Fenglin Group (601996): Continuous optimization of product structure and rapid profit growth

Fenglin Group (601996): Continuous optimization of product structure and rapid profit growth

Event: The company released a semi-annual report: the company achieved revenue in 19H1.

86 ppm, an increase of 37 in ten years.

17%; net profit attributable to mother 0.

90 ppm, an increase of 32 in ten years.

21%; net profit after deduction is 0.

89 ppm, a 43-year increase of 43.

32%.

Among them, the single and second quarter achieved revenue of 5.

47 ppm, an increase of 53 in ten 上海夜网论坛 years.

84%; net profit attributable to mother 0.

60 ppm, an increase of 51 in ten years.

69%; net profit after deduction is 0.

5.9 billion, an increase of 54 in ten years.

59%.

  Opinion: Revenue has steadily increased, and the growth rate of revenue and profits in the second quarter has accelerated.

By quarter, the company achieved revenues of 19Q1 / Q23.

39/5.

470,000 yuan, an increase of 16 each year.

78% / 53.

84%, second quarter revenue increased 61.

18%, revenue growth accelerated.

19Q1 / Q2 achieved net profit attributable to mother 0, respectively.

30/0.

60 ppm, a five-year increase of 5.

60% / 51.

69%, profit growth accelerated significantly in the second quarter.

19Q1 / Q2 achieved net profit after deduction of non-return to mother 0.

30/0.

590,000 yuan, an increase of 25 in ten years.

杭州桑拿网
34% / 54.

59%.

  The optimization of product structure led to a slight increase in gross profit margin and a slight decrease in expense ratio.

In terms of gross profit margin, the company’s gross profit margin in 19H1 was 23.

27%, an annual increase of 0.

22 points.

Benefiting from the optimization of the product structure, the proportion of high-end products such as fiber sheet and super particleboard continued to increase, driving the company’s gross profit margin.

In terms of expense ratio: the company’s expenses during the 19H1 period13.

90%, falling by 1 every year.25pct, sales / management / financial expense ratios are 7 respectively.

84% / 5.

68% / 0.

38%, the changes over the ten years were +0.

17 / -1.

10 / -0.

32pct.

Selling expenses increase by 40 per year.

30% is due to increased freight.

Increase R & D investment in this period, R & D expenses increase by 162% every year.

Finance costs fall by 26 each year.

23%, mainly due to the increase in interest income from deposits of raised funds.

  Earnings forecast and estimation: EPS are expected to be 0 in 19-21.

18, 0.

20, 0.

23, corresponding PE is 16X, 14X, 13X.

Give “Buy” rating.

  Risk reminder: downstream demand is less than expected, and raw material prices have risen sharply