Jidong Cement (000401): Benefiting from Beijing, Tianjin and Hebei’s infrastructure development performance, rapid growth

Jidong Cement (000401): Benefiting from Beijing, Tianjin and Hebei’s infrastructure development performance, rapid growth

Event: The company released a semi-annual report: H1 in 2019 achieved 160 revenue.

7.8 billion, an annual increase of 25.

18%; net profit attributable to mother 14.

80 ppm, an increase of 60 in ten years.

82%; net profit after deduction to mother 14.

470,000 yuan, an annual increase of 194.

65%.

Corresponds to single-quarter revenue of 110.

70 ppm, an increase of 17 in ten years.

09%; net profit 北京桑拿洗浴保健 attributable to mother 14.

35 ppm, a decrease of 4 per year.

48%; net profit after deduction to mother 14.

48 ppm, an increase of 43 in ten years.

66%.

Opinion: Both the volume and price of cement clinker have risen, and profits have grown rapidly.

By quarter, the company achieved revenues of 50 in 19Q1 / Q2.

08/110.

7 billion, a 47-year growth of 47.

74% / 17.

09%.

19Q1 / Q2 achieved net profit attributable to mother 0, respectively.

45/14.

3.5 billion, an increase of 107 in ten years.

72% / -4.

48%, the acceleration of profit growth in the first quarter is very obvious.

In terms of products, cement / clinker / other achieved revenue of 126, respectively.

54/17.

01/17.

2.3 billion, an increase of 26 each year.

92% / 6.

34% / 35.

20%.

In the first half of the year, the company’s cement clinker sales reached 4,528 inches, an increase of 12.
.

83%.

19H1 cement clinker sales were 4.

53 billion tons, an increase of 12 in ten years.

83%, average price 355.
08 yuan / ton, a temporary increase of 17.
91%, both volume and price rose, driving the company’s revenue and profits to grow rapidly.

The gross profit margin improved significantly, and the expense ratio decreased significantly.

In terms of gross profit margin, the company’s gross profit margin in 19H1 was 37.

37%, an increase of 2 per year.

24pct.

Looking at the quarters, Q1 / Q2 gross margins were 33.

01% / 39.

34%.

By product, cement / clinker / other gross margins were 37.

96% / 35.

34% / 35.

08%, 0 each year.

18 points / 1.

89 points / 4.

52 points.

In terms of expense ratio: The company’s expense ratio continued to fall during the period of 19H1.

79 points to 19.

59%, the effect of cost control and efficiency improvement is obvious, and the cost rate is greatly reduced.

The sales / management / financial expense ratios are 3 respectively.

68% / 11.

91% / 3.

99%, with a change of 0 respectively.

37 points / -4.

79 points / -3.

38 points.

Earnings forecast and estimation: EPS are expected to be 2 in 19-21.

30, 2.

90, 3.

28 yuan, corresponding PE is 7X, 6X, 5X.

Give “Buy” rating.

Risk warning: raw material prices rise, infrastructure investment falls short of expectations