergistic. Next year, the trend of subsidiaries will be better affected by trade frictions. The growth of large consumer electronics domestic customers is expected to return to a high growth track next year.The company’s Dongfang Liangcai is expected to be introduced to major customers, which will bring continuous performance recovery.In terms of business collaboration, the company plans wireless charging module products. Jiangfen Magnetic Materials’ magnetic materials are expected to be introduced first. It is expected that the volume of magnetic materials will increase next year, and the overall trend of the subsidiary will be better. Looking forward to next year, Leading Puzzle will set sail again. Airpods continue to be popular, domestic machines accelerate development, Salcomp integration is smooth, Leading Technology’s own performance is expected to continue to exceed expectations, and the company will deploy cooling modules, wireless charging modules and motor structural components.The main force of annual performance growth.In the long run, the company starts with die cutting, integrates upstream materials and cuts into downstream modules, which further opens up growth space and is expected to become a true platform company for consumer electronics. Third, investment recommendations We estimate the company’s revenue in 19-21 is 271.1,402.4,484.500 million, net profit attributable to mother is 26.300 million (assuming 19Q4 fair value change profit or loss is 0), 28.8, 38.90,000 yuan (20-year and 21-year averages assume a fair value gain or loss of 0), and the corresponding estimate is 27.0, 24.7, 18.3 times.We estimate that Lingyi’s operating results for the years 19-21 will be 22 and 29.9, 39.8 ppm, corresponding to an estimate of 32.3, 23.7, 17.9 times, with reference to SW Electronic TTM’s estimate of 34 times, we think the company is still undervalued and give a “recommended” rating. 4. Risk warning: Sino-U.S. Trade frictions intensify, sales volume of large customers falls short of expectations, and technology conversion of large customers falls short of expectations

Fund intensive consumption of Maotai’s 1,122 fund positions increased 54% in the second quarter

Fund “intensive consumption” of Maotai’s 1,122 fund positions increased 54% in the second quarter

Original title: Fund “intensive consumption” of Maotai’s 1,122 fund positions in the second quarter increased by 54% from the previous month Source: Zhang Zhiwei, a reporter from the Securities Daily, said that the figures were unchanged and unchanged.

As of July 21, according to Oriental Fortune Choice data, 8318 funds reported in their second quarter results that the data was supplemented. From the perspective of the top 10 fund heavy stocks, the biggest “change” is 北京夜网probably the change in the number of funds held. In the first quarter, Ping An of China had846 only fund holders, soared to 1,243 in the second quarter, Guizhou Maotai had 727 holdings in the first quarter, and 1122 in the second quarter, an increase of 46 from the previous quarter.

9% and 54%.

　　The list of the top ten heavy stocks in the financial and food and beverage funds list has changed slightly in the second quarter. Ping An of China, Maotai, Guizhou, and Wuliangye are still in the top three., Vanke A, Changchun High-tech, Wen’s shares quietly disappeared, and replaced by Midea Group, Industrial Bank and Industrial and Commercial Bank.

The top 10 heavy stocks in the second quarter were: Ping An of China, Maotai of Guizhou, Wuliangye, Yili, Gree Electric, China Merchants Bank, Midea Group, CITIC Securities, Industrial Bank, and Industrial and Commercial Bank of China.

In addition to the significant increase in Ping An and Guizhou Moutai Fund holdings, Wuliangye’s holding funds also increased from 495 in the first quarter to 739 in the second quarter, an increase of 49% from the previous month, and Yili’s shares increased from 424 to 721, an increase of 70 from the previous month.%.

Industrial and Commercial Bank of China increased from 226 to 480, which has more than doubled from the previous month, and Gree Electric has also increased in different degrees.

The fund’s position on leading blue chips shows that the fund is increasingly favoring leading stocks.

　　From the point of view, Yili shares rose from 7th to 4th, ranking before China Merchants Bank and Gree Electric.

From the perspective of the top ten heavy storage stocks, in the second quarter, public funds continued to increase their positions in liquor, food, banking and insurance, as well as the food and beverage sector represented by liquor and dairy.

Ping An of China still has the largest market capitalization of public funds with a total market value of $ 74.9 billion. This is also the 19th consecutive quarter of Ping An’s largest market capitalization since the fourth quarter of 2014.

In Maotai, Guizhou, Wuliangye and Yili are the second, third and fourth largest heavy stocks. The number of positions in the top ten heavy stocks of public funds has increased compared with the end of the previous quarter.Quarterly report of 4.

3% increased to 4.

62% of the shares in Guizhou Moutai were held by 3.

79% to 4.

6%.

　　From the secondary fund companies such as Yi Fangda, Huaxia, Invesco Great Wall, Minsheng Bank and other disclosed the second quarter report of the subsidiary fund.

Leading stocks in the consumer and financial sectors such as Ping An of China, Maotai of Guizhou, Wuliangye, and China Merchants Bank are still their heavy stocks.

　　In response to the fund ‘s push for Bailong ‘s stock market, Yang Delong, chief economist of Qianhai Fund, explained to the Securities Daily reporter that from the second quarterly report, the fund ‘s increase in Bailong ‘s stock market is very strong, and more and moreThe fund recognizes the value of the White Dragon Horse Stocks, which represent the most active stocks in China and have a relatively good investment value.

A public fundraiser, who declined to be named, said that this phenomenon is also related to the establishment of 504 funds this year.

　　Investment in Moutai has a “different” voice. The most striking stock in the second quarter was undoubtedly the liquor stock.

Guizhou Moutai and Wuliangye are second only to Ping An of China and have become the second and third largest heavy stocks in public funds with total market capitalization of 56.9 billion and 38.1 billion yuan, respectively.

Wuliangye closed at 45 on the first day of this year’s opening.

24 yuan, the closing price on July 19 was 122.

14 yuan / share, an increase of 215 during the year.

At 7%, the first day of Guizhou Moutai New Year’s opening price closed at 584.

44 yuan / share, the closing price on July 19 was 955.

87 yuan / share, an increase of 63 during the year.

55%, from the second quarterly report, in the consumer side of E Fund, E Fund’s small and medium-cap market is the largest active equity fund holding Maotai and Wuliangye in Guizhou. E Fund has thus become the fund company with the two largest stocks.

　　According to the second quarter report of the Fund, Wuliangye ‘s preferences have continued to increase, but the market ‘s optimism about Guizhou Moutai and Wuliangye is not one-sided. Other voices have been killed from oblique stabs.

　　Dan Bin, chairman of Oriental Harbour Investment, must have been a firm growth supporter of Moutai, Guizhou in the market.

In the beginning of 2018, Bin shouted in an interview with the media: “Guizhou Moutai is actually not expensive. By the end of 2018, it may rise to make the market fall.

“Moutai has also risen from about 600 yuan / share in early 2018 to a maximum of 1035 yuan / share this year, which has indeed made the market profit.

On July 13, 2019, Dan Bin said in an interview with the media that “the leading liquor companies are too expensive and will sell”, which made the market interpret it as Dan Bin’s possible concern about Moutai in Guizhou.

　　Yang Yongsheng, a well-known food analyst at China Merchants Securities, said in an interview with the Securities Daily that the structure of Moutai wine is driving growth, and that the quality of the series of wine is more important than the volume.

　　Yang Yongsheng continued to be optimistic about Moutai in Guizhou for three reasons: First, the revenue growth rate of Moutai in Guizhou in the second quarter fell under a high base, and the growth rate is expected to pick up in the second half of the year, with the goal of 100 billion yuan within reach.

The company’s total operating income for the first half of the year was 411.

700 million, net profit attributable to mother 199.5 ten percent, an increase of 16 per year.

8% and 26.

6%, of which 186 in the second quarter.

900 million yuan, an increase of 10.

9%, net profit attributable to mother 87.

300 million yuan, an increase of 20.

3%.

Second, the company continued to optimize the series of wine dealers. The number of wine dealers in the first half of the year decreased by 494, and the growth quality was more important than speed.

In addition, the company’s channel rectification is still continuing. In the second quarter, 60 Feitian Moutai dealers were still cancelled. Combined with the previous data, a total of 536 canceled. It is estimated that the cumulative replacement quota is more than 6000 tons.

In the first half of the year, direct sales accounted for 3.

9%, the promotion of the direct management system still needs to be accelerated.

The third is that the amount of advance receipts increased month-on-month, and the cash flow indicators were beautiful.

Guizhou Moutai Interim Report shows that the company received advances 122 in the second quarter.

600 million, an annual increase of 23.

200 million, an increase of 8 from the previous month.

苏州夜网论坛 8 ppm, gross profit margin increased, sales expense ratio decreased, and profitability improved.

Gross profit margin in the second quarter was 92.

0%, the proportion of Maotai liquor increased, while non-standard Maotai structure increased contribution.

Zhongshun Jierou (002511) commented in the 2019 Interim Report： profit is expected to increase during the year

Zhongshun Jierou (002511) commented in the 2019 Interim Report: profit is expected to increase during the year

Brief evaluation of performance In the first half of 2019, the company achieved revenue / net profit attributable to its mothers31.

72 ppm / 2.

75 ppm, an increase of 22 in ten years.

67% / 37.

59%, fully diluted EPS0.

22 yuan, exceeding market expectations.

Business analysis is expected to continue to benefit from significant price reductions in raw materials, and earnings in the third quarter may increase again.

In the first half of the year, the company continued to optimize its product structure and increase the proportion of high-end, high-margin products and non-rolled paper categories.

At the same 杭州夜网 time, the price of wood pulp in Q1 this year fell by 17.

With an impact of 47%, the preliminary comprehensive gross profit margin reached 36.

69%, the same ring increase of 0.

2pct and 2.

68 points.

Q2 wood pulp prices continued to fall, and international pulp prices fell 28.

9%.

We expect the Q3 company’s gross profit margin level is expected to increase again.

At the same time, the company’s inventory turnover days in the first half of the year were 78.

27 days, 9 shorter than the same period last year.

In 26 days, while operating efficiency improved, it also showed that the downstream demand of the company’s products was relatively strong.

Launched sanitary napkin brand to improve product layout.

In June of this year, the company’s personal care brand “Dorei Mi” was launched, and its products are mainly targeted at young women.

At the same time, the top layer of the “Dorei Honey” sanitary napkins is made of 100% imported cotton, which focuses on core selling points such as “breathable and super-absorbent”, positioning products in the high-end market with differences.

We believe that the company cuts horizontally into a field of care to improve the product line layout and create new growth points for future performance.

In fact, the company, as a domestic leader in high-end household paper, has a high brand awareness of copyright, and it must have a competitive advantage to enter the field of personal care products.

Finally, a protective product belongs to the high-margin industry, and subsequently the company’s profitability has increased with the volume of sanitary napkin products.

Promote the bamboo pulp and paper integration project, and it is expected to realize a dual-brand operation model in the future.

On July 10, the company announced that it was proposed to be 40.

USD 8.7 billion to build 30 bamboo pulp and paper integration projects in Quxian, Dazhou, Sichuan.

Among them, the construction scale of bamboo pulp is 31.

8 announced / year (planned investment 17.

800 million US dollars, the construction scale of tissue paper is 30 initial / year (planned investment 21).

100000000).

The company has a long-term investment agreement with the Dazhou Municipal Government.

With this project investment, the company gradually completed the upstream industrial chain extension and realized the integrated business model of bamboo pulp and paper.

At the same time, “Sun” will also be used as the project’s tissue paper brand to achieve comprehensive coverage of high-end and low-end consumers.

In the future, the company will form a “sun + Jierou” dual-brand operation model, and at the same time carry out project investment and optimize intermediate production transfers to drive overall operating efficiency.

Profit forecast and investment advice The company continues to optimize its product structure to maintain stable profitability and improve profitability of new product promotion.

We predict that the company’s EPS will be 0 after full dilution in 2019-2021.39/0.

47/0.

58 yuan (three years CAGR23.

06%), corresponding to PE of 34/28/23 times, maintaining the company’s “Buy” rating.

Risk factors: the risk of rising exchange rates and pulp prices; the new product promotion is less than expected risk; the production capacity is less than the risk; the company had 1,467 in 北京夜生活网 May and June this year.

820,000 shares and 175.

770,000 shares lifted, risk of reduction

Zhenhua Technology (000733) Annual Report Comments： Performance is slightly higher than expected

Zhenhua Technology (000733) Annual Report Comments: Performance is slightly higher than expected

Event: Recently, the company released its 2018 annual report and achieved revenue of 53.

3.8 billion (-33.

43%), net profit attributable to mother 2.
.

5.9 billion (+27.

17%).

Core point of view The first-level discipline of revenue actively compresses inefficient businesses, and performance growth is slightly higher than expected.

In 2018, the company achieved revenue of 53.

38 ppm, the temporary reduction was mainly due to the company’s initiative to reduce the scale of the low-margin mobile phone foundry business (the business revenue decreased by 52%).

The company realized profits 2.

590,000 yuan, an increase of 27 in ten years.

17%, mainly benefited from the improvement of profitability brought about by the optimization of product structure.

Against the backdrop of high military products, the company’s core main business revenue and benefits continued to grow rapidly, the coverage of efficient products expanded, and domestic alternative varieties increased.

Improving quality and efficiency, the gross profit margin, net profit margin and ROE hit a new high in the past decade.

Absolutely, the company continues to lose weight and keep fit, focusing on advantageous industries, compressing inefficient businesses, and improving profit quality.

In 2018, the company’s gross profit margin, net profit margin and ROE indicators improved significantly, hitting a new high of ten years.

The company’s gross profit margin was 14 from 17 years.

94% increased to 25 in 18 years.

14%, mainly due to: 1) optimization of product structure, reduction in the scale of low-margin mobile phone foundries, and high-margin high-tech electronics business.

2) The transition and upgrading of high-tech military electronics, and the increase in product competitiveness have led to an increase in gross profit margin.

The company further expanded the technological innovation and R & D expansion of high-tech electronics, with 18 years of R & D expenditure.

500 million US dollars, as the basis for improving the competitiveness of competitive products.

The growth rate of endogenous performance has increased, and there is a large space for integration of high-quality chip assets in vitro.

The company is a domestic military passive inertia leader. Under the background of strong demand for information technology construction, high-tech electronic business has developed rapidly.

In addition, the company did a good job of addition and subtraction, optimized the industrial structure, significantly improved margins, and increased profit growth.

The introduction of the first budget incentive project at the end of 18 is expected to further stimulate participation and revitalize the enterprise.

In addition, the company’s major shareholder, China Zhenhua, has successively controlled or held promising stocks, and domestic chip companies with strong technical strength, including Zhenhua Scenery, Chengdu Huawei, Suzhou Shengke, and Tianjin Feiteng, have large integration space.

Financial forecasting and investment recommendations In consideration of the continuous improvement of the company’s profitability in optimizing its structure, we raised the company’s gross profit margin and adjusted the company’s EPS in 19-20 to 0.

60, 0.

72 yuan (the original forecast was 0.

55, 0.

65 yuan), and increase the 21-year forecast to 0.

86 yuan.

With reference to the comparable company’成都桑拿网s 31 times PE in 19 years, the target price is 18.

46 yuan to maintain the “overweight” level.

Risk warning: military orders and revenue recognition are worse than expected

Addison Precision (603638)： Performance in line with expectations

Addison Precision (603638): Performance in line with expectations
Core point of view: The company released a 19-year interim report, and the company’s operating income in 2019H17.430,000 yuan, an increase of 47 in ten years.56%; net profit attributable to mothers1.82 ppm, an increase of 48 in ten years.92%. Demand for breakers has continued, cashback has been strengthened, and cash flow has increased. According to data from the Construction Machinery Association, domestic excavator sales in the first half of 2019.720,000 units, an increase of 14 in ten years.2%.At the same time, after the demolition operations in cities, mining metallurgy, road maintenance and other fields gradually use the breaker to replace the traditional model. The increase in the ratio of hammers and the continued prosperity of the downstream have driven the demand for breakers.According to the company’s semi-annual report, the company’s revenue growth was mainly due to large breakers and hydraulic components.In terms of quarters, the company’s revenue in 19Q2 was 3.79 trillion, an increase of 32 in ten years.08%; net profit attributable to mother is 92.59 million yuan, an annual increase of 30.53%.The company strengthened the management of accounts receivable, and the operating net cash flow in the first half of the year was 77.23 million yuan, a 10-year increase.87%.19H1’s overall gross margin and net profit margin were 43.17%, 24.45%, it is estimated that the overall pick-up last year. In view of the continuous heavy 杭州桑拿 volume of hydraulic components and maintaining a high growth rate, 19H1 Company’s hydraulic components revenue was 2.30,000 yuan, an annual increase of 37.29%.Due to the generally high working intensity of construction machinery every year, the shortening of the actual use cycle of hydraulic parts promotes the increase of replacement frequency.In 2018, the subsidiary’s hydraulic technology realized a net profit of 71.85 million yuan, and the hydraulic parts business began to gradually and steadily contribute to net profit.According to the disclosure of the announcement, the company intends to raise funds for non-public offering of no more than 700 million US dollars, which is mainly used for the expansion projects of hydraulic motors, main pumps and breakers.Based on the aftermarket, the company’s hydraulic parts began to enter the 武汉夜生活网 field of front-loading, and gradually made some breakthroughs, gradually expanded, and gradually increased the scope of customers. Investment advice: We predict that the company’s EPS in 19-21 will be 0.86/1.25/1.59 yuan / share.The PE of peer companies in 2019 is estimated to be 32x. The company and comparable companies are similar in industry characteristics and competition pattern. They are both leading enterprises in the field of specialized equipment.52 yuan / share, continue to maintain a “buy” rating. Risk warning: industry demand is lower than expected; new product development fails to meet expectations; intensified industry competition leads to price fluctuations; new capacity expansion is less than expected.

Chuantou Energy (600674)： Performance has remained calm for many years until the midstream power station is put into operation

Chuantou Energy (600674): Performance has remained calm for many years until the midstream power station 南京夜网 is put into operation

Event Chuantou Energy released the semi-annual report for 2019 Chuantou Energy released the semi-annual report for 2019, and the company achieved operating income in the first half of 20193.

19 ppm, a five-year average of 5.

65%; realize net profit attributable to shareholders of listed companies.

54 ppm, with a ten-year average of zero.

8%; net profit after deduction is 11.

4.6 billion, down 1 year.

44%; expected average ROE is 4.

65%, a reduction of 0 per year.

67 units.

A brief comment on the increase in Tianwanhe price does not resist the decrease in volume, the company’s revenue slightly decreased in 2019, the company’s revenue fell slightly in ten years, mainly due to the company’s holding power station Tianwanhe Company’s electricity sales revenue decreased.

In the first half of the year, the water inflow from the Tianwanwanhe Hydropower Station was significantly reduced compared to the same period last year, and policies related to ecological flow were implemented, and the company achieved power generation9.

5.3 billion kWh, 21 every ten years.

89%.

Although the company ‘s electricity for the first five months is temporarily settled in accordance with the priority generation contract (which may be improved and adjusted by the liquidation result in the future), the average on-grid electricity price excluding tax is temporarily zero.

279 yuan / kWh, surpassing the promotion of 4.

5 cents, but the increase in electricity prices is difficult to offset the impact of the AC offset, the company’s revenue in the first half of the period fell slightly.

65%.

Yalongjiang contributed stable investment income, convertible bonds were approved for the development of the merger of financing channels, and the investment income contributed by Yalongjiang Hydropower held by the company holding 48% of the shares accounted for more than 90% of the company’s maximum profit.

In the first half of 19, the Yalong River Hydropower generated 310 electricity.

5.9 billion kWh, a slight increase over the ten years 3.
.

86%; the average on-grid electricity price including tax is 0.

260 yuan / kWh, temporarily extended by 7.

41%; our estimated excluded electricity price is 0.

2276 yuan / kWh, temporarily separated by 5.

8%.

We judge that the short-term reduction of tax-included electricity prices is mainly caused by the reduction of the tax rate and the impact of the market-based electricity price settlement cycle.

In the first half of the year, the investment income contributed by Yalong River Hydropower to the company was 11.

0.7 million yuan, the average of ten years is 8.

74%; Affected by this, the company’s net profit attributable to its mother decreased slightly.

Overall, the operation of the Yalong River Hydropower is more than stable, and it is expected to continue to contribute to the company’s steady investment income.

Yalong River Hydropower has the overall development right of the Yalong River Basin, and the entire basin can be developed with a scale of nearly 30 million kilowatts.

The Lianghekou and Yangfanggou hydropower stations (total installed capacity of 4.5 million kilowatts), which are currently located in the middle reaches of the Yalong River, are under construction and are expected to be gradually put into operation in 2021-2023.

The company budget plans to issue convertible bonds and raise no more than 4 billion US dollars to increase the capital of Yalong River Hydropower for the construction of Yangfanggou Hydropower Station project.

At present, this application has been approved by the CSRC, and the company’s financing channels have been further developed.

In addition, the Yazhong DC (transmission capacity of 8 million kilowatts) of the midstream generator transmission channel is determined to land in Jiangxi. The current power supply and demand form in Jiangxi Province is tight, which guarantees the energy consumption after the midstream power station is put into operation.

With the successive production of midstream generators, Yalong River Hydropower is expected to further increase the company’s profitability.

The construction of the holding Yinjiang Hydropower Plant started, and the company’s value was maintained for a long time. The company-controlled Yinjiang Hydropower Plant, which maintains the “Overweight” 佛山桑拿网 rating report, was officially started.month.
The continuous advancement of the project is conducive to further strengthening and strengthening the company’s main clean energy business.
Considering the stable operation of the Yalong River Hydropower, it can contribute to the company’s stable investment income, and at the same time, the future endogenous growth is highly certain. We predict that the company’s EPS from 2019 to 2021 will be 0.

77, 0.

78, 0.

84 yuan, the company’s current dynamic market earnings accumulated 12 times, it is estimated to be reasonable, to maintain an overweight rating.

Risk warning: risk of fluctuations in incoming water in the Yalong River Basin; risk of electricity price adjustment

Qianhe Flavor Industry (603027)： The rapid development of high-fresh products nationwide speeds up

Qianhe Flavor Industry (603027): The rapid development of high-fresh products nationwide speeds up

Event: The company achieved operating income in 2019H1 5.

0.94 million yuan, an increase of 24 in ten years.

07%; net profit attributable to mother 8731.

490,000 yuan, a year reduction of 35.

55%; deduct non-attributed net profit 8015.

750,000 yuan, an increase of 34 in ten years.

35%.

The net profit attributable to mothers decreased, which was mainly due to the net income from asset disposal of 6910 in the same period last year.

The base effect brought by 520,000 yuan.

Among them, company Q2 achieved operating income3.

30,000 yuan, an increase of 29 in ten years.

96%, net profit after deduction is 3461.

30,000 yuan, an annual increase of 61.

64%.

The rapid development of high-fresh products promotes the stable and high growth of condiments. The condiment segment of the company in H1 2019 achieved operating income4.

950,000 yuan, an annual increase of 34.

3%, maintaining rapid growth.

Among them, soy sauce led the growth and realized operating income3.

56 ppm, an increase of 37 in ten years.

04%.

Vinegar realized operating income of 99.23 million yuan, an increase of 20 per year.

87%, an increase over the previous Q1.

Caramel performance continued to change, achieving operating income of 78.43 million yuan, a year-on-year decrease of 17.

64%.

In terms of products, high-end products achieved rapid growth, and the sales revenue of high-fresh soy sauce (high-fresh 135, extremely fresh) reached 82 million in the first half of the year, an increase of 100% +.

0 Adding soy sauce (organic, virgin incense) grows 49% annually.

The gross profit margin of the company in Q2 2019 was 45.

03%, down 3 from the first quarter.

23 units, or because the company will adjust the channel rebate at the end of 2018 to rebate in the form of product discounts, which will affect the gross profit margin.

The sales expense ratio increased slightly, and high-growth growth outside the province helped increase revenue. From a regional perspective, the base market realized sales revenue in the first half of the year.

92 ppm, an increase of 16 in ten years.

4%, compared 杭州龙凤网 to 6 in the first quarter.

The 23% growth rate has increased rapidly.

The market outside the province maintained rapid growth, with eastern China growing by 28 in the first half of the year.

52%, North China, Northwest China, and Northeast China all grew more than 50%, and East China increased 44.

98%.

The rapid growth in and out of the province is mainly due to the company’s advertising in local areas and the 0-add strategy formulated by the early company. The 0-add brand repositioning and cost placement focus are significant.

In addition, the company’s online sales maintained rapid growth. In the first half of the year, e-commerce sales were 52.96 million yuan, an annual increase of 59.36%.

2019Q2 three rate of 30.

65%, an increase of 1 from the previous quarter.

87 total, mainly because the sales 无锡夜网 expense ratio Q2 is 24.

32%, an increase of 1 over the first quarter.

65 units.

The company plans to acquire Hengkang to make a nationwide plan, and the company will continue to promote the construction of production capacity.

Acquired 100% equity of Zhenjiang Hengkang Sauce and Vinegar Co., Ltd. at a price of 150,000 yuan.

Zhenjiang Hengkang Sauce and Vinegar Co., Ltd. was established in October 1998. Its main business is the production and sales of vinegar. It owns the brands “Zhenheng” and “Hengtai”, and its main sales markets are Jiangsu and Hubei.

The company hopes to speed up the national vinegar market through the distribution of Zhenjiang balsamic vinegar.

At the same time, the company continued to promote the construction of production capacity and provide capacity guarantee for subsequent development.

The first phase of the company’s “25-month-per-year brewing soy sauce and vinegar production line expansion project” was completed and completed in June 2019. The second-stage construction and expansion completed 10 front-end / year brewing soy sauce production lines and5 front / year brewing soy sauce production line.

Earnings forecast This year, the company has set a condiment growth target of 30.

6%, from the perspective of sales in the first half of the year, we believe that this goal is likely to be completed, and the company is expected to achieve sales revenue of 13 in 2019.

21 ‰, an increase of 24% in ten years, and net profit attributable to mothers2.

24 ppm, 17% increase over ten years, EPS0.

6 yuan, the current expected corresponding value is 42 times, taking into account the evaluation characteristics of the condiment industry and the company’s long-term growth ability, give a 45-fold target conversion, target price of 27 yuan, give a buy rating.

Risks indicate that the company’s revenue growth is lower than expected, and market competition has intensified, leading to major management flaws.