夜网

Zhongshun Jierou (002511): Earnings in Q3 revenue are beautiful, cost dividends continue to be released

01/04/2020

Zhongshun Jierou (002511): Earnings in Q3 revenue are beautiful, cost dividends continue to be released

Event: The company announced the third quarter report of 2019, and achieved operating income of 48 in the first three quarters.

20,000 yuan, an increase of 18 in ten years.

11%, net profit attributable to mother 4.

380,000 yuan, an increase of 39 in ten years.

96%; net profit after deducting non-profit increased 48 in ten years.

58%.

Comments: In the first and third quarters, competition intensified revenue growth. It is expected 广州桑拿 that the growth rate of Q4 will rebound in Q3, and operating income will increase by 10.

21%, mainly due to the decline in raw material prices this year, small and medium manufacturers in the tissue industry resumed production, some brands took the lead in reducing prices in the third quarter, and the short-term adjustment of e-commerce platforms.

We expect that through the implementation of the company’s fourth-quarter price strategy, e-commerce sales are on track, and the peak consumer season is approaching, and subsequent revenue growth is trying to pick up steadily.

As of the end of 2018, the company’s total production capacity is 66 tons. It is expected that in 19 years it will increase its production capacity to 10 locations in Hubei and 5 locations in Tangshan to provide guarantee for business development.

Due to the increase in the payment received and the decrease in payment for materials, the net operating cash flow in the first three quarters increased by 2571% each year; the increase in the stock of raw materials and wood pulp led to the continuous increase in the inventory balance.

twenty two%.

2. The performance was basically in line with expectations. The record high gross profit margin and net profit margin benefited from the decline in pulp prices. The adjustment of interest rate policies was favorable. The comprehensive gross profit margin in the first three quarters was 38.

29%, an increase of 3 per year.

01pct, Q3 single season gross margin hit a record high of 41.

37%, an increase of 8 per year.

19 points.

The product structure continued to be optimized, and the company’s high-end, high-margin products and non-roll paper categories increased the proportion. The company’s personal care product brand “Dorei Honey” was launched in June 2019. The Sichuan bamboo pulp and paper integration project was promoted in the third quarter,Improve the self-sufficiency rate of pulp and help the new product “Sun” to target the low-end market.

In terms of expenses, revenue can make Q3 single season sales, and the management + R & D expense ratios are increased by 2 respectively.

1, 3

17pct. It is expected that the company’s revenue growth rate will recover in the future, and the expense rate is expected to be basically stable; Q3 returns to its mother in a single quarter, and non-net profit after deduction increases by 44.

16%, 61.

59%, net interest rate continued to rise to 9.

89%.

3. Channel strengthening and superimposed product structure optimization, maintaining the “strongly recommended-A” rating as a domestic first-line brand of domestic paper. The company continues to develop online and offline channels, develop new products to lead the industry’s innovation, and the future scale growth trend is obvious.

At the same time, through continuous optimization of the product structure, easing cost pressures and improving operating efficiency, profitability is still improving.

Employees’ shareholdings have achieved consistent interests, recently completed the supplementary authorization of the incentive plan, deeply bound the core team’s interests, and multi-party incentives for team enthusiasm.

Expected 2019?
Net profit in 2021 will be 5.

7.3 billion, 7.

03 billion, 8.

500 million US dollars, an increase 深圳桑拿网 of 41%, 23% and 21% each year. At present, it is expected to correspond to a 19-year PE of 31x, and maintain the “strongly recommended-A” rating.

Risk reminder: continuous increase in pulp prices, economic growth leading to a substantial increase in demand for tissue paper