China National Petroleum Corporation (601857): Cost reduction and efficiency gains in exploration sector

China National Petroleum Corporation (601857): Cost reduction and efficiency gains in exploration sector

Event: PetroChina released the first quarter report of 2019, and the company achieved operating income of 5910 in the first quarter of 2019.

42 ppm, an increase of ten years8.

9%, achieving net profit attributable to shareholders of listed companies 102.

US $ 5.1 billion, an annual increase of 1%, and a basic income of 0.

056 yuan, an increase of 1% a year.

We maintain our investment rating of “Prudent Overweight”.

Oil and gas production increased, the company reduced costs and increased efficiency, the performance of the exploration and production segment improved, the average price of natural gas increased, and the performance of the natural gas and pipeline segment increased, helping the company’s performance increase.

PetroChina is the largest oil and gas producer in China, and its primary processing capacity and processing volume rank second in the country.

The company’s planned 北京夜生活网 capital expenditure for 2019 is 30.06 million yuan, a year-on-year increase of 17.


Among them, the planned capital expenditure of the exploration and production segment was US $ 2282 million, an annual increase of US $ 32.1 billion, and the planned production of crude oil9.

0.6 billion barrels, an increase of 0 every year.

1.6 billion barrels, with plans to produce natural gas3.

8 trillion cubic feet, an increase of 200 billion cubic feet per year.

The refining and chemical sector plans capital expenditure of 388 yuan, an increase of 235 per year.

1.3 billion US dollars, mainly for Guangdong Petrochemical, Daqing Petrochemical, Changqing and Tarim silicon carbide projects, which will help improve the company’s crude oil processing capacity and product structure.

The oil and gas reform continues to advance, and the oil and gas pipeline network is expected to be separated independently. It is further from the goal of “holding the middle and letting go for a while”. With the further development of oil and gas reform in the future, the marketization of natural gas prices is worth looking forward to.Relief.

We maintain the company 2019?
In 2021, the EPS will be 0.

38, 0.

41 and 0.

The forecast of 45 yuan maintains the investment rating of “prudent increase in holdings”.

Risk reminders: the risk of long-term fluctuations in international crude oil prices; the risk that the progress of oil and gas reforms is not in a hurry; the demand for refined products is less than expected.

Tiandi Technology (600582) Dynamic Tracking Report: Shake the burden and move forward

Tiandi Technology (600582) Dynamic Tracking Report: Shake the burden and move forward

Key points of investment: The company recently released its annual report to achieve a total operating income of 179.

4 billion, an annual increase of 16.

7%; Realize net profit attributable to owners of the parent company.

600 million, an annual increase of 2.

1%; budget benefit is 0.

23 yuan.

The company plans to pay 0 for every 10 shares.

50 yuan (including tax).

Ping An’s perspective: R & D budgets continue to grow with remarkable results.

R & D expenditure 7.

84 ‰, a year-on-year increase of 47%, accounting for 4 of operating income.


The 13 projects undertaken by the company in 18 years, including “large straight high-level directional drilling technology and supporting equipment for complex roof rock formations”, “long oblique large-diameter directional reverse well drilling technology and equipment research”, etc. have achieved the 2018 China Coal Industry AssociationFirst prize for scientific and technological progress.

Operating income hit a record high, and gross profit needs to be improved.

In 2018, the company achieved operating income of 179.

40,000 yuan, an increase of 16 in ten years.


The growth rate of the company’s main product operating costs is higher than operating income, and gross profit margin has declined.

The results of Xi’an Academy, Chongqing Academy and Beijing Huayu have declined, and they are expected to improve in the future.

Net profits of major holding companies such as Tiandi Wangpo, Tiandi Benniu, and the Chinese Academy of Coal Science have steadily increased; Changzhou Research Institute, Shanghai Coal Scientific’s net profit has turned from negative to positive; Xi’an Academy, Chongqing Academy, Beijing Huayu’s net profit has increased significantly by -1.

2.3 billion, -0.

7.3 billion, -1.

1.2 billion.

The main products of the Xi’an Academy and Chongqing Academy involve safety production products such as geological exploration, gas drainage, etc., and the transformation of safety production has been stricter and stricter, and the company’s performance has been promoted.

Beijing Huayu successfully won the bid for four projects exceeding RMB 100 million in 18 years, and its future performance is expected to improve.

New breakthroughs and new highs were achieved, and equipment manufacturing shifted to high-end intelligence.

In 2018, the company’s newly signed contract value was 255 trillion, an annual increase of 20%, and the contract value of most of its subordinate units achieved growth.

The company released the “Development Plan for Intelligent Manufacturing 2025” to accelerate the transformation of equipment manufacturing to high-end development; quickly seize transparent mines / working faces, intelligent coal mining working faces, intelligent rapid driving technology, underground unmanned electric vehicles, underground operationsAnd disaster relief robots / aircraft, downhole precision navigation and positioning technology and other technological developments.

Accounts receivable dropped significantly, and operating cash flow increased significantly.

In 2018, the company’s accounts receivable dropped to 99 trillion, a decrease of 16%.

Operating cash flow increased significantly from 11 in 2017.

9.3 billion to 13.

220,000 yuan, an increase of 10.


Profit forecast and investment recommendations: According to the National Energy Administration’s Announcement No. 2 of 2019, as of the end of December 2018, the production capacity of coal mines with complete licenses is 35.

3 billion tons / year; has been approved (approved) to start construction of coal mine capacity 10.

300 million tons / year.

The coal production capacity under construction is only 1 billion tons, and the company’s performance is expected to increase in the future in the case of the promotion of intelligent mining of coal mines and strict supervision of production safety.Taking into account the decline in the company’s gross profit margin and the provision of bad debt reserves, we predict that the company’s EPS for 2019-2021 will 成都桑拿网 be 0.

33, 0.

40, 0.

44 yuan (the original forecast was 0 for 2019-2020).

40, 0.

47 yuan), an increase of 42%, 21%, and 11% each year, corresponding to PE of 11.



8 times.

Maintain company “recommended” rating.

Risk reminders: 1) Under the influence of macro factors, there may be a sluggish demand for coal, such as electricity, steel, building materials, and chemicals, leading to a decline in coal consumption, and the increase in new energy generation to replace some coal demand, resulting in excess coal productionGrowth rate of investment in fixed assets; 2) Adjustment of imported coal policy; release of imported coal resulted in excess domestic coal supply; progress of coal mine projects under construction exceeded expectations, affecting the company’s coal machine equipment and safety equipment 杭州夜生活网 revenue; 3) company’s machinery manufacturing, coal productionIf there are security accidents such as technical services, etc., it may lead to normal business development. 4) After the excess capacity is withdrawn, the company may have problems with some accounts receivables that are difficult to overcome, or new profits due to the decline in coal industry profits.Risk of billing problems.

Fuyao Glass (600660) Interim Review: Gross Margin Declines in Overseas Business Integration

Fuyao Glass (600660) Interim Review: Gross Margin Declines in Overseas Business Integration
The sales volume in the domestic market declined. The performance of German SAM integration was slightly lower than expected. On August 28, the company disclosed its semi-annual report. The company achieved revenue of 102 in the first half of the year.87 trillion bits, previously + 2%; net profit attributable to mothers is 15 trillion bits, with an interval of -19.43%, net profit after deducting non-return to mother 13.4 trillion, -26 a year.75%; of which Q2 achieved operating income of 53.54 ppm, +0 for ten years.3%, net profit attributable to mother is 900 million yuan, -31% for the whole year, net profit attributable to mother after deduction is 8.2.4 billion, previously -33%, Q2 performance exceeded expectations, mainly due to Q2 domestic passenger car industry growth rate replacement surpassed expectations, the German SAM integration dragged down the company’s gross profit margin.We believe that the company is actively developing the aluminum trim business and looking for new growth points. The future development is worth looking forward to. The company’s cash flow management is better. It has bargaining rights in the industrial chain and rich cash dividends. The company’s EPS is expected to be 1 in 19-21.31\1.51\1.75 yuan to maintain the “overweight” level. Deteriorating domestic demand and integration of foreign business, Q2 gross profit margin extended Q2, all fell Q2, the company achieved a gross profit margin of 36.1%, five years -5.9pct, compared to -3pct, we think that the ultimate reduction in gross profit margin may be the growth of domestic automobile sales, insufficient capacity utilization, and the float glass sales have weighed on the gross profit margin. In foreign countries, the newly acquired German SAM company completely consolidated in the second quarterThe company had the highest gross profit margin during the integration, which dragged down the company’s gross profit margin; the selling expense ratio was 6.4% per year -0.1 point; management expense ratio 13.3% (including R & D expenses), flat for one year; financial expenses are -1.1.3 billion.The company realized a net operating cash inflow of 13.29 trillion, accounts receivable and notes ten years -11.1%, the company accelerated the collection of accounts receivable; the inventory for ten years +18.5%, mainly due to the increase in float glass inventory, internal demand did not meet expectations; accounts 夜来香体验网 and bills should be due -6.8%. The production capacity of the US plant continues to climb. From the perspective of the integration of SAM in Germany or the completion of the branch next year, H1’s automotive glass business has achieved revenues of $ 9.2 billion, each time -2.92%, gross margin 34.47%, a year -1.23pct, basically due to insufficient domestic downstream demand, increasing annual downward pressure.The float glass business achieved revenue of 17 trillion, exceeding + 6% and a gross profit margin of 34.6% per year-6.5pct, basically due to insufficient internal demand, float glass supply.Other business income was 7 trillion and cost was 7.US $ 2.7 billion, mainly due to German SAM business revenue. At present, German SAM is still in a decline in gross profit. The US factory realized operating revenue of 1.9 billion, +13 in ten years.7%, net profit 1.480,000 yuan, ten years +16.4%, net profit margin 7.72%, ten years +0.18pct, through the gradual climbing of the U.S. plant capacity, the net profit margin improved. We expect the U.S. plant capacity to reach 380 in 19?3.9 million sets. The automotive glass leader develops new businesses and maintains an “overweight” rating. We believe that it should be replaced by domestic demand in the Q2 domestic automobile market and overseas business integration. Fuyao’s Q2 performance growth rate should be replaced.However, in the long run, the company’s cash flow management is better. It has bargaining power in the industry chain, rich cash dividends, active overseas expansion, US factories turning losses into profits, and a broad market space in the future.The company actively expands aluminum trim business and looks for new growth points.We predict company 19?21 year net return to mother is 32.85, 37.85, 43.9.3 billion (down 21.2%, 17.1%, 12.1%), the corresponding EPS is 1.31\1.51\1.75 yuan.In the same industry, the company’s PE was 19 times 19 years. Considering the company’s rich cash dividends, the prospect of expanding new business is expected.20 times PE error, adjust target price range to 24.89?26.2 yuan, maintaining the “overweight” level. Risk warning: Sino-US trade conflicts intensify; the company’s overseas expansion is less than expected; raw material prices rise

State Laojiao (000568): National cellar volume and price go up

State Laojiao (000568): National cellar volume and price go up

Event Company released its 2019 Interim Report: 19H1 achieved revenue of 80.

1.3 billion (+24.

81%), net profit attributable to mother 27.

5 billion (+39.

8%), deducting non-net profit 27.

2.8 billion (+38.


2Q19 revenue 38.

4.4 billion (+26.

01%), net profit attributable to mother 12.

3.5 billion (+35.

98%), deducting non-net profit 12.

1.8 billion (+33.


Key points of investment: Revenue: National cellar price increases, sales volume rises, special potential is upward: 19H1 company achieved revenue of 80.

1.3 billion (+24.

81%), of which Q2 revenue increased by 26%, the chain accelerated.

In terms of products, 19H1 high / medium / low-end wines achieved revenue of 43 respectively.



84 trillion, each year +30.



7%, of which Q2 high / medium / low-grade wine respectively achieved revenue 21.



700 million.

1) Revenue of premium wine segment increased 5pct QoQ from Q1, with both volume and price rising.

Guojiao 1573: In this round of high-end wine price increase cycle, Guojiao repeatedly controlled the price and the price steadily rebounded. The channel research Q1 approval price was about 740 yuan, and the end of Q2 has been raised to about 790 yuan. In late August, the company plannedOutward price payment, +30 yuan / bottle. Tracking shows that the channel is full of strength and positive payment. In terms of regions, the East China market continues to expand channel construction and consumer cultivation under the strategy of “eastward entry to the south,” and grassroots tracking in Suzhou., Hangzhou, and other key cities, national cellars tasting and strengthening communication with core consumers; 2) Special songs.

Special song 60 positioning group purchase of large single products, strong growth rate, driving the old special song potential energy increase, the old special song card price of 200 yuan, the end of June raised the ninth generation of old special song settlement price of 30 yuan / bottle, and launched the tenth generationSpecial song (priced at 308 yuan / bottle).

The cash flow has improved slightly, demonstrating the improvement of the centripetal force of the channel.

Net cash flow from operating activities in Q2 11.

50,000 yuan (ten years + 10).

900 million), notes receivable 24.

600 million (previously -500 million), advance payment 13.

900 million (ten years + 300 million).

Profit side: performance is slightly higher than expected, structure optimization + rate downward: the company’s gross profit margin in 79H1 was 79.

7% (+4.79 points).

In terms of different products, the gross profit margins of high / medium / low end wines were 91.



9%, ten years +0.



58 points.

The structure is optimized, and the tax calculation of low-grade alcohol consumption tax has been changed 佛山桑拿网 from the cost calculation to the consumption tax contribution.

19H1 consumption tax rate increased by 1 quarterly.

6 points to 10.

2%. Except for the mismatch of net production and sales caliber, part of the consumption tax is transferred from the production cost.

19H1 selling expense ratio 19.

2% (+0.

64pct), mainly in order to enhance brand influence, advertising and marketing promotion expansion gradually increased2.

200 million (+24.

7%), in addition to product announcements to continue to expand the dual-brand pull, the company’s promotional costs are invested in end consumers, judging that the rate is relatively stable and the cost-effectiveness ratio is promoted; 19H1 management expense rate (including research and development)

5% (-1 pct), the proportional effect drives down the rigid rate.

In summary, the net profit margin in 19H1 was 34.

69% (+2.

98 pct), net profit attributable to mother 27.

5 billion (+39.


The advancement of technological transformation was in line with expectations to ensure the supply of production capacity.

At the end of 19H1, the ending surplus of construction in progress increased by 16 compared with the beginning of the year.

06 trillion, an increase of 53.

54%, the technical transformation project of brewing engineering progressed in an orderly manner.

The current cumulative expenditure is 37.

500 million US dollars, the first phase of the technical transformation project has been completed, is expected to release wine at the end of 19Q3, 1573 is expected to reach 1 in 2020.

5 nominal.

Profit forecast and investment rating: We believe that the company’s dual-brand strategy is steadily advancing, channel-side alignment, brand-side overweight, and product-side focus. Guojiao 1573 has surpassed its historical high sales volume, and continues to enjoy high-volume and high-end track sales.The potential energy of the special song series is upward, two-wheel drive, price increase on the profit side + structural optimization is expected to continue to contribute flexibility.

It is estimated that the revenue for 19-21 will be 16.41 / 195/226 billion, and it will be + 26/19/16% in the future. / 23 / 19X, maintain “Buy” rating.

Risk warning: Macroeconomic fluctuations, risk of falling demand for high-end wine.

AVIC Shen Fei (600760): Balanced production in Q1 2019 to support growth continues to be optimistic about mass production of new fighters

AVIC Shen Fei (600760): Balanced production in Q1 2019 to support growth continues to be optimistic about mass production of new fighters

Event: The company released the first quarter report for 2019 and the first quarter report for 2019, and the company achieved revenue of 50.

850,000 yuan, an increase of 191 in ten years.

27%, net profit attributable to mothers1.

9.8 billion yuan, an increase of 2 from a loss of 18 in the previous quarter.

21 trillion, corresponding to 0 benefits.

14 yuan / share.

Opinion: Balanced production and other companies help the company’s revenue, and profits have increased significantly.

(1) Report that the company achieved revenue of 50.

850,000 yuan, an increase of 191 in ten years.

27%, accounting for 25 of the full year 2018 revenue.

23%, mainly benefited from: ① the company’s consolidated balanced production strategy and the increase in sales volume in the current period; ② advance receipts of previous contracts are recognized in the current period as the product is delivered, and the book value of advance receipts at the end of the reporting period is 75.

930,000 yuan, a decrease of 20 from the fourth quarter of the previous quarter.

00%, while the same period last year only decreased by 2 compared with the previous month.


(2) Realize net profit attributable to mother 1.

98 trillion, the earlier 18Q1 turned losses into profits, an increase of 2.

21 trillion, accounting for 26 of the net profit initially attributed to mothers in 2018.

65%, mainly due to the increase in revenue, but also benefited from: ① increase in gross profit margin increased by 0.

85pt; ② the reduction of the expense ratio during the period 4.

3pt, or the company’s advanced technology application and smart manufacturing production model pilot construction continued to bear fruit.

(3) The book value of prepaid accounts at the end of the reporting period increased by 25 from the previous quarter.

31%, indicating that the company is still expanding the scale of procurement downstream.

The carrying amount of inventory at the end of 2018Q4 was 97.

700,000 yuan, an increase of 23 from the beginning of the year.

37%; book value of work in progress is 77.

70 trillion, an increase of 37 earlier.

69%; book value of raw materials 19.

US $ 9.6 billion, mainly for production, and the inventory of delivered product reserves increased by 11 earlier.

07%, indicating that some products have formed output value but have not yet been delivered.

The company’s aviation product production is expected to maintain a good momentum, and gradually achieve achievements to achieve stable growth.

The company is an important R & D and production base for military fighters and will continue to benefit from the peak of military aircraft 淡水桑拿网 installations.

Shenfei Group is known as “the cradle of Chinese fighter jets”. Since the founding of the People’s Republic of China, it has been insisting on this mission of key aviation defense equipment. It is a famous assembly plant such as J-15, J-16 and J-31.

At present, driven by the increasingly severe national defense security and geopolitical situation, and driven by the requirements of building a strong military that meets the national strategic requirements, military expenditures are now accelerating.

The budget for defense spending in 2019 is 1.

19 trillion, an annual increase of 7.

50% higher than the GDP growth of 6% -6 in 2019.

5% target.
In the future, it is expected that military expenditures will continue to grow and increase steadily at a higher growth rate. Aviation military equipment supporting weapons and equipment that is the state’s key support will continue to accelerate the installation.
Benchmark the inter-generational composition structure of American fighters, and consider the domestic replacement and installation requirements for third and fourth generation aircraft. In the next 10-15 years, the army’s demand for various types of fighters including Shen Fei and Cheng Fei is expected to exceed 1,000.
We believe that the huge objective demand is expected to improve the company’s existing continuous mass production and new models of fighters will usher in stereotypes and volume, which will promote the company’s continued rapid growth in revenue.

The wave of restructuring of military enterprises has injected new vitality into equity incentives.

On May 15, 2018, the company issued a long-term stock incentive plan. On October 18, the incentive plan was approved by the SASAC.

According to the revised implementation measures, the company this time to the company’s senior management, directors and technical backbone of a total of 80 subjects to 22.

The price of 53 yuan / share was awarded a total of 317.

10,000 shares of stock.

The forthcoming equity incentive plan will further improve the corporate legal person governance structure, promote the establishment of the company, improve the distribution mechanism that combines incentives and constraints, fully mobilize the enthusiasm of the company’s directors, senior management and key employees, and effectively bring shareholders’ interests to the company.The combination of the interests and the personal interests of the operators will help improve the company’s management level, promote the rapid improvement of the company’s operating performance, and ensure the smooth realization of the company’s long-term development goals.

The reform of the military product pricing mechanism has driven the company’s development, and its profitability is expected to continue to improve.

With the advancement of the reform of the pricing mechanism of military products, the 5% profit cap is loosened, which is beneficial to the machine manufacturers whose net profit margin has been improved.

Combined with international experience, the net profit margin of the whole company is expected to increase from the current 2-4% to 5% -8%, and the profitability will potentially increase the space barrier. As an assembly company, the company will benefit from the reform of the military pricing mechanism.

Earnings forecast and rating: Our 2019/20/21 EPS forecast is 0.



85 yuan, corresponding to the PE of 51/41 / 36X in 2019/20/21, giving the company a “strong recommendation” rating.

Risk reminder: The military aircraft is not installed as expected, and the military expenditure is structurally adjusted.

Sino-Singapore (002912): The performance will increase quarter-on-quarter and will not change expectations. High growth trend is expected.

Sino-Singapore (002912): The performance will increase quarter-on-quarter and will not change expectations. High growth trend is expected.

Investment Highlights: Event: On October 11, 2019, the company announced a three-quarter report of its performance.

In the first three quarters of 2019, the company is expected to realize net profit attributable to shareholders of listed companies1.

72 to 1.

88 ppm, an annual increase of 10% to 20%; Q3 is expected to achieve net profit attributable to shareholders of listed companies in a single quarter.

04 to 1.

1.3 billion, a 10% to 20% increase in ten years.

The growth rate of the first three quarters and Q3 results was in line with expectations, and the long-term high-growth trend is expected to remain unchanged.

The net profit attributable to the parent company in Q1 and Q2 was -0 respectively.

06, 0.

73 trillion, -312.

57%, 22.


The company predicts that Q3’s single-quarter net profit growth will be 10-20%. After Q1’s net profit is temporarily interrupted due to the confirmation of orders, it reverses upward for two consecutive quarters. We expect Q4 will continue to maintain an upward trend and maintain a high appreciation expectation.constant.
As performance improves quarter by quarter, cash flow is expected to continue to improve in Q3 and Q4.

The company’s Q2 net cash flow from operating activities in a single quarter was 0.

110,000 yuan, scored 0 at Q1.

The 16 million optimization is obvious, and the net cash flow from H1 operating activities is -0.

0.5 billion.

With reference to the “low before high” feature of the company’s single quarter operating cash flow in the past year, the operating cash flow in each quarter of 2018 was -0.




4.9 billion.

It is expected that the net profit of the two quarters of H2 will increase quarter by quarter quarter by quarter, contributing more than 70% of the expected performance, and the cash flow will be improved quarter by quarter in the second half of the year. It is expected that the company’s income statement and cash flow statement quality will be excellent at the end of the year.

The high growth of broadband network business is the basis for the company’s gradual increase in cash delivery. Network visualization in the post-5G cycle will benefit from traffic bursts.

19H1 company’s broadband network visualization revenue doubled by 75.

61%, continued to contribute to the overall revenue growth, the company’s broadband network business is expected to continue to maintain high growth in the first three quarters of 19 and before and after.

In the long term, the company’s network visualization is expanding horizontally from its internal strengths, and the downstream scenarios are rich, which will benefit from the 杭州桑拿网 continuous outbreak of network traffic.

Product companies’ gross profit margin is the embodiment of core competitiveness, and continuous research and development is the guarantee for long-term growth.

The company’s gross profit margin has been above 70% for 17 years, and the gross profit margin in 19H1 has reached 81.

67%, indicating that the company’s product capabilities are strong.

For example, new products for mobile networks are extended from 9KHz to 6GHz full-spectrum data collection, short-term repeated insertion of mobile network product vacancies, and long-term reserves for 5G scenarios.

Continued product iteration and gaining first-mover advantage in the market are important means to maintain gross profit margin.

Information security is a long-term trend from top to bottom.

On September 10, the National Internet Information Office issued the Regulations on Cyber Ecological Governance (Draft for Soliciting Opinions); from September 16 to 22, Cyber Security Publicity Week was implemented nationwide.

Traffic outbursts are overlaid with external environmental influences, overall prevention and control, and situational awareness have become a new trend area of information security.

The company has the ability to collect, analyze, and apply the entire process of data. The value will increase after the extension and extension, and the security leader will be prominent.

Maintain profit forecast and “Buy” rating.Driven by the core of traffic, the front-end network visualization leader is partially stable, and network content security and big data services are outstanding, maintaining the 2019-2021 profit forecast unchanged.

The company’s net profit is expected to be 2 in 19/20/21.



8.6 billion, corresponding to PE of 37/26/18.

Maintain “Buy” rating.

China Construction Bank (601939): Non-interest rate growth improves stability of asset quality

China Construction Bank (601939): Non-interest rate growth improves stability of asset quality

Introduction to this report: Interim reports are in line with market expectations.

Non-interest growth increased quarter by quarter, driving improvement in revenue and overall asset quality stability.

Maintain target 重庆耍耍网 price of 8.

74 yuan.

Investment Highlights: Investment Recommendations: Maintain a forecast of 5/19/20/21 net profit growth.

24% / 5.

20% / 5.

08%, EPS1.



17 yuan, BVPS 8.



85 yuan, the current price corresponds to 6.



94 times PE, 0.



71 times PB.

Maintain target price of 8.

74 yuan, corresponding to the 1st of 19 years.

05 times PB, 26% of current price space, maintain overweight rating.

Performance overview: 19H1 returns to parent net profit every +4.

9%, revenue +6.

1%, ROE (annualization) 15.

6%, net interest margin 2.


Defective rate 1.

43%, QoQ -3bp; provision coverage ratio is 218%, QoQ + 4pc.

New understanding: Non-interest income is expected to continue to drive performance growth and increase non-interest growth.

19H1 revenue +6 for ten years.

1%, the growth rate increased by 2 compared with Q1.

8pc, the core driving factor is that the growth rate of non-interest income increases year by year, and the net income of non-interest income in 19H1 increases by +9.

6%, an increase of 8 from the previous quarter.

6pc, of which: ① other non-interest income +6 per year.

4%, ending the trend of continued negative growth since 2017, due to the recovery of the capital market and the low base effect of the same period in 18 years; ② Intermediate business income +11 per year.
2%, attributable to restorative growth in multiple businesses.
The interest margin narrowed month-on-month.

19Q2 net interest margin (beginning and end of period) 2.

07%, Q1-5bp QoQ, which was attributed to intensified loan competition and declining return on investment assets, resulting in a return on assets of -7bp QoQ.

Stable asset quality.

① Core indicators improved.

The defective rate decreased by 3bp to 1 from Q1.

43%, the attention rate decreased by 1bp to 2 compared with the beginning of the year.

80%; ② forward-looking indicator variables.

The overdue rate is + 16bp to 1 compared with the beginning of the year.

43%, deviation from the beginning of the year + 7pc to 67%, the trend of change remains to be seen.

Risk Warning: Economic Stall, Bad Outbreak

Shaogang Songshan (000717): Performance in line with expected balance sheet continued repair

Shaogang Songshan (000717): Performance in line with expected balance sheet continued repair
This report reads: The company’s 2018 performance was in line with expectations, with a gross profit per ton of steel in ten years and a net profit per ton of steel hitting a new high in recent years.The company is a leading steel company in Guangdong Province and has fully benefited from the good supply and demand pattern in the province. It is expected that profit will remain at a high level.  Investment Highlights: Maintain “Overweight” rating.The company achieved operating income of 27 in 2018.1.1 billion, up 7 every year.95%; net profit attributable to mother 33.0.6 billion, up 28 every year.20%, the company’s performance is in line with expectations.Taking into account the company’s strong industry supply in 2019, the company’s EPS for 2019/2020 is reduced to 1.24/1.40 yuan (originally 1.53/1.57 yuan), plus the EPS forecast for 2021 is 1.51 yuan.The company’s profitability is still strong, and it directly benefits from the construction of the “Guangdong, Hong Kong, Macao” Greater Bay Area. Future performance can be expected, giving the company PE 7 in 2019.25 times, maintaining the company’s target price of 9 yuan, 杭州桑拿网 maintaining the “overweight” level.  Steel prices remained high, and gross profit per ton of steel increased steadily.The company’s steel prices remained at a high level. In 2018, the gross profit per ton of steel was 771 yuan / ton, and the corresponding net profit per ton of steel was 532 yuan / ton, which was 171 yuan / ton and 95 yuan / ton higher than 2017.It is expected that the downstream demand for steel may decline slightly in 2019, the iron ore at the overlapping cost side will be strong, and the company’s profit may decline slightly.  Operating cash flow increased and the balance sheet continued to be repaired.The company’s operating cash flow in 2018 41.6.1 billion, compared with 37 in 2017.5.2 billion increased by 10.9%.The company’s asset-liability ratio in 2018 decreased by 16 compared with 2017.5 up to 62.4%, with interest denied by 51 in 2017.£ 7.4 billion38.USD 8.6 billion, the company’s balance sheet continued to repair.  The aim is to benefit from the construction of the “Guangdong, Hong Kong, Macao” Greater Bay Area, and the regional supply and demand pattern is good.Guangdong Province is a province with a net inflow of steel, and regional steel consumption has always been higher than steel supply.As a leading steel company in Guangdong Province, the company has certain pricing power in Guangdong Province, and its steel prices are higher than other local steel companies.Against the background of the accelerated construction of the “Guangdong, Hong Kong and Macao” Greater Bay Area, the company directly benefited from the continuously optimized supply and demand structure in the region, and its competitive advantage was obvious.  Risk warning: The macro economy is accelerating downward, and the supply side rises more than expected.

Aluminum Corporation of China (601600): Gross profit margin drops but main operating indicators generally improve

Aluminum Corporation of China (601600): Gross profit margin drops but main operating indicators generally improve

The company released three quarterly reports and achieved revenue of 1,457 in the first three quarters of 2019.

08 million yuan, an increase of 15 in ten years.

91%; realized net profit attributable to mother 8.

08 million yuan, a decrease of 44.

66%; net profit after deduction of 92.56 million yuan, a significant reduction of 87 each year.


Opinions: 1. Increasing income and reducing profits, alumina dragged down third-quarter results: The company’s first three quarters of revenue increased and profits declined significantly due to two reasons: First, the significant drop in alumina prices.

The price of alumina in the first three quarters dropped by more than 15% each year, directly affecting net profit5.

600 million.

Although the cost of the alumina downstream cationic electrolytic aluminum plate has improved, the corresponding increase in profits has made it difficult to completely hedge on a scale.

The second is the company’s accelerated structural adjustment, the implementation of transformation and upgrading of Shandong Huayu and Shanxi Huasheng, and targeted relocation of employees and other expenses, and this part is mainly a one-time expenditure, and there is no continuity.

2. The gross profit margin dropped, but the main operating indicators generally improved: the company’s gross profit margin for the first three quarters of sales was 7.

33%, down by 1 every year.

The 13 single ones were mainly due to the company’s integrated hosting platform sales, which resulted in a significant increase in the scale of the low-margin trading business by more than 20%.

However, at the same time, major operating indicators, including asset turnover, 合肥夜网 three expense ratios, and process changes, have generally improved, showing the company’s considerable results in reducing costs and increasing efficiency.

This subjective improvement can effectively defend the considerable down cycle of the industry.

3. Investment highlights: The main focus of the future is the Bopha Bauxite project in Guinea and the 200 cubic meter project of Fangchenggang in Guangxi, which will be put into production in 2020. At the same time, the company will shift its production capacity from high-cost environmentally controlled regions, althoughTo make a one-time expenditure, but in the long run, it is beneficial to the company’s profitability.

In addition, due to the severe fall in aluminum prices, provision for extended periods of impairment provision was made in the fourth quarter of 2018. From the perspective of aluminum prices in the fourth quarter of this year, asset impairment factors will improve.

It is expected that the company will return to its parent’s net profit in 2019-21.



69 trillion, EPS is 0.



12 yuan, maintaining the company’s overweight rating.

4. Risk warning: the risk of fluctuations in aluminum prices and the deterioration of the trade war situation.

Golden Mantis (002081) 2018 Annual Results Express Review: Steady Performance, Excessive Equity Incentives, Increased Growth Elasticity

Golden Mantis (002081) 2018 Annual Results Express Review: Steady Performance, Excessive Equity Incentives, Increased Growth Elasticity
This report reads: The company’s 2018 performance growth rate remained stable at 11%, the growth rate of new breakthrough orders was 24% higher than the revenue growth rate, and the order-to-income ratio was 2.Three times, the combined company gradually expanded equity incentives, and the company’s performance growth elasticity in 2019 was further improved. Investment Highlights: Maintain overweight.The company released the 2018 performance report: total revenue of 251.0 billion (+19.5%), net profit attributable to mother 21.300 million (+11.3%), slightly higher than expected, raised 2018-2020 EPS to 0.80/0.92/1.05 yuan (previously 0.78/0.89/0.99 yuan), a growth rate of 11无锡桑拿网/16/13%.Due to the expected revision of performance, the company was given a PE estimate of 14 times (original 11 times) in 2019, corresponding to an increase in the target price of 12.88 yuan (original 9.38 yuan). The continued acceleration of 2018H2 performance shows good fundamentals, and the stable performance advantage is prominent.1) Revenue from Q1-Q4 in 2018 was 50.66/58.39/76.35/65.5.8 billion, a growth rate of 16.51/13.37/22.48/24.56%, net profit attributable to mother 5.53/4.35/5.96/5.50 billion, a growth rate of 15.66/4.10/10.21/14.35%.In 2018H2, the growth of revenue / attribution net profit increased significantly, or mainly due to the acceleration of local bond issuance, which accelerated various types of public construction / livelihood projects and credit improvement residential projects.2) Net profit attributable to mother 8.50% / zero reduction per year.64pct, of which Q1-Q4 single-season net interest rate is 10.92/7.45/7.81/8.39%, or mainly due to the increase in the company’s business scale, increased management expenses, and C-end home improvement R & D investment At the beginning of 2018, the single-year growth rate was nearly 24%, and the order income ratio was 2.Three times, fair incentives helped the company’s performance to improve steadily.1) 392 new contracts signed in 2018.3 billion / growth rate 23.85%, of which 213 are public.6.9 billion / growth 7.34%, residential 155.8.2 billion / growth rate 57.92%, design 23.06 billion / growth rate 21.37%, and 572 uncompleted orders have been gradually signed at the end of the period.04 billion / growth rate 20.91%; 2) In December 2018, the company completed the first grant of supplementary equity incentives, and the lifting of the ban requires revenue growth of 20% in 2019-2021.0/16.7/14.3%, net profit growth rate of 15.0/13.1/11.6%; 3) The company’s C-end home improvement is steadily advancing and the number of mature stores is gradually increasing, contributing to progressive improvement in profitability, and the prospects are promising. Catalysts: The growth rate of real estate sales rebounded significantly, social financial data continued to improve, and home improvement business was heavy. Risk warning: Real estate sales have fallen sharply, social financial data has fallen, and financing interest rates have increased.