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.
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.
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.
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.
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.
590,000 yuan, an increase of 25 in ten years.
34% / 54.
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.
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.
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.
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