Hikvision (002415): 3Q19 results meet expected operating conditions

Hikvision (002415): 3Q19 results meet expected operating conditions

This report reads: The company ‘s first three quarters of results are in line with expectations, and its gross profit margin remains stable. In order to deal with the increase in the company ‘s raw material inventory, domestic business has gradually picked up. In the long run, the company has huge room for growth.

Investment Highlights: Maintain “Overweight” rating and maintain target price of 40.

97 yuan.

The company achieved revenues of 39.8 billion in the first three quarters of 2019, an increase of 18% year-on-year and a net profit of 80.

3 billion, an annual increase of 8.

5%, deducting non-net profit 77.

900 million, an increase of 8 in ten years.

9%; 19Q3 single-quarter revenue of 15.9 billion yuan, an increase of 23% in the first half, net profit attributable to mother 38.

1 billion, a growth of 17 in ten years.

3%, deducting non-net profit 36.

700 million, an increase of 16 in ten years.

7%, the operating situation 深圳桑拿网 is improving quarter by quarter, and the performance is in line with market expectations.

We maintain the company’s EPS forecast for 2019/2020/2021 to 1.

40 yuan / 1.

70 yuan / 2.

06 yuan, maintaining a target price of 40.

97 yuan, increase the level.

The gross profit margin remained stable, in order to cope with the increase in the inventory of risk companies: 1) The gross profit margin of the company in 3Q19 was 46.

61%, an annual increase of 1.

04pct, a decrease of 0 from the previous month.

78pct, basically stable.

In terms of expense ratio, 3Q19 single quarter expense expense 21.

32%, a decline of 0 every year.

75pct, down 3 from the previous month.

45pct, which is mainly affected by the growth of income scale and exchange rate; 2) In order to cope with possible risks, the company 淡水桑拿网 gradually increased the reserve of raw material inventory from the beginning of the year, and the inventory amount at the end of the third quarter was 98.

4.5 billion, inventory turnover days from 77 in the same period last year.

8 days rose to 98 this year.

Within five days, the substantial increase in inventories was mainly due to the increase in raw material inventories such as chips.

Initial recovery of domestic business, preliminary results are expected to be 5%?
20% growth.

In the first three quarters, EBG and SMBG maintained good growth. Affected by macroeconomic and government demand, the first three quarters of PBG were in a state of depressed demand. It is expected that the PBG will gradually recover in the fourth quarter.

Under the trend of intelligent security, the company will continue to develop the AI algorithm, software, and hardware, which will lead the entire security industry into the era of material-information integration.

Risk warning: less than expected demand; increased trade friction; increased industry competition.

Shenneng (600642): Multi-point layout of regional energy leaders taking root in Shanghai is gaining momentum

Shenneng (600642): Multi-point layout of regional energy leaders taking root in Shanghai is gaining momentum

Leading coal-fired power generation technology, actively deploying new energy companies is a comprehensive energy company rooted in the Shanghai region. Power and oil and gas businesses are the company’s main sources of profit.

The company’s power business is mainly based on coal-fired power generation, and has extensive involvement in many fields such as gas power, nuclear power, and wind power.

The company’s coal-fired power generation has reached high-power, high-efficiency and advanced units, and its competitive advantage is obvious. The 1.35 million-kilowatt unit of Pingshan Phase II under construction is designed to consume less than 250 g / kWh of coal.
Long-term thermal coal prices are at a high level, which has affected the company’s power business profitability to a certain extent.

We judge that the coal price hub in 2019 is expected to continue to fall, and the decline in coal prices is expected to bring conduction elasticity to the company’s coal power business.

In 2018, the company realized operating income of 362, benefiting from the growth of oil and gas business driven by the strong demand for oil and gas in Shanghai and the increase in electricity prices driven by the increase in the combined electricity prices of new generating units.

21 ppm, an increase of 11 per year.

78%; net profit attributable to mother 18.

26 ppm, a five-year increase of 5.

08%, showing a tendency to stop falling.

From the perspective of gross profit, the increase in the gross profit of the power business is the main factor for the improvement of the company’s performance.

Expanding oil and gas business and optimizing upstream energy assets The company’s oil and gas business is one of the company’s main sources of operating income, mainly around upstream crude oil, natural gas extraction, and mid-high pressure natural gas pipeline transmission and distribution.

The upstream oil and gas exploration business of the company is based on the Pinghu oil and gas field in the East China Sea. In the future, the exploration work of the Kepingnan Blockchain in Xinjiang will continue to advance.

In the midstream natural gas high-pressure transmission and distribution business, the subsidiary Shanghai Natural Gas Pipeline Network Co., Ltd. has the only natural gas backbone network in Shanghai and has competitive barriers to 合肥夜网 transfer.

At present, the midstream pipeline transportation business contributes nearly half of the company’s total revenue, but because this part of the business is implemented in a cost-plus mode, the profit margin is relatively high.

The fast-growing natural gas demand in the Shanghai area in the future is expected to continue to drive the growth of the company’s natural gas transmission and distribution business.

Investment income brings flexibility, giving “overweight” rating companies to contribute more than 50% of net profits over the years. From the perspective of recurring income sources, coal-fired power, gas power, pumped storage, nuclear power and other participating power generation companies are mainlythe Lord.

Overall, the company’s investment income is expected to remain stable, and the decline in coal 成都桑拿网 prices is expected to boost the profitability of coal-fired power companies, which will give the company some performance flexibility.

Considering that the market’s coal price hub is expected to gradually decline, the company’s construction projects are progressing smoothly, and the development of oil and gas resources is progressing steadily. We predict that the company’s revenue from 2019 to 2021 will be 377.

32 billion, 414.

5.5 billion and 437.

9.6 billion, corresponding to a net profit of 22.

59, 28.

8 and 31.

990,000 yuan, given an “overweight” rating.

Risk warning: Regional utilization hours reduce risk, and coal prices further increase risk.

Enhua Pharmaceutical (002262): Faster growth and richer R & D pipelines

Enhua Pharmaceutical (002262): Faster growth and richer R & D pipelines

Investment Highlights Recently, Enhua Pharmaceutical released the first quarter report of 2019, and the company’s operating income increased by 13 in the first quarter.

31%, net profit attributable to mothers grows by 23.



Company performance is in 杭州桑拿网 line with our previous expectations.

Earnings forecast: We maintain the unchanged mid-to-long-term growth logic of the company in the in-depth reports “Today’s Little Leader, Tomorrow’s Big White Horse” and “The Rise of the New Generation of White Horse Stocks”: Old breeds will grow steadily and second-tier products will maintain rapid growthThe initial heavy volume of new products and the three factors jointly drive the company’s performance to maintain a steady and rapid growth.

The company has higher administrative barriers in the field of narcotic drugs and psychotropic drugs. As a leader in fine central nervous system drugs, the company’s products as a variety of rigid drugs also benefit from the adjustment of the medical insurance catalog.

The certainty that the company’s performance will maintain steady growth in the 杭州桑拿网 medium and long term.

Although some varieties are under pressure to purchase with quantity, the company’s subsequent new varieties are expected to be successively listed, and the product line is constantly enriched.

We predict that the company’s EPS for 2019-2021 will be 0.

63, 0.

77, 0.

92 yuan, the 2019-2021 dynamic PE corresponding to the closing price on April 19, 2019 are 20X, 17X, 14X.

Continue to maintain the level of “prudent overweight”.

Pioneer catalyst: New product sales exceeded expectations.

Risk Warning: New business development is slower than expected, product price reductions exceed expectations, and the impact of volume purchases exceeds expectations.

SAIC Group (600104): The decline in wholesale sales narrowed and recovery is on the horizon

SAIC Group (600104): The decline in wholesale sales narrowed and recovery is on the horizon

The decline in wholesale sales has 重庆耍耍网 narrowed, and the recovery is in sight. According to the company announcement, the company completed wholesale sales of 440,000 units in July 2019, spanning -9.

3%, the decline in wholesale sales narrowed (wholesale sales in June fell by 16%).

Among them, SAIC Volkswagen’s wholesale sales temporarily decreased by -4.

6%, SAIC-GM’s wholesale sales increased by -18%, and SAIC’s passenger car wholesale sales increased by +8.

1%, SAIC-GM-Wuling’s wholesale sales doubled.


We believe that the main reason for SAIC ‘s wholesale sales to narrow is that the inventory of dealers will decrease after National Five ‘s inventory depletion in June, and the National Six inventory will need to be replenished. The total base for the same period last year (wholesale growth rate is 0%).inevitable.

We believe that automobile demand has gradually bottomed out and sales are expected to improve in the second half of the year. It is expected that SAIC’s EPS2 in 19-21.


79, 3.

00 yuan, maintain “Buy” rating.

For SAIC Volkswagen, GM Wuling’s decline narrowed, and its independent growth rate turned positive. GM continued to be obsessed with July, and SAIC Volkswagen’s wholesale sales volume was 14.

50,000 units, past -4.

6%, the main model of Lava, Santana sales are growing, Tiguan still stays, the new model T-cross sales of 5,800 units, Tuyue sales of 10,000 units, climbing situation is good; SAIC GM wholesale sales of 110,000 units, only -17.

6%, the first is the reduction of off-season production scheduling, reducing inventory, Yinglang, Cadillac, GL8 slightly increased, Ang Kewei, LaCrosse performance is still sluggish; SAIC independent wholesale sales5.

20,000 units, an increase of 8% a year ago, sales of the main model RX5 still need to reduce the fog, the new model MGHS, i5 sales are higher, RX5 MAX is worth looking forward to; SAIC-GM-Wuling wholesale sales of 10.

90,000 units, -16 a year.

7%, the decline narrowed.

We believe that Volkswagen and independent sales have gradually stabilized, and the improvement in GM’s sales lies in whether new models launched in the second half of the year can be sold.

SAIC-GM entered the new model cycle in the second half of the year, and its sales volume is expected to improve. According to the company’s announcement, SAIC Motor’s wholesale sales volume will be -16 in 2019H1.

5%, of which SAIC Volkswagen’s wholesale sales are every 10%, SAIC-GM’s wholesale sales are -13%, SAIC’s independent wholesale sales are -13% each, and SAIC-GM-Wuling’s wholesale sales are -30% each.

We believe that due to the decrease in automobile demand, the decline in the launch of new SAIC models in the first half of the year, and the decline in luxury car prices to squeeze the joint venture brand market, the overall wholesale sales of SAIC Group is slightly weaker than the industry sales growth rate.

Looking forward to the second half of the year, SAIC-GM will launch Chevrolet Chuangku, Angola GX, Cadillac XT6 and other seven new vehicles, which are expected to ease sales pressure.

We maintain the previous SAIC Group’s wholesale sales of 6% per year?
-7% judgment.

The industry is recovering, and there are many catalysts in the future. Maintain “Buy” rating. We think 7?
August is the traditional off-season sales season. Some of the demand was overdrawn in June, but it was changed to “Golden Nine Silver Ten”. The dealers had replenishment demand at the end of August, and sales in September are expected to improve.

If industry demand improves, the company estimates 杭州桑拿网 that it is expected to increase.

In addition, SAIC Audi and Volkswagen MEB plants may be put into operation in October 2020, and future development is expected.

The second half of the year is the SAIC-GM new model cycle, and sales are expected to gradually improve.

We expect the company to achieve net profit of 300,325,350 attributable to mothers in 19-21.

50,000 yuan, corresponding to EPS2.


79, 3.

00, to maintain the company in 2019?
12 times PE estimate, maintain target price of 28.

84 yuan.

Risk warning: The demand for automobiles is not up to expectations, the sales volume of new models is not up to expectations, and Sino-US trade frictions are intensifying.

China Life Insurance (601628): Values, Channels, Assets and Debts Exceeded Expectations

China Life Insurance (601628): Values, Channels, Assets and Debts Exceeded Expectations

The company announced the third quarter of 2019: operating income of 624 billion, an annual increase of 15.

4%; net profit attributable to mothers was 57.7 billion, an increase of more than 190%, exceeding market expectations; the value of new business further increased by 20.

4%, exceeding expectations and far exceeding the growth rate of its peers.

The three quarterly results were much better than expected, and investment contributed.

The company’s net profit attributable to its mother in the first three quarters was 57.7 billion, an increase of more than 190%, and in the third quarter alone was 20.1 billion, an increase of more than 483%. The 北京桑拿网 performance growth exceeded expectations: The total profit in the first three quarters has exceeded the expected annual profit scale of mainstream market institutions.The third quarter profit set a new record for the company’s historical quarterly performance.

The reasons for the growth in the third and third quarters are consistent with our relative expectations: (1) The investment income has increased significantly. The investment income in the third quarter alone was 45.8 billion, a 87% increase over the same period. In contrast, the market performance over the same period (declining equity market and overall bond market)Shock), the high growth rate of investment returns deeply reflects the company’s continuous deepening of the effectiveness of market-oriented reforms of the investment management system.

In 2019, the 杭州桑拿 company grasped the window to increase the allocation of ultra-long-term local bonds and high-quality non-standard assets, and the income increased; at the same time, the company strengthened the allocation of core equity assets, and the distribution income also increased significantly. The grasp of the rhythm of stocks and bonds jointly promoted the net investment yield.The same / ring ratio is increased by 0.

21pct / 0.

17 points to 4.

82%; (2) The tax rate is reduced, and the adjustment of the prepayment policy of fees and commission taxes reduces the company’s overall tax rate, and the yield in the third quarter is only 11.

9%, pushing up the scale of profits.

In the first three quarters, the increase in profit scale due to the decline in the overall tax rate was 4.4 billion, which is obvious.

The growth rate of new business value exceeded expectations, and the transformation achieved initial appearance.

The value of new business in the first three quarters increased by 20.

4%, exceeding market expectations and continuing to lead the industry (Ping An was only 4.

5%, CPIC and Xinhua’s growth rate is expected to be negative).

The core of the company’s growth against the market lies in the continuous optimization of the product structure under the background of new orders remaining relatively stable. The company adheres to the “reinvigorating the value of life” business model around the goal of “rejuvenating China Life”.Comprehensive transformation guarantees product sales, and at the same time, it sets higher guarantee product evaluation indicators.

Growth rate of new business value in the first three quarters (20.

4%) than the middle report (22.

7%) Slightly lower than expected in the market. Due to the pre-assessment in advance, the focus of work shifted to human development in the third quarter, and the growth rate of new orders was slightly distorted. However, as the company continued to focus on sales of guaranteed products, the product structure was stillContinuous optimization and further increase in the value rate pushed the new business value to gradually grow faster than expected.

In the first three quarters, the proportion of guaranteed products in the first year’s premiums increased by 8%.

79 averages, a further improvement over the 5 additional reports.

Looking ahead, in 2020, the company’s new business value is expected to achieve continued growth against a high base, and the transformation will turn into a fleeting one.

Some breakthroughs, pre-sale work ahead of schedule, the growth of manpower scale, product competition and other comprehensive factors, 2020 starters are expected to achieve double-digit growth against a high base.

At the same time, at the same time, the company’s performance meeting indicated that in 2020, it will further increase the evaluation of guaranteed products based on 2019. With reference to the current improvement of the company’s product structure, the company’s overall new business value rate will continue to increase and promoteGradually realize the value of new business and maintain a high-speed growth trend, and continue to verify the company’s transformation speed, determination and results.

The team grew faster than expected, and “volume expansion” paralleled “improvement”.

(1) In terms of volume, at the end of the third quarter, the company’s agent size was 166.

30,000 people, an increase of 14 in ten years.

5%, an increase of 15 from the initial period.

4%, an increase of 6% from the mid-month report, an increase that surpassed market expectations.

In 2019, the company’s agent team showed a trend of increasing quarter by quarter (18A = 1.44 million, 19Q1 = 153.

70,000, 19H1 = 157.

30,000), the growth of the company’s team is based on the requirements of higher entry standards and alternative and relaxed export standards, and the continuous growth of manpower in the industry, the core reason for the strong growth of agents is: first, the performance of the starters is not goodVulgarity boosts the morale of the long boots and putter team; second, the company’s business development is more flexible when the business indicators are completed better; third, the company moderately expands its expenses, the first three quarters of fees and commission expensesIncreased by 30%, per capita income was 4513 yuan (calculated caliber, average manpower is the scale at the Q3 point in time and the scale at the initial point in time, the same below), increased by 27%; (2) in terms of quality, the average effective labor force increased by +27.

4%, the average monthly sales of specific protection products manpower up to +49.

2%, all showed a clear improvement trend.

In addition, the average manpower of the company increased by 2.

31%, and an increase of 20 compared to the same period of NBV.
4%, can push the company’s per capita NBV significantly increased.
Investment suggestion: We have listed China Life as the first bidder, and the three quarterly results have exceeded overall expectations. Performance growth, new business value growth, team size and quality have clearly exceeded market expectations and peer data, and our research findings are not pure.Reason for base.

At the same time, according to the current arrangement and progress of the company’s start-up pre-sale, we expect that the start-up will still achieve two digital growth in 2020, again exceeding market expectations, and at the same time, it is expected to continue to the high-speed growth trend in 2019, step by step to verify the transformation of China LifeThe determination and the continuity of performance have restored China Life’s former glory.

Considering that the company’s debt-side business structure still has room for significant improvement, the future value rate growth space will be the highest in the industry and the core driving force for the company’s value growth.

The company’s management, fundamentals (debt, assets, value), the expected difference is very big, and the current company follows the corresponding 2020 return (20E EVPS is 39.

17 yuan a year + 18%) only 0.

79 times, the target is estimated to be 1 times, and the target price is 39.

2 yuan, 27% space.

Risk reminder: The company’s gradual transformation exceeds expectations, the transformation intensity exceeds expectations, and the increase in the value rate is less than expected; in the 2020, the debt end of the industry will intensify, and then the new orders will grow weak and the manpower will increase.The market has dropped significantly

Pien Tze Huang (600436): Expenses affect current profit

Pien Tze Huang (600436): Expenses affect current profit

The company released three quarterly reports for 19 years. Revenue, net profit attributable to mothers and net profit attributable to non-mothers were 43 respectively.

400 million, 11.

100 million yuan and 11.

0 ppm, + 21%, + 21% and + 22% per year, respectively, and the performance basically meets our expectations for the three quarterly reports.

Q3 single quarter profit growth rate is not high mainly due to the increase in expenses, but the Pianzai 19 series in Q1-3 revenue growth rate returned to more than 20% and gross margin rebounded for the first time in two years, indicating that future performance can still be driven, Maintain “Highly Recommended-A” rating.

Q3 Pien Tze Huang’s series of high-income revenue growth on a low base, gross margin rebounded for the first time in two years.

We estimate the income of Pianzai series in 19Q35.

USD 9.6 billion, + 44% a year, mainly due to Q3 base score (+ 14% MoM); gross profit margin was 81.

36%, an increase of 0 from the previous month.

44 single, gross profit margin rebounded for the first time in two years, we estimate that it was mainly caused by the decline in prices of raw materials such as musk.

Q3 single quarter expense increase, affecting profit 南京夜生活网 growth.

The parent company’s Q3 revenue and main business profit (total revenue-total cost) increased by 40% and + 35%, respectively. We estimate that two reasons lead to faster profit growth than revenue growth: 1, the parent company’s gross profit margin 65.

35%, down 2 every year.

66 digits. Due to the increase in gross profit margin of the Pien Tze Huang series, we estimate that the gross profit margin of generic medicines has decreased.

2. The selling expenses and R & D expenses of the parent company increased by + 70% and + 110%, respectively. The company’s investment in terminal marketing and clinical development of Pien Tze Huang is conducive to sales of subsequent products.

The increase in daily chemical sales expenses accounted for the bulk.

Consolidated statement Q3 single-quarter revenue, net profit attributable to mothers and net profit attributable to non-mothers are + 22%, + 20%, and + 19%, respectively.53% and + 91%.

The increase in research and development expenses was mainly due to the contribution of the parent company, but the sales expenses of the parent company Q3 only increased by 9.89 million each time, which was +40.93 million above the consolidated statement.

Excluding the parent company’s sales expenses, the consolidated statement sales expenses exceeded + 50%. We estimate that the marketing expenses for cosmetics and toothpaste terminals have increased significantly.

The daily growth rate of daily necessities Q3 increased month-on-month.

Daily necessities Q3 income 1.

4.7 billion, previously + 21%, an increase from 16% in the previous quarter.

We estimate that Q2 has slightly adjusted after Q1’s growth, and Q3’s release has increased, indicating that terminal sales are better, and cosmetics are expected to continue the growth trend of 18-year performance growth.

In terms of business in 19Q1-3, industrial income increased by +18.

100 million, previously +22.

59%; business income 20.

700 million, +18 a year.

43%; income from daily necessities and cosmetics4.

50 billion, previously +33.


Maintain “Highly Recommended-A” rating.

We expect the company’s attributable net profit growth rate to be 25% / 23% / 22% in 2019-2021, corresponding to an EPS of 2.



56 yuan, the current market value corresponding to 19 years pe estimated about 43x, maintaining the “strongly recommended -A” level.

Risk reminder: The continuous growth of product gross profit margin affects profitability, product sales fall short of expectations, quality, and operating risks.

Baosteel (600019) Interim Report Performance Review: Persist in Building the Right Leader and Focus on BMW Spillover Restructuring Spillover Effect

Baosteel (600019) Interim Report Performance Review: Persist in Building the Right Leader and Focus on BMW Spillover Restructuring Spillover Effect

Event: The company released 2019 H1 results and reported that the combined company achieved total operating income of 1408.

7.6 billion, down 5 every year.

16%, achieving net profit attributable to shareholders of listed companies.

87 trillion, down 38 a year.


The profitability of Zhanjiang Base is on par with that of Baoshan Headquarters. “Rebuilding a Baosteel” continues to improve the supply capacity of leading high-end products.

According to the data disclosed by the Interim Report, we calculated that the company’s four major production bases, Zhongshan, Qingshan, Dongshan, and Meishan, respectively, achieved net profit of 20%.

700 million, 5.

700 million, 10 billion, 2.

900 million (40 in the same period last year.

4 billion, 8.

6 billion, 22.

3 billion, 15.

600 million), based on the annual production and sales of 1700, 1500, 850, 750 millimeter waves, the corresponding net profit per ton of steel is 243 yuan, 75 yuan, 235 yuan, 75 yuan.

From the above data, we can see that Zhanjiang’s profitability continues to align with the Baoshan headquarters, in line with consistent expectations. Zhanjiang’s product structure is constantly high-end, replacing Zhanjiang’s production costs should be lower than the Baoshan headquarters; Qingshan base shows performanceThe improvement in performance should be related to the gradual improvement of the cost reduction effect of advancement. There is room for improvement in the profitability of the headquarters of Qingshan, Meishan and Baoshan.

The construction of Zhanjiang No. 3 blast furnace system is advancing steadily. The hot-rolling project started on May 9, the cold-rolling project started on June 11, and the sintering project started on June 17. The expected production time is July 2021, when Zhanjiang will supplement the production capacity by 400The total annual output of pounds of molten iron will reach 1225 inches, and the scale and profitability will be close to Baoshan headquarters, achieving the goal of “rebuilding a Baosteel”. At the same time, the company’s supply capacity of high-end products such as automotive plates, appliance steel and electrical steel in South China will continueEnhancement has become an important performance growth point for the company in the next three years.

Leading steel companies that continue to reduce costs to create indicators will not change the nature of “cash cows” when the cycle goes down.

In 2018, the company set a cost reduction target of 10 billion for the next three years and challenged 13 billion.

The report cut the company’s cost reductions in the first half of the year31.

500 million, exceeding the annual target.

According to the data disclosed, the company’s operating cost per ton of steel in 2019H1 is 5,365.

9 yuan, down 62 from the same period last year.

7 yuan, to achieve such a result is the 2019 H1 iron ore Platts index exceeds 30.

8%, coal and coke prices remained high during the same period; during the period of 2019H1 ton steel, the cost was 378.

3 yuan, down 30 from the same period last year.

2 yuan.

At present, the company’s production cost per ton of steel and period costs are still higher than the same industry level, but the difference with the industry level is narrowing. The gross profit margin is at an average level among similar products.

By continuing to reduce costs throughout the entire process of Qingshan, Baoshan and Meishan, the company is expected to regain its comparative advantage in profitability, which can not only support the company’s operating performance, but also greatly improve the company’s viability during the downward cycle.

Despite this year’s performance growth, the company’s operating cash flow is still abundant, with a net increase in cash and cash equivalents in the first half of 201911.

6 trillion, of which net cash flow from operating activities is 94.

4 ‰; the company’s financial expenses decreased by 9 compared with the same period last year.


Baowu Group will reorganize Maanshan Iron and Steel Group, and Baowu will further increase its market share in high-end products such as automotive panels, home appliance steel and electrical steel.

In June, Maanshan Iron and Steel announced that China Baowu Iron and Steel Group implemented a strategic reorganization of Maanshan Iron and Steel Group, and Anhui Provincial SASAC transferred 51% of Maanshan Iron and Steel Group to China Baowu for free.

Through this reorganization, China Baowu will directly hold 51% equity of Maanshan Iron and Steel Group and indirectly become the controlling shareholder of Maanshan Iron and Steel.

Maanshan Iron and Steel Co., Ltd. is a large-scale iron and steel joint venture in China and an important iron and steel production base. It has an annual output of 950 tons of sheet steel, of which about 240 is automotive steel. The output of automotive steel has been increasing year by year., Newly opened the market of two major automotive brands, Changan and Dongfeng, and the gap between the top level in the industry has narrowed. Anhui, as a home appliance production base, has provided a good downstream market for the development of home appliance panels by Maanshan Iron & Steel.The output accounted for 39%, 21%, and 27% of the country, respectively, and the proportion was relatively high. The annual output of home appliance steel by Maanshan Iron & Steel Co., Ltd. reached 180 tons, accounting for about 15% of the country’s total.50-60 ounces.

After Baowu reorganizes the Maanshan Iron and Steel Group, the annual production capacity of Baowu Department in automotive steel, home appliance steel and electrical steel will reach 1,500 tons, 1,000 tons, 450 tons, respectively.The ability to market risks will be enhanced, and the spillover effect of the reorganization will promote the improvement of the performance of listed companies in Baowu Department.

The gross profit margin of cold-rolled products hit a new low since listing, and spillover from restructuring effects will help bottom out.In the first half of the year, the country ‘s crude steel output increased by nearly 10% each year, and demand growth mainly revolved around the construction industry. As the company ‘s main downstream passenger car market output, sales fell by 13 respectively.

7%, 12.


In the first half of the year, the China Steel Association’s steel price composite index was 109.

5, down 4 each year.

6%, while the plate price index fell by 6.


The company’s comprehensive gross profit margin for steel manufacturing units has been decreasing year by year5.

4 units, of which the gross profit margin of cold rolled and hot rolled products are 11 respectively.

5%, 10.

4%, a decrease of 4.


The gross profit margin of 1 unit, especially for cold-rolled products, has been lower than its historical low in 2015.

We believe that in the second half of the year when the base number reached a certain number in the same period last year, the production and sales of cars will gradually narrow down every other period of time.The demand for auto plates will gradually improve, and at the same time, the profitability of cold-rolled products will promote bottoming out due to the spillover effect of BMW’s restructuring.

In addition, as the capital expenditure for exploration and development of the “three barrels of oil” maintained rapid growth, the demand for steel pipe products continued to improve, and the company ‘s steel pipe product gross profit margin increased against the trend. The company ‘s steel pipe product reported a gross profit margin of 12.

9%, an increase of 0 compared with the same period last year.

Five averages, close to the best level in history in 2009.

The prices of key products increased in the second quarter, and profitability in the second half of the year will remain stable.

In terms of quarters, the company realized net profit attributable to mothers in the second quarter34.

61 ppm, an increase of 7 from the previous quarter.

3.5 billion US dollars, initially in the second quarter,四川耍耍网 the ex-factory prices of major products have been increased. According to the official product price adjustment information released by Baosteel, we have summarized the hot rolling, ordinary cold-dip galvanizing, galvanizing, non-oriented silicon steel, and oriented silicon steel for 6 months.Compared with the previous 3 months, the prices have increased by 300, 300, 350, 300, 300 and 200?
700 yuan / ton.

At present, the ex-factory prices of the company’s main products in the third quarter have been announced. According to statistics, the September prices of hot-rolled, cold-rolled, hot-dip galvanized, electro-galvanized, non-oriented silicon steel, and oriented silicon steel have increased by 50 from the previous month.250, 250, 250, 150, 200 yuan / ton.

In terms of raw material prices, the average price index of 62% iron ore CFR (Qingdao Port) was US $ 82/104/109 in the first quarter, the second quarter and July-August. The increase in the cost of iron ore will be reflected in the third quarter.To a certain extent, it has hedged the positive impact brought by the company’s increase in product prices. At the same time, iron ore suppliers such as Vale will increase their shipments in the second half of the year to break through the trend of iron ore prices.

Profit forecast and investment grade: We expect the company to achieve operating income of 3005 from 2019 to 2021.

1 ppm, 2899.

71 ppm and 2966.

2.5 billion; net profit attributable to mothers is 125.

9 billion, 142.

8.6 billion, 168.

2.4 billion (earnings 175.

97, 191.

42 and 203.

94 ppm, lowered mainly due to higher costs caused by rising iron ore prices and lower than expected car plate demand; EPS is 0 respectively.

57 yuan, 0.

64 yuan and 0.

76 yuan, the corresponding PE is 10.

42X, 9.

18X and 7.
80X, maintain “highly recommended” level.

Risk warnings: 1. The prices of upstream raw materials have risen sharply; 2. The downstream demand has exceeded expectations.

McGmitter (002851): Continued High Growth Performance, Gross Margin and Expense Ratio Continue to Improve

McGmitter (002851): Continued High Growth Performance, Gross Margin and Expense Ratio Continue to Improve
Event: The company released the third quarter report of 019, and achieved revenue of 26 in the first three quarters.USD 5.2 billion, an annual increase of 64.67%, net profit attributable to mother is 2.760,000 yuan, an increase of 125 in ten years.1%.Among them, Q3 achieved revenue of 9.92 ppm, an increase of 71 in ten years.08%, net profit attributable to mother 1.14 ppm, an increase of 99 in ten years.02%.  Performance has grown rapidly, and gross profit margin has improved quarter by quarter.The company’s development continues a good trend, and the construction of various platforms is steadily advancing as planned. New energy vehicles, smart bathrooms, smart welding machines, inverter appliances, and flat panel displays continue to grow rapidly.Among them, the new energy vehicle business gradually increased by 215% over the same period of the previous year, and the major customer BAIC New Energy had sales exceeding 9 in the first nine months.8 vehicles, a gradual increase of 21%, of which the EU series won five consecutive championships.Under the compensation decline, the company responded to the industry’s cost reduction pressure and transformation through product module integration, optimization and upgrading, and the company has successfully developed customers of other OEMs such as Dongfeng, Geely, etc. to promote the full enjoyment of the new energy vehicle dividend period.In terms of industrial power, the company has accumulated for 无锡桑拿网 many years. It has overseas high-quality customers such as Ericsson and Siemens. It is expected to grasp the 5G boom cycle. With the application of LED, small pitch and other technologies, commercial displays maintain a high boom.The intelligent control of smart home appliances grew steadily, and the inverter controller products developed smoothly in overseas markets. In the first half of the year, due to the concentrated expansion of Zhimi products in the same period last year, the growth rate improved, but the medium and long-term growth trend remains unchanged.Industrial automation products are estimated to be affected by the macro environment. The market demand for product lines such as inverters and PLCs is under pressure, but the company’s smart welding machine business has obvious advantages.Currently, the manufacturing PMI for September is 49.8. Marginal recovery, although generally lower than the line of prosperity and decline, but the new kinetic energy represented by equipment manufacturing and high-tech industries maintained a steady growth trend.The company’s overall gross profit margin dropped slightly to 25%, which is still lower than the same period of last year. It was mainly affected by the product structure such as the increase in the proportion of electric control, but the monthly gross profit margin of Q3 was 25.27%, which has been increased quarter-on-quarter quarter-on-quarter, and the standardized design and supply chain advantages under the platform model have appeared.In addition, the company’s operating cash flow has improved significantly, receivables have a good turnover, and a high-quality customer structure guarantees the quality of receivables.  Multi-product development has strong anti-risk capabilities, and the “platform + team” is gradually getting better.The company’s complete core technology platform has completed a series of product layouts in the field of smart home appliances and industry through technology cross-application and expansion, focusing on the higher areas of technology doors in emerging industries and traditional industries, and constantly creating new developments for the companyOpportunities have the potential to resist risks and the ability to cross cycles.The company has completed the acquisition of minority shareholders’ equity in the three subsidiaries of Jardine Sanitary, Shenzhen Driven, and Shenzhen Control. The three subsidiaries are important sources of profit contribution, and have committed to complete net profit in 18-20 years1.39/1.83/2.3.5 billion, currently 19 years is expected to be completed smoothly, of which Shenzhen-driven or exceeded expectations.Since its listing, it has invested in smart oil extraction equipment, electric shockers and other businesses. It is an extended cross-application of power electronics technology. Among them, intelligent oil production equipment is gradually being supplied in batches, and the prospects are promising.  R & D funding has remained high, and costs have continued to improve during the period.Total reported, expense ratio 14 during sales period.22% (5 per year reduction.25pct), of which the overhead rate is 10.39% (reduction of 3 pct per year), sales expense ratio is 3.69% (1 reduction per year.36 pct).Innovation, R & D investment 2.26 ppm, an increase of 23 in ten years.72%, accounting for 8% of revenue.52%.The company continues to build and improve the R & D layout. In the future, it will gradually form a global R & D center with Changsha as the core. The leading-edge technology is in the United States, Germany, Sweden, and the progressive technology R & D strategy system in Changsha and the Mainland Research Institute.Based on the core technology platform built for many years, the company supports expanded product development capabilities, continuously extends to new technology areas, gradually integrates product layouts, and lays an alternative technical foundation for cross-domain business models.  Investment Advice.The “business unit + resource platform” combined operation model has gradually become one of the company’s core driving forces. It is the driving force for the company’s business to continue to grow and the new business continues to grow.”The goal.After years of industrial layout and R & D expansion, many products are in a higher market trend period, and the company’s net profit forecast for 2019-2021 is raised3.6.1 billion, 4.75 billion, 5.9.6 billion, corresponding to PE of 24x, 18x, 14x, maintaining the “Buy” level.  Risk Warning: Macroeconomic Continues to Decline, New Product R & D Exceeds Expectations

Sega Technology (002796) 2019 Interim Report Review: 5G Business Initially Announces Scale for Active Dielectric Waveguide

Sega Technology (002796) 2019 Interim Report Review: 5G Business Initially Announces Scale for Active Dielectric Waveguide

I. Event Overview The company released its 2019 Interim Report: Realizing Revenue9.

09 million yuan, an increase of 66 in ten years.

87%; net profit attributable to mother 6043.

740 thousand, an annual increase of 350.


Second, analysis and judgment of the rapid growth of communication business, the proportion of 5G continues to increase in the first half of 2019. The company continued to go hand in hand with precision box system business and mobile communication equipment business, and achieved rapid growth in revenue and profits.

The company’s traditional business elevator car system revenue2.

33 ppm, a 10-year increase2.


The company’s mobile communication equipment business income 6.

08,000 yuan, of which metal filter income 2.

590,000 yuan, an increase of 141 in ten years.

65%; ceramic filter 3.09 million yuan; antenna income 2.

86 ppm, a 141-year increase.


The increasing range of mobile communication equipment-related products is mainly due to the in-depth coverage of 4G networks and the rapid acceleration of 5G base station construction by internal and Japanese operators, leading to a substantial increase in demand for the company’s mobile communication equipment products.

Reporting the average, the company’s overall gross margin level reached 20.

20%, mainly due to the increasing proportion of 5G business revenue.

With the successful introduction of Ericsson, the company ‘s business in the United States has progressed smoothly. The company ‘s subsidiary, Bofat, is a core supplier of filters and antennas for ZTE, a global core equipment supplier. With the acceleration of 5G licensing and operator 5G investment, 5G in the second quarter has significantly improved.

At the same time, through the early accumulation, Polyfax successfully passed the Ericsson test and officially became an Ericsson supplier. It is expected that revenue and profits will be generated in the second half of the year, and customer resources will be further enriched.

In addition, the company established Sun Company Dengyo USA in the United States to actively expand the North American antenna market and form a layout.

R & D spending increased, and phase progress was made in dielectric filters. In the first half of 2019, the company’s R & D investment was 3,382.

730,000 yuan, an increase of 61 a year.

09%, which is mainly used for the research and development of existing 4G radio frequency devices and antennas, and has established the “Suzhou 5G Communication Equipment Engineering Technology Research and Development Center” to actively carry out 5G product research and development.

In order to improve the category of filter products, ceramic waveguide filter products were laid out in advance. The report was approved. The company acquired Jet Frequency Electronics through the transfer of equity to prepare for market opportunities in the future construction of 5G base stations.

Third, the investment proposal is expected to the company in 2019?
The EPS in 2021 will be 1.

45, 2.

88 and 3.

52 yuan, corresponding to PE is 30 times, 15 times and 12 times.

The company’s PE in the past three years is at least 96 and 37 times lower.

Maintain the “Recommended” level.

Fourth, risk warning: 5G development is less than expected; dielectric filter expansion is less than expected.

CPIC (601601): Proposed GDR Internationalization Goes Further

CPIC (601601): Proposed GDR Internationalization Goes Further

On September 23, 2019, the board of directors approved the company’s plan to issue GDR and list on the London Stock Exchange.

To be specific, 1) Issuance scale: the A-shares of the supplementary basic securities represented by the GDR issued this time shall not exceed 6.

2.9 billion shares (including over-allotment), not more than 10% of the company’s A shares before the issuance.

杭州桑拿网 2) Pricing method: Not lower than the company’s latest audited statutory net assets (termination 19H is 17).

93 yuan), if calculated based on 19H net assets, it is estimated that the amount of proceeds that can be raised in this issuance is 110 trillion; if calculated based on the closing average price of A / H shares on that day, the amount raised is expected to exceed 20 billion yuan.

3) Conversion with A shares: The conversion rate takes into account internal regulatory requirements, market conditions, etc .; the conversion limitation period is 120 days after the date of listing.

4) Time of issuance: The company will temporarily hold an extraordinary shareholders meeting and complete the issuance when the resolution of the shareholders meeting becomes effective (that is, 12 months).

During the period, it 南京桑拿网 needs to be approved by Banking Regulatory Commission + Securities Regulatory Commission, and then approved by the London Stock Exchange.

Based on Huatai Securities’ experience in issuing GDRs, it is expected to be completed in about half a year.

5) Issuance purpose: To steadily advance the company’s international layout and replenish capital.

In the end, the GDR issued by the London Stock Exchange could date overseas investors to improve corporate governance.

The initial H-share issuance and appointment of the Singapore Government Investment Consulting Corporation (GIC) entered the board of directors. The current GDR issuance to date the war investment (or enter the board of directors), further financial opening up, and improve corporate governance.

At the same time, it is beneficial for the company to promote its international layout.

Overseas financing to open international financial markets, expand overseas business, explore new sources of growth on the debt side, and diversify the layout.

6) Issuance impact: It is good for medium and long-term business development, and short-term estimates tend to be stable.

① In the medium and long term, this issuance of the GDR has been formulated to date overseas shareholders, improve the governance structure, and enhance CPIC’s operating capabilities.

At the same time, as the first insurance company to issue GDRs to raise overseas funds, it will set up overseas markets in advance, date overseas experiences, and achieve diversified business growth.

② In the short term, with the advancement of the start of the year, the interest rate expectations of the investment side have stabilized, and it is estimated that the switch will return to a low point at the end, and the insurance industry will usher in a repair of earnings.

The issuance of GDR will dilute the current shareholders’ profits and net assets, but as the market repairs and the construction of long-term expansion, it will also stabilize in the short-term.

With reference to Huatai’s issuance of GDR (the proportion of shares issued is also 10%), it benefited from the capital market environment at the end of the year, from the date of the first announcement (2018.


23) To the stage high (2019.


25) The increase is 44%, and the current increase is still maintained at 15%.

Life insurance: With optimized business structure and sound business strategy, NBV and EV are expected to grow steadily in the long run.

As of 19H, the life insurance EV was 2785 trillion, + 8% compared with the end of the previous year. The negative growth of NBVM and new orders resulted in NBV of only 14.9 billion (YoY-8%), but the decline was significantly narrowed compared to 18% of 18H1.

1) The short-term shocks caused by the high level of NBVM do not mean that the company restarts the sales of low-value products, but the inevitable result of adjustment and adjustment of sales strategies.

With an excellent business structure and a sound business strategy, NBVM has a high probability of staying high and does not need to be over-allocated.

2) According to calculations, as long as 19H2 new orders achieve 9% positive growth, the new orders can be changed to be flat; and as long as 13% positive growth is achieved, NBV can be flat.

In the second half of the year, the pressure on new order growth was eased, and short-term storage + protection were provided, and various products actively responded to the base pressure to promote the maintenance of NBV stability.

Property insurance: non-vehicles maintained 30% + high growth, reduced fees and controlled compensation, and underwriting profits increased against the trend.

19H1 property insurance premiums were 682% (YoY + 13%), underwriting profit was 7% (YoY + 12%), and the decline in the expense ratio helped the comprehensive cost ratio of 98.

6% (YoY-0.


With the deepening of commercial vehicle fares, the auto insurance market concentration will continue to increase. Leading insurance companies will continue to achieve excess underwriting profits through pricing, fixed loss and channel advantages.

The impact of downward interest rate risk is limited, and there is no risk of interest rate differential losses.

The long-term interest rate fluctuated downward (currently about 3%), and the equity market fluctuated. It is assumed that 20% of the fixed-income assets will be allocated due in 2019, and the bond yield will be 2.

8%, non-standard yield 5.5%; stock + stock-based yield of 5%, CPIC’s comprehensive investment yield in 2019 will still reach 5.

3%, which is much higher than the compensation cost (less than 3%), and there will be no spread loss.

Investment suggestion: Optimize the company’s long-term development potential, and issue a GDR to help further the international layout.

In the long run, the company’s life insurance business has an early transformation and excellent structure, helping NBV and EV increase steadily. The scale effect and alternative fixed-price pricing advantages of the property insurance business will continue to increase market share and achieve excess underwriting profits.

The allocation of large-scale assets on the investment side has remained stable, with a long-term reduction (6 years +), and the impact of re-allocated assets due each year is limited. From the perspective of prolonged cycles, the return on investment is relatively stable.

The board of directors issues GDR through the company, predicts to advance the international layout, and replenish capital; coupled with the company’s long-term development potential, the current corresponding P / EV of the company in 2019-2021 is 0.

87x, 0.

77x, 0.

69x, combined with its high dividend characteristics, has continued to allocate value in the presence of increasing external uncertainty, maintaining a highly recommended level.

Risk warning: long-term interest rate growth rate, equity market growth rate, investment income increase rate; premium growth is less than expected.