Weixing New Materials (002372) 2019 Third Quarterly Report Review: The pressure-bearing engineering end of the retail side has a rapid growth but a small base
On January 9, 2019, the company’s net profit attributable to mothers increased further5.
9%, earnings per share are 0.
44 yuan From January to September 2019, the company achieved operating income of 31.
2 trillion, with an increase of 5.
2%, net profit attributable to shareholders of listed companies6.
9 trillion, with an increase of 5.
9%, earnings per share are 0.
44 yuan; the company’s revenue in the third quarter alone was 10.
200 million yuan, down by 6.
1%, net profit attributable to shareholders of listed companies.
500 million, down 10.
Profitability declined, and operating efficiency slightly increased the company’s consolidated gross profit margin46.
8%, a decline of 0 per year.
5 units; sales rate, management rate and financial rate are 13 respectively.
7%, a ten-year change of -0.
3 averages, period rate 21.
1%, a decline of 0 per year.
The company’s comprehensive gross profit margin in the third quarter was 47.
7%, down by 1 each year.
8 units; sales rate, management rate and financial rate are 12.
1%, change 0 every year.
3 and -0.
9 averages, period rate 19.
6%, a decline of 0 per year.
The domestic plastic pipe industry is growing rapidly, the market environment is complex, and industry competition is intensifying. With the development strategy of “retail, engineering two-wheel drive”, the company accelerates the layout and structural adjustment of various business segments and accelerates the development of concentric circles.
In the third quarter alone, the company’s retail side was under further pressure. Although the engineering side had a fast growth rate but a small base, it was difficult to restore the impact of the retail side business transfer, which led to a decline in the revenue side growth rate. The prices of raw materials such as PPR and PVC remained basically stable during the yearThe profitability of engineering business is lower than that of retail business, and structural changes have led to a decline in profitability. Costs and expenses are better controlled. Increased revenue and income have brought down financial rates, and operating efficiency has increased slightly. Performance 杭州桑拿 has shown margins and performance has fallen short of market expectations.
Profit forecast and investment recommendations The growth rate of Weixing New Material’s owner industry is expected to result in a decline in revenue growth, while the engineering business continues to improve and develop but the base is too small. The adjustment of two-wheel drive still takes time, and the performance is less than market expectations.Reduce the company’s EPS to 0 in 2019-2021.
84 yuan (the original forecast was 0.
00 yuan), downgraded to “overweight” level.
Risk reminder: the total demand of the macroeconomic downward trend, the retail side continues to be under pressure, and the business development of the engineering side is less than expected; the rising crude oil prices cause the cost of raw materials to rise.