Huaxin Cement (600801): Diversified Transformation Achieves Results, 19 Years Expected to Meet Steady Increase in Price
Event: On March 30, 2019, the company released the 2018 annual report, and the company achieved operating income of 274 in the reporting period.
6.6 billion, an annual increase of 31.
48%; net profit attributable to shareholders of the listed company is 51.
81 trillion, an increase of 149 over the same period last year.
39%; budget benefit 3.
46 yuan, the company plans to pay dividends for every 10 shares11.
5 yuan and increased 4 shares.
Opinion: The cement sales volume is steadily increasing, and the aggregate market continues to expand.In 2018, the company sold cement and commodity clinker 7072 indicators, an annual growth rate of 3%; the sales of 1,450 aggregates replaced, an increase of 26%; the volume of environmental protection business disposal reached 214 microns, a year-on-year increase.18%.
In the second half of the year, cement market demand increased and cement sales increased. At the same time, affected by supply-side structural reforms, aggregate sales also increased significantly.
In terms of business, the cement, concrete, and aggregate businesses achieved revenue of 238 in 18 years.
5 and 8.
300 million, an increase of 28 each year.
81% and 61.
11%, the aggregate market accelerated.
By quarter, Q4 achieved revenue of 84.
30,000 yuan, an annual increase of 28.
8%, achieving net profit attributable to mother 17.
700 million, an annual increase of 72.
20%, the single quarter profit hits another record high.
Comprehensive gross profit margin continued to increase to 39.
65%, the improvement of raw material procurement measures was attributed to the significant increase in the comprehensive sales price of products, the comprehensive gross profit margin of products in the reporting period was 39.
65%, an increase of 10 over the same period last year.
1 average, the largest increase over the years; net sales margin 20.
77%, 10 per year.
In 2018, the company’s tonnage of cement and clinker was 337.
7 yuan, the cost of 201 tons.
0 yuan, gross profit 136 tons.
7 yuan, 68 each year.
7 and 57.
In addition to rising prices, effective cost control is an important reason for the improvement in gross profit margin. Within 18 years, the company has promoted the reform of “uniform purchase + online purchase”, centralized the purchase of raw materials and reduced production costs.
Accelerating the pace of transformation, the layout of diversified business companies completed the acquisition of 100% equity of Chongqing Lafarge Shui On Tower Cement Co., Ltd., and the Tibet Shannan and Xigaze projects were completed and put into operation.
In terms of aggregate business, Tibet, Yunnan and Yunnan Honghe projects have been completed and put into operation. Sichuan Qu County, Chenzhou, Hunan, Changyang, Hubei, Jinghong and Lincang, Yunnan, have a total annual production capacity of 1,300 aggregate projects.
In terms of environmental protection business, the environmental protection projects of Wuhan Changshankou and Shiyan domestic waste pre-treatment were transferred and operated during the year; the industrial hazardous waste business achieved a breakthrough, and until now the disposal capacity of industrial hazardous waste environmental impact assessment approval has reached 21 years.In terms of new materials business, the new year’s production is 1.
2 billion comprehensive environmental protection wall materials project was completed and put into operation; the company’s first annual output of 5 advanced, automated leak-proof and energy-saving special mortar factories was put into operation; innovative products such as ultra-high-strength concrete made breakthroughs in overseas sales and successfully replaced Hong Kong-Zhuhai-MacaoBridges and other projects.
Benefiting from the shortcomings of western infrastructure construction, the demand 杭州夜网论坛 side in 19 years is expected to increase to the end of 2018.The company has 9 provinces and cities in Hubei, Hunan, Yunnan, Sichuan, Guizhou, Guangdong, Henan, Chongqing, Tibet and overseas Tajikistan. Cambodia has recovered nearly 200A total of nearly 100 million tons / year of cement production capacity, 23.3 million cubic meters / year of commercial concrete, 2,500 tons / year of aggregate, and comprehensive environmental protection wall materials1.
2 billion pieces / year, the total production capacity of cement equipment is 5 tons / year, mortar is 5 tons / year, cement packaging bags are 500 million pieces / year, and emissions disposal is 550 tons / year (including under construction).
The important direction of the infrastructure repairing the shortcomings is the transportation supplementing of the western region. As the Southwest cement leader, the company helps determine the benefits. We expect the company’s 19th year sales growth to improve on the basis of 3% in 18 years to promote re-buyingWe estimate that the company’s operating income will be 296 from 2019 to 2021.
0 billion, 312.
200 million, 325.
1 ppm, an increase of 7 each year.
1%; net profit attributable to mothers is 56.
200 million, 57.
700 million, 59.
700 million, an increase of 8 each year.
The EPS is expected to be 3 in 2019-2021.
75 yuan / share, 3.
85 yuan / share and 3.
99 yuan / share, corresponding PE is 6/6 / 6x.
The company’s dividend payout ratio reaches 30%, and the current dividend yield is about 4.
8%, we think that the demand side is likely to rise this year, prices are expected to remain high, and cement stocks have room to repair, renamed as “Buy” rating.
Risks suggest that the cement market needs to reduce risks; the risk of rising costs; and the risk of reducing new business development.