China Jushi (600176) Annual Report 2018 Review: Not afraid to temporarily disturb the advantages of fiberglass faucet will further highlight

China Jushi (600176) Annual Report 2018 Review: Not afraid to temporarily disturb the advantages of fiberglass faucet will further highlight

China Jushi (600176) Annual Report 2018 Review: Not afraid to temporarily disturb the advantages of fiberglass faucet will further highlight

The company’s performance growth in 2018 increased by 10.

4%, earnings per share are 0.

RMB 68 On January 12, 2018, the company realized operating income of 100.

3 trillion, the same increase of 16.

0%, net profit attributable to shareholders of listed companies23.

7 trillion, with an increase of 10.

4%, earnings per share are 0.

68 yuan; the company’s revenue in the fourth quarter alone was 24.

0 million yuan, an increase of 8.

6%, net profit attributable to shareholders of listed companies4.

600 million, down 22.

9%.

Profit distribution plan: 2 for every 10 shares.

25 yuan cash dividend (including tax).

The profitability of the company declined slightly, but the company still maintained a high level of reported gross profit margin45.

1%, a year down 17 in 0.

7 units; sales rate, management rate and financial rate are 3 respectively.

8%, 8.

2%, 3.

4%, change 0 every year.

1, -0.

1, -1.

5 averages, period rate 15.

5%, a year 17 down 1 year.

4 units.

The company’s comprehensive gross profit margin in the fourth quarter was 45.

2%, a year and 17 years down 2.

3 units; sales rate, management rate, and financial rate are 3.

0%, 12.

0%, 4.

8%, a ten-year change of -0.

4, 2.

5 and -0.

4 averages, period rate 19.

8%, an increase of 1 every 17 years.

7 units.

In 18 years, due to the increased production capacity of the industry, the price of glass fiber products has declined since the fourth quarter, which has improved the company’s gross profit margin, but the company’s profitability has remained at a high level, and the production and sales rate has continued to exceed 100%.

In addition, the company reported a total of US $ 100 million in bad debt losses that also affected performance. The demand for glass fiber is still in the growth stage. The leading advantages are obvious. The downstream market for glass fiber products is extensive, and the average annual growth rate of demand is GDP.

5-2 times, in the growth stage.

The production capacity of the world’s six largest glass fiber manufacturers, led by Boulder, accounts for more than 75%, and the production capacity of the first three domestic companies accounts for more than 70%.

Leading companies have significant advantages in product research and development, technology, production scale, production capacity layout, and cost control.

In the gradual overcapacity of the industry and the gradual process of pressure on the price of glass fiber, the difference between the leader and the follower will be further widened.

Profit forecast and investment advice The company’s “three places and five continents” layout has been advanced to effectively circumvent trade barriers and increase market share; the sales structure has been optimized, and the proportion of mid- to high-end products has continued to increase; the cost advantage has led the industry.

Due to the increase in production capacity and the commissioning of semi-annual production in the second half of the year, it may affect the price performance of glass fiber products, and the uncertainty of trade friction (tariffs) still exists. Therefore, the company’s EPS forecast for the year 19-20 杭州桑拿网 is reduced to zero.

74, 0.

80 yuan (0.

92, 1.

11 yuan), plus 21 years EPS 0.

89 yuan.

Short-term affected by the price disturbance caused by the rapid release of industrial supply, but long-term optimistic about the development prospects of global fiberglass leaders, maintaining target prices.

50 yuan corresponds to the company’s PE level of about 15 times in 19 years, maintaining the “Buy” rating.

Risk reminders: The rapid expansion of the industry’s production capacity causes the risk of falling glass fiber product prices; exchange rate changes leading to the risk of exchange losses; high trade barrier risks; European and American economic risk risks.