Weixing New Materials (002372) 2018 Annual Report Comments: Fourth-quarter sales acceleration may be better in 2019

Weixing New Materials (002372) 2018 Annual Report Comments: Fourth-quarter sales acceleration may be better in 2019

This report reads: The company announced its 18-year annual report, and delivered the perfect answer sheet in 2018 when the real estate downturn and the raw material prices increased significantly, maintaining the “overweight” rating.

Investment Highlights: Maintain “Overweight” rating.

Realized operating income of 45 in 2018.

7 billion, an annual increase of 17.

08%; net profit attributable to mother 9.

78 ppm, an increase of 19 in ten years.

12%; EPS 0.

75 yuan, in line with expectations.

We maintain EPS 0 for 2019-2020.

86, 0.

99 yuan, plus EPS 1 in 2021.

13 yuan, based on the average PE of comparable companies 28 times, raise the target price 佛山桑拿网 to 24.

08 (+3.

92) Yuan.

Sales are accelerating in the fourth quarter, and 2019 may be better.

2018Q4 realized revenue 16.

2 billion, an increase of 20.

72% (2017Q4-2018Q4 growth rate was 12 respectively.

83%, 20.

16%, 17.

45%, 10.

02%, 20.

72%), Q4 growth rate has doubled significantly from earlier Q3.

We believe that it has benefited from the simultaneous low base impact; entering the company’s 18-year development of large real estate business, concentrated revenue recognition in the fourth quarter.

The real estate investment and new construction data from January to February 2019 continued to exceed market expectations, while the credit end was gradually loosening, which is expected to drive the real estate industry chain product estimates and performance to rise.

The cost pressure period was perfect, and the profit margin maintained the highest level in history.

In 18 years, under the background of a sharp rise in crude oil prices, the company continued to deliver perfect answers, resulting in a gross profit margin of 46.

77%, flat for one year.

We believe that the international crude oil price has dropped significantly since November 2018, and the company’s gross profit margin and upward space in 2019.

The three fees are well controlled, and the 18-year fee rate has increased by 1.

25 good to 21.

25%, net interest rate remained at 21.

43% historical high.

“Engineering retail” is two-wheel drive, and is optimistic about cross-category business development.

The average sales growth of engineering business in 2018 exceeded 13%, of which real estate project sales growth exceeded 25%, achieving rapid development.

In essence, the company develops waterproof business, and the preliminary filter will gradually transition past the early introduction stage. We judge that it will become a new bright spot for the company’s profit growth.

Risk Warning: 北京spa会所 Macroeconomic Downturn, Raw Material Costs Increase