Wannianqing (000789) Annual Report Comments: Demolition Fees Cause Lower Profits than Expected
Event: Wan Nianqing released the 2018 annual report.
In 2018, the company achieved operating income of 102.
100 million, an annual increase of 43.
9%; net profit attributable to mother 11.
40,000 yuan, an increase of 145 in ten years.
9%; non-net profit attributable to mother 12.
20,000 yuan, an increase of 148 in ten years.
In the fourth quarter, the company achieved revenue of 31.
9 ‰, an increase of 28 per year.
7%, net profit 2.
66 ppm, an increase of 16 per year.
The performance dragged down by resettlement fees was slightly lower than expected, and the cement business performed strongly.
Due to the demolition agreement with the Ruijin government, the company paid the resettlement fee for environmental protection in 20181.
72 ppm is a preliminary result that is lower than expected. If this expense is not considered, the company’s net profit attributable to the parent amounts to 13.
1 trillion, basically in line with our expectations.
The company’s cement business performed strongly in 2018, with a combined cement clinker sales of at least 2,745, an increase of 4 per year.
At the same time, according to our calculations, the company’s average export price of cement clinker in 2018 was 309 yuan / ton, surpassing the increase of 29.
The gross profit per ton is 6%, 113 yuan / ton, an increase of 66%. The sales volume of cement clinker in the fourth quarter increased by 774, an annual increase of 10%, the gross profit per ton was 122 yuan / ton, surpassing the increase of 25 yuan / ton, and the monthly increase was 13 yuan / ton.
Good infrastructure in Jiangxi region, real estate demand (in 2018, Jiangxi Province highway and waterway investment exceeded 23%.
6%, real estate investment rose 8 per year.
0%) and the good implementation of collaborative production restriction in East China are the reasons for the company’s strong performance in cement business in 2018.
At the same time, due to the company’s deepening of environmental protection cooperation with Jiangxi Copper, the company’s 2018 ton cement three waste tax rebate increased by 35 each year.
4% to 4.
RMB 6 / ton; the business of concrete and new bricks grew steadily.
In 2018, the company achieved 5.74 million cubic meters of concrete sales, an increase of 21 each year.
7%, square gross profit of 79 yuan, an increase of 15 yuan each year; new brick sales of 5.
5.6 billion standard fast, an increase of 28 in ten years.
3%, and as the production gradually scales up, the gross profit of new bricks per standard block is increased by 12.
7 times to 0.
07 yuan / block.
The steady growth of the concrete and new brick business is also reflected in the good infrastructure real estate demand in Jiangxi in 2018; the three rates have fallen and the balance sheet is strong.
In 2018, the company’s sales management expense ratio decreased by 1 every year.
At the same time, due to the decrease in losses, the company’s financial costs increased by at least 52 million yuan, reflecting the improvement of the company’s operating efficiency.
At the same time at the end of 2018, the company’s return on assets fell by 5.
3 up to 39.
4%, the balance sheet continued to remain strong; after the completion of capacity expansion, the company’s ton cost has room to fall.
In 2019, the company will promote Wannian Cement Plant and Dean Wannian Youth Replacement Project, and we believe that due to the scale effect of the new line, the company’s ton cost can be further reduced after the completion of the capacity replacement.
At the same time as the results were released, the company also announced that the raised convertible debt to be issued does not exceed US $ 1 billion for the above-mentioned capacity replacement projects; 2019H1 is expected to remain strong.
Although the amount of cement and the sales volume of Jiangxi region have been affected by the change of rainy weather after the start of 2019, the replacement volume in Jiangxi region has recovered significantly after the weather resumed, the inventory has dropped significantly, and manufacturers’ price increases are expected to increase 西安耍耍网 sharply.It will remain strong: 1) This year, Jiangxi will focus on the construction of key projects such as the Changjiu Passenger Dedicated Line and the Changji-Jiangxi Railway, and infrastructure demand is expected to maintain strong growth; 2) No new capacity is expected in Jiangxi in 2019;The market’s dependence on the monetization of shed reforms exceeds the national average, and the inventory of major cities is still not high. It is expected that real estate demand will not change in 2019.
We temporarily maintain our profit forecast unchanged, and we will update it further when the company further discloses more operating information.
The company’s net profit is expected to be 14 in 2019/2020.
900 million yuan, EPS is 2 respectively.
28 and 2.
43 yuan, maintaining a target price of 天津夜网 17.
1 yuan and “Buy” rating.
Risk warning: demand exceeds expectations, capacity increases exceed expectations, and raw fuel prices continue to grow faster than expected.