China Satellite Communications (601698): Satellite Communications Operator Leads High-throughput Satellites to Bring New Business Space

China Satellite Communications (601698): Satellite Communications Operator Leads High-throughput Satellites to Bring New Business Space

Key points of investment Satellite communications operator leader.

Established in 2001, the company is the only satellite communications operating company in the developing country with communications satellite resources and independent control. It was listed on the Shanghai Stock Exchange in June 2019.

The controlling shareholder of the company, the actual controller is Aerospace Technology, which is China Aerospace Science and Technology Corporation.

The company’s main business is satellite space segment operation and related application services, mainly including satellite communications and broadcasting. It can provide products and services including satellite communications, satellite broadcasting, emergency protection, application services and customized services. Its main customers include radio and television related units, and telecommunications operations.Business, government departments, defense units, and large enterprises in the fields of finance, transportation, and petroleum.

The company is currently operating 16 commercial communications broadcast satellites, with satellite transponder resources covering C wavelength, Ku vertical and Ka transmission, etc. As the main carrier for vertical satellite resources to achieve global coverage, it has developed into Asia’s second largest, the world’s firstSix major fixed communications satellite operators.

High-throughput satellites are driving rapid growth in the satellite service industry.

The telecommunications satellite operation industry belongs to the satellite service industry and is a capital-intensive industry. The capital expenditure that forms the economies of scale is large and the marginal use cost expenditure.

From the perspective of the international market, due to the advancement of satellite technology, satellite supply has increased, and market competition has expanded fiercely. Until the end of 2017, there were more than 40 major fixed communications satellite operators in the world. From the domestic market perspective, only three domestic companies have satellite operations.Qualification, the company is the only satellite communications operator with satellite resources, and has a high domestic market share.

In the future, high-throughput satellites will become an important development trend of the industry. In terms of traditional communication satellites, high-throughput satellites have advantages in terms of capacity and unit cost, and have stronger capabilities in broadband access, satellite relay stations, mobile communications, and broadcast communications.The advantages of the broad competitiveness and application prospects.

We believe that from the demand side, new requirements such as high-definition programs and satellites in the future will drive the rapid development of the satellite communications industry. Specifically, high-definition programs will become the development direction of the radio and television industry.The bandwidth requirement for satellite transmission of TV programs is constantly increasing; satellite communication is the only or the most economical 南京桑拿网 communication solution for “on the move”. For shipborne communications, the length of global ocean satellite communications is seriously insufficient. For airborne communications, the futureThe penetration rate of domestic airborne WiFi is expected to increase significantly. From the perspective of in-vehicle communications, high-throughput satellite signals are more stable and the coverage is wider. At the same time, remote areas and the “Belt and Road” are expected to bring new growth space.

High-quality satellites and customer resources are the foundation of the company’s future growth potential.

As the main carrier of conventional satellite resources for global coverage, the company has developed into the second largest fixed communications satellite operator in Asia and the sixth largest in the world.

From the perspective of satellite resources, the company operates 16 commercial communications and broadcasting satellites, with satellite transponder resources covering C transmission, Ku vertical and Ka transmission, etc. The satellite communication broadcast signal covers the whole of China, Australia, Southeast Asia, South Asia, the Middle EastIn Europe, Africa, and other regions, the company’s transponder utilization rate is higher than the industry average, and it is flexible to respond to changes in the market environment. From the perspective of customer resources, the company has a long-term stable relationship with major customers. According to the prospectus, the company’s market share has reached 80%, is the main satellite space segment operation service provider in the domestic market; from the perspective of business layout, the company is actively building high-throughput satellites, and cooperates with domestic Internet companies, telecommunications operators, aviation and other industries to expand satellite applicationsIn the service field, we will create a Ka Broadband Satellite commercial application model with Chinese characteristics.

Investment suggestion: As the only domestic satellite communication operator with independent and controllable commercial communication and broadcasting satellite resources, the company has high-quality communication satellite resources and rich frequency orbit resources, has international advanced nature, and independent and controllable satellite Internet application service capabilities.High market share.

With the construction and operation of high-throughput satellites in the future, it will bring new space for the company’s performance growth.

We expect the company’s net profit for 2019-2021 to be 4 respectively.

6.7 billion / 5.


1.6 billion, EPS is 0.



15. The first coverage was given an “overweight” rating.

Risk reminders: the risk of changes in industry access policies; the risk of falling prices due to fierce international competition; the risk of overseas operations; the risk of the development of high-throughput satellite markets falling short of expectations; the risk of competition in different communication means; the risk of fluctuations in macroeconomic cyclesSystemic market risk

Origin (002701) 19Q3 Comment: The revenue growth rate is higher than expected, the change in the expense ratio causes the performance growth rate to be slightly lower than expected

Origin (002701) 19Q3 Comment: The revenue 南宁桑拿 growth rate is higher than expected, the change in the expense ratio causes the performance growth rate to be slightly lower than expected

The company achieved operating income of 64 in the first three quarters of 2019.

55 ppm, a 10-year increase3.

29%, quarterly, the company achieved operating income of 20 respectively.

5.1 billion, 20.

9.3 billion, 23.

11 ‰, increasing by 2 each year.

90%, 2.

25%, 4.


The company achieved a comprehensive gross profit margin of 26 in the first three quarters of 2019.

78%, a decrease of 0 per year.

20 points; net profit attributable to mother 10.

64%, a decrease of 0 every year.

59pct, the decline in net profit margin was greater than the gross profit margin mainly due to the increase in expense ratio during the period.

By quarter, the company’s gross profit margins in Q1, Q2 and Q3 were 26.

71%, 27.

40%, 26.

29%, respectively -0.

16pct, -0.

86pct, +0.

37 points.

Expenses during the first three quarters of the company13.

71%, an increase of 0 compared with the same period last year.

79pct, in addition to the financial cost rate, each rate has been increased.

Company sales expense ratio, financial expense ratio, management expense ratio, research and development expense expense3.

82%, 3.

40%, 5.

55%, 0.

95%, respectively +0.

28pct, -0.

23pct, +0.

46pct, +0.

27 points.

The company’s credit + asset impairment losses accounted for 0 in the first three quarters of 2019.

10%, an increase of 0 compared with the same period last year.


The initial net operating cash flow was zero.
48 yuan, a decrease of 0 compared with the same period last year.
15 yuan / share.

From the balance sheet perspective: as of the end of the reporting period, the balance of other receivables of the company1.

21 trillion, the end of the reporting period decreased by 43 compared with the beginning of the period.

98%, mainly due to the recovery of investment guarantees for some projects.

Company prepayment balance 2.

5.8 billion, down by 1 from the beginning of the period.


The two-piece can business is poised for growth, and Reignwood shares show confidence.

After the company completes the acquisition of Ball, the production capacity of the two-piece cans will reach 12 billion cans, accounting for 23% of the reorganization. It will also accept high-margin customers such as Budweiser and Coca-Cola.

At the same time, the structure of 青岛夜网 the two-piece can industry has continued to be optimized. Currently, domestic CR4 has reached 70%, and leading companies have a common demand for price increases.

At the same time, Reignwood Group’s increase in the company’s holdings also reflects Red Bull’s confidence in the future.

In addition, the company is constantly developing new customers, such as Feihe Dairy, Junlebao, etc. In the future, the company’s major customer risks will gradually decrease, and the customer structure will continue to be optimized.

Earnings forecast and rating: We expect the company’s EPS in 19-21 to be 0.

36 yuan, 0.

44 yuan, 0.

48 yuan, corresponding to PE 12.

2x, 10.

2x, 9.

2x (closing price on October 25).

Risk warning: raw material price fluctuations; customer concentration risk

Funeng shares (600483): Three quarterly reports are in line with expectations Offshore wind power begins to contribute performance

Funeng shares (600483): Three quarterly reports are in line with expectations Offshore wind power begins to contribute performance
Note: Thermal power performance rebounded, wind power utilization hours continued to decline, and net profit attributable to mothers increased by 21.61% of the companies released the 2019 third quarter report, with operating income of 74 in the first half of the year.0.7 million yuan, an increase of 13 in ten years.66%, achieving net profit attributable to shareholders of listed companies9.820,000 yuan, an increase of 33 in ten years.23%, deducting non-net profit 8.64 ppm, an 18-year increase.35%, in line with expectations. The company completed 139 generations in the first three quarters of 2019.3.2 billion kWh, an annual increase of 8.92%; completed online power 132.07 billion kWh, an increase of 8 per year.84%.The company’s offshore wind power started production in the third quarter, and Haifeng’s performance will continue to grow in the future.As previously expected, the company’s thermal power plant profitability is in a rebound cycle and is expected to continue to grow in 2019. Thermal power profits continued to rise as a whole, and thermal power projects that continue to be incorporated into high-quality project companies’ operations and investments are high-quality assets, and their profitability is at the internal actual level.In the future, it is expected that the company’s reorganization will timely acquire high-quality projects in the group or market to increase the company’s asset size.Under the circumstances that the maximum probability deviation of fuel prices may occur in the future and the company’s overall utilization hours are expected to be maintained and improved, the overall profit of the company’s thermal power projects is expected to stabilize and recover in the short term to reach a reasonable level. The Dingyanshan wind farm was put into operation, and the Pinghai Bay F zone sea wind project was successively connected to the grid. In the third quarter, the company’s Putian Dingyan mountain wind farm was completed and put into operation, and the company’s Pinghai Bay F zone offshore wind power project was gradually connected to the grid.In addition, the company’s Nan’an Yangping and 淡水桑拿网 Yongchun Waishan projects were completed and put into production in April. The company’s new energy installed capacity further increased, and the company’s new energy sector profit growth rebounded in 2019. The company’s sea wind project will bring generous returns to the company. At present, the company has approved a 900MW holding offshore wind power project in Putian Pinghai Bay F District, Putian Shicheng, Changle Offshore Area C. In addition, the company cooperated with the Three Gorges to participate in multiple Three Gorges offshore wind power projects.project.We expect that the offshore wind power projects (Putian Pinghai Bay F, Putian Shicheng, Changle Offshore Area C) that have been approved by Funeng Co., Ltd. and the offshore wind power projects of Three Gorges Group (Fuqing Xinghua Bay Offshore Wind Power Phases I and II, Zhangzhou LiuzhouAo D area) will bring about 8 to Funeng after it is fully put into production.6 ppm net profit increase.And 13 of Fujian offshore wind power.Looking at the 3GW plan, Funeng will have more offshore wind power investment projects approved for construction in the future, and offshore wind power will become a major increase in the company’s future performance. Proposed to purchase 10% equity of Ningde Nuclear Power from the Group, cash flow projects to improve the overall operating quality of the company On August 1, 2019, the company issued an announcement saying that it planned to purchase 10% of its Ningde Nuclear Power holdings by issuing shares from Funeng GroupEquity, the current transaction is proceeding smoothly.Ningde Nuclear Power has built and put into operation 4 nuclear power units with a total installed capacity of 435.60,000 kilowatts.The net profit of Ningde Nuclear Power in 2017, 2018 and January-March 2019 was 16 respectively.4.8 billion, 22.300 million and 4.600 million.The transaction will increase the company ‘s equity installed capacity, asset size and net profit, and improve the company ‘s overall quality. Earnings forecast We expect the company’s revenue for 2019-2021 to be 97.4.1 billion, 105.22 ppm and 112.2.6 billion; net profit attributable to mothers is 14.700 million, 17.900 million and 20.10,000 yuan, three-year compound growth rate of 24%, EPS is 0.94 yuan, 1.15 yuan and 1.29 yuan, target price of 12 yuan, give “buy” rating. Risks suggest that thermal coal prices will rise; the progress of offshore wind power projects will not meet expectations; the economic downturn will affect the heating demand in the park.

Sinoma Science & Technology (002080): Wind Power Driving Performance Elasticity Appears Initially

Sinoma Science & Technology (002080): Wind Power Driving Performance Elasticity Appears Initially

This report reads: The company’s 19Q1 performance exceeded expectations. We judge that 2019 may be a year of wind power installed capacity, which is expected to drive the company’s performance flexibility.

Investment Highlights: Maintain “Overweight” rating.

1Q1 company achieved revenue of 26.

56 trillion, an increase of 27.

4%, net profit attributable to mother 2.

1.5 billion, an increase of 45.

2%, exceeding market expectations.

We believe that 2019 is a big year for wind power installations, which is expected to drive the company’s performance flexibility and increase the company’s eps to 1 in 19-21.

02 (+0.

1),北京夜网 1.

2 (+0.

15), 1.

46 yuan, the same increase of 41%, 17%, 21%.

The company’s dynamic PE hub in the past five years is about 25X. Out of prudence, the company was given 19 times the PE and raised its target price to 19.

38 yuan.

Wind power continues to pick up, and demand for blades is booming.

It is estimated that during the reporting period, the company’s sales of wind power blades exceeded 900 MW, an increase of more than 120% over the recent period, the price was basically the same as last year, and the blade gross profit rate returned to 20%, which turned into a profit and turned into a profit.

The company’s wind turbine blades start to match the rise in the industry’s prosperity. According to the statistics of the National Energy Administration in the first quarter of 19, the installed capacity of wind power plants with 6000 kW and above in China was 188.88 million kW, an annual increase of 12.


In 19 years, we have tentatively confirmed the judgment of “rushing to install the equipment”, and gradually the wind power installed capacity is gradually developed.

The fiberglass price center moved downwards, but increasing production capacity contributed to sales growth.

Affected by the changes in the prices of electronic yarns and low-end rovings, the glass fiber prices of the company in 19Q1 were estimated to be 4-5pct above the continuous top.

However, the company’s top 12 production line was put into production at the end of 18, contributing to the sales increase. It is estimated that the sales volume also increased by about 5%.

From the perspective of industry demand, inventories have started to decline in March, and more production capacity has been basically digested. We judge that the first quarter is the bottom of glass fiber demand and price, and the profit growth in the second quarter began to pick up.

Lithium-ion alkaline basic breakeven, mid-to-high end positioning new energy.

The company’s four 60 million flat wet production lines have been completed, and it has established long-term cooperation agreements with billion-well lithium energy and other well-known battery companies.

We believe that the company’s lithium-ion dissolving products are positioned at the high end, and the completion of the production line debugging is expected to provide new momentum for the company’s performance growth.

Risk reminder: 南京龙凤网global macro economy gradually expands, and lithium battery progress is less than expected

Hailan House (600398): Industry Leader Maintains Steady Growth in First Half of Results, Expects Acceleration in Second Half

Hailan House (600398): Industry Leader Maintains Steady Growth in First Half of Results, Expects Acceleration in Second Half

The company announced the semi-annual report of 019 with operating income of 107.

21 ppm, a ten-year increase of 7.

07%, net profit attributable to mother 21.

25 ppm, a ten-year increase2.


The revenue growth of the main brand Hailan Home accelerated in the first half of the year, the channel expansion steadily promoted the sub-brand view, and the revenue of the main brand Hailan Home increased in the first half.

28 ppm, an increase of 5 in ten years.

05%, iju rabbit revenue 5.

470,000 yuan, an increase of -9 in ten years.

79%, San Keno’s professional service revenue was 9.

36 ppm, an increase of 12 in ten years.

88%, revenue from other brands3.

08 million yuan, an increase of 993 in ten years.


In the second quarter, the above-mentioned brands increased by 9 in each quarter.

30%, -23.

57%, 14.

52% and 892.


Among them, the rapid revenue growth of the main brand mainly benefited from the improved cost-effectiveness of the products and the good sales of the new IP cooperation models. Aijutu was affected by the overall sluggishness of women’s clothing and channel adjustments, and San Keno maintained steady growth.

In terms of channels, the number of Hailan House stores in the first half of the year was 5,449, Ijutu 1,241, and other brands 1,050, which increased by 152 earlier, decreased by 40, and increased by 83.

The company’s gross profit margin and period expense ratio increased slightly in the first half of the year, and its operating indicators remained stable.

67%, compared with 40 in the same period last year.


By brand, the gross profit margin of the main brand is 44.

56%, love the rabbit 12.

50%, San Keno 48.

55%, other brands 24.

93%, compared with 42 in the same period last year.

09%, 29.

04%, 50.

59% and 49.


The increase in the gross profit margin of the main brand was mainly due to the rapid increase in direct-operated stores. The decline in the gross profit margin of Aiju Rabbit was mainly due to discounts on sales pressure. The decline in gross profit margin of other brands was mainly due to new brand variables and the inventory of boys ‘and girls’ children’s clothing brands that were increased by 2018Caused by.

The company’s expense ratio during the first half of the year was 14.

84%, 12 in the same period last year.


The increase in period expenses was mainly due to the increase in direct-operated stores, increased depreciation after the construction of the project was converted, and the increase in employee compensation brought by the new brand.The company’s inventory turnover days and accounts receivable turnover days in the first half of the year were 264 days and 12 days, respectively, compared with 262 days and 10 days in the same period last year, which remained basically stable.

Net operating cash flow of the company in the first half of the year.

99 ‰, a decline of 40 a year.

68%, mainly due to the increase in other external operating transactions.

EPS for 2019-2021 are expected to be 0.

82 yuan / share, 0.

89 yuan / share, 0.

At 97 yuan / share, we are optimistic that the company’s net profit growth attributable to mothers will accelerate in the second half of the year. The main brand is expected to 天津夜网 maintain steady growth. The increase in income caused by convertible bonds will weaken due to bases.

With reference to the average PE of a comparable company in 2019, the company is given 13 times PE in 2019, with a reasonable value of 10.

66 yuan, maintain “Buy” rating.

Risks remind the risk of the backlog of terminal inventory; extreme weather affects the risk of clothing sales; the risk of new brand cultivation;

Wanxin Media (601801) 18 Annual Report Commentary: The main business is stable and the education service business is steadily improving. The diversified distribution system continues to improve

Wanxin Media (601801) 18 Annual Report Commentary: The main business is stable and the education service business is steadily improving. The diversified distribution system continues to improve
Events: 1. The company announced 18-year results and achieved 98 revenue.3.2 billion (+12 year-on-year.89%), net profit attributable to mother 10.8.7 billion (YoY-2.67%), deducted non-net profit 5700 million (YoY-2.73%); net cash flows from operating activities5.8.9 billion (+316 YoY).49%).Gross sales margin 18.05% (Yo-Y.27pct), net sales margin 11.25% (YoY-0.53pct). 2. Business situation: The company’s general book sales income for 18 years29.0.6 billion (YoY + 1.19%), gross profit margin 36.56% (+3 year-on-year.59 points); Textbook sales income 14.20,000 yuan (YoY + 0.28%), gross profit margin 22.43% (YoY-1.65 points); Revenue from supply chain and logistics services business 15.8.1 billion (+156 year-on-year.74%), gross profit margin 2.67% (YoY-1.08pct); education equipment and multimedia business income 12.5.1 billion (+ 9% YoY).82%), gross profit margin 7.91% (+2 YoY).84pct); stationery and other income10.4.7 billion (+6 year-on-year.94%), gross profit margin 6.83% (YoY.05pct); merchandise trade income 9.7.5 billion (YoY-14.92%), gross profit margin 1.88% (+ 1% year-on-year.4 points); Other business income 6.6.9 billion 北京桑拿洗浴保健 (+19 year-on-year.78%), gross margin of 24.9% (-3% YoY).45pct). Opinions: 1. The company’s overall operation is stable, the commodity trading business has shrunk, and the main structure has been optimized; the income side has maintained double-digit growth; the profit side has fluctuated slightly, mainly due to the increase in asset impairment losses over the past 18 years, of which investment in its own fundsWealth management products are overdue and accrued 0 for impairment.5.6 billion.The company’s revenue has maintained double-digit growth for 18 years (YoY + 12.89%); of which, the sales of general books and teaching materials have developed steadily, with a total income of 43.08 million yuan (YoY + 0.89%), accounting for 43 of total revenue.82%; education services such as education equipment and cultural supplies continued to grow, with revenue of 22.9.8 billion (+ 8% year-on-year.49%), accounting for 23.38%; supply chain and logistics businesses show high growth (YoY + 156.74%); merchandise trade business contracted, accounting for 9% of total revenue.92% (YoY-3.24pct), the main structure is optimized, and the development of the main business is generally better.The margin of the company’s profit margin was slightly increased, mainly due to the 18 years of asset impairment losses increasing by 0 every year.Due to the impact of US $ 9.7 billion, of which overdue depreciation of investment in wealth management products of self-funded funds was made.560,000 yuan, the popular culture book accrued goodwill impairment of 0.13 trillion, and accrued long-term equity investment impairment of 0.2.4 billion. 2. The company continued to deepen the education service business, the stable development of sales of textbooks, education equipment, and cultural goods sales and other diversified education service businesses maintained growth, the competitiveness outside the province increased, and digital education products made progress.The company has the only textbook distribution qualification in Anhui Province, and undertakes the textbook distribution in the compulsory education stage in Anhui Province. At the same time, it provides teaching aids, educational equipment, and educational information to primary and secondary schools and teachers and students in the province through a relatively complete education service network and education service commissioner system.Related education services such as education, digital education products, quality education courses, etc .; and actively expand the education service business of colleges and universities, and other provinces, and diversify the education service system.Develop business areas around education services, develop high school and pre-school programs in multiple locations in Fuyang, Huaibei, Bengbu, and Luzhou. Companies in Huaibei, Suzhou, Tongling and other cities have successfully developed new types of comprehensive education services such as school uniforms and campus catering.In addition, the company’s education service business continues to improve its cross-regional competitiveness, and its customers cover more than ten provinces and cities including Shandong, Jiangsu, Jiangxi, and Fujian.In 18 years, the income of education equipment and multimedia business increased by 9 years.82%, the total income of education service-related businesses is 37 trillion, an annual increase of 5.2%. 3. The company has continued to improve its distribution network, the number of outlets has continued to grow, the construction of a diversified and expanded distribution system, and the upgrade and innovation of distribution channels have been established. At the same time, a modern logistics system has been established to actively expand the upstream and downstream supply chain logistics business.The company has merged a complete publication distribution and service system covering the entire urban and rural areas of Anhui Province. It has 617 distribution outlets in Anhui, Jiangsu, Shanghai, Beijing and other places, and has established “Xinhua Bookstore” and “Reading + Shared Bookstore”.”Foreword and Postscript”, “Reading Life”, “Reading Club” and other multi-distribution networks; meanwhile, continue to promote “channel terminal integration” and service standardization construction, and the Education Service Commissioner team will personally serve school teachers and students’ parents for a long time.The company’s shared bookstore created a standardized brand output model. 4. The company’s expenses were effectively controlled, and the sales expense ratio and management expense ratio continued to decline; the net operating cash flow increased significantly, and the account had sufficient funds.The company’s three-fee rate has continued to decline in recent years, and the three-fee rate in 2018 was 10.46% (YoY-0.26pct), selling expense ratio 7.01% (YoY-0.25pct), management expense ratio 4.8% (YoY-0.35pct).Net operating cash flow for 18 years 5.890,000 yuan, an increase of 316 in ten years.49%; by the end of the year, the company had 59 in cash.7.4 billion. 5. Profit forecast: We expect the company’s net profit attributable to its mothers to be 19 to 21 years respectively.76/9.30/9.7.9 billion (the company’s three-year REITS project was completed in 18 years, and the income from non-current asset disposal in 2016-18 was 3 respectively.92/4.18/4.3.9 billion US dollars, non-net profit deduction is not affected, it is not expected to be carried out in 19 years, will not affect the stable development of the main business), the corresponding EPS is 0.44/0.47/0.49 yuan, corresponding PE is 18/17 / 16X. Risk reminder: policy risk, policy guidance to reduce student’s burden, teaching materials to support business development speed.Risks of technological progress, development of digitalization and education informatization, and changes in the traditional book business landscape.The decline in the birth rate, the decline in the number of new students, and the decline in the number of people have led to a decline in overall demand for books and a downside risk to the book industry.

Jiangsu Shentong (002438): Interim report performance exceeded expectations Expected high-speed growth of costs significantly controlled

Jiangsu Shentong (002438): Interim report performance exceeded expectations Expected high-speed growth of costs significantly 杭州桑拿网 controlled

2019 Interim Report Results Exceed Expectations The company announced its 2019 Interim Report results: Revenue 7.

84 ppm, an increase of 54 in ten years.

33%; net profit attributable to mother 0.

920,000 yuan, corresponding to a profit of 0.

19 yuan, an annual increase of 128.

11%, benefiting from supply-side reforms and the recognition of revenue from nuclear power orders, as well as the strengthening of the company’s expense rate control, the company’s interim report performance exceeded the market and our expectations.

The development trend has benefited from supply-side reforms and revenue from nuclear power order confirmations. The company’s revenue grew faster than expected and profitability remained at a high level.

Metallurgy: the company’s metallurgical industry revenue in the first 南京夜网 half of the year 2.

56 ‰, 70% growth in ten years, gross profit margin 34.

50%, ten-year average 1.

At 34ppt, the business’s unexpected growth was mainly due to the country’s implementation of industry supply-side reforms. In order to achieve ultra-low emissions, the valves required for technological transformation projects increased.

Nuclear power: The company’s nuclear power industry revenue in the first half of the year 2.

10 ‰, 54% growth in ten years, gross profit margin 49.

14%, an annual increase of 5.

70 ppt, the rapid growth of its business is mainly due to the prior period of nuclear power valve orders reported and confirmed revenue.

Energy: The company’s energy industry revenue in the first half of the year 2.

71 ‰, 61% growth in ten years, gross profit margin of 15.

53%, an annual increase of 1.

33%, the growth driver also comes from the increase in demand for valve products brought by supply-side reforms.

The company’s expense ratio in the first half of the year was 19.

4%, annual budget 4.

0ppt, gross margin temporarily increased by 1.

0ppt, net profit margin is increased by 3.

8ppt, improving profitability.

The company’s sales expense ratio in the first half of the year was 9.

82%, ten years zero.

21ppt; management expense ratio 4.

52%, R & D expense ratio 3.

90%, management plus R & D expense rate is 3 per quarter.

41ppt; financial expense ratio 1.

13%, zero for ten years.


Driven by nuclear power and energy business, gross profit margin reached 33.

06%, a year up 1.


With the improvement of gross profit margin and the convergence of expense ratio, the company’s net profit reached 11 in the first half of the year.

71%, an increase of 3 a year.

8ppt, significantly improved profitability. Earnings Forecast and Estimates Due to strong company demand, abundant orders on hand, and good expense ratio control, we have raised our net profit for 2019/2020 by 8.

5% / 9.

0% to 1.

One in five billion.

7.3 billion.

The current contradiction corresponds to 23 in 2019/2020.


5 times price-earnings ratio.

We maintain our Outperform rating and 9.

Target price of 10 yuan, corresponding to 29.

0 times 2019 P / E ratio and 25.

6 The price-to-earnings ratio in 2020 will continue to be 24.

8% upside.

Risk Nuclear power projects are progressing less than expected, and downstream demand is less than expected.

AVIC Shen Fei (600760): Steady growth in 18 years of performance continues to be bullish on mass production of new fighters

AVIC Shen Fei (600760): Steady growth in 18 years of performance continues to be bullish on mass production of new fighters

Event: The company released its 2018 annual report.

In 2018, the company achieved revenue of 201.

51 ppm, a 10-year increase3.

56%, realizing net profit attributable to mother 7.

43 ppm, a five-year increase of 5.

16%, the corresponding return is 0.

53 yuan / share.

Comments: 1) Reported that the strategic company achieved revenue of 201.

51 ppm, a 10-year increase3.

56%, net profit attributable to mother 7.

43 ppm, a five-year increase of 5.


Among them, the company’s main industry aviation manufacturing industry achieved operating income of 198.

08 million yuan, an increase of 9 in ten years.


Revenue from other businesses 1.

44 trillion, a decrease of 87 a year.


In 2018, the company’s business plan was successfully completed. Thanks to the balanced production strategy, through the elaboration of detailed plans, the strengthening of equipment procurement, and the supporting control of parts and components, it was gradually completed to ensure the smooth completion of the annual business plan.

2) All the company’s businesses are carried out by its subsidiary Shen Fei Company, and it is reported that the merger of Shen Fei Company has achieved a revenue of 201.

51 ppm, a ten-year increase of 9.

06%, achieving a net profit of 7.

45 ppm, an increase of 14 years.


The operating income and profit of the listed company exceeded the scale of Shenfei, a wholly-owned subsidiary, due to the company’s major asset reorganization in 2017 and the impact of its acquisition of business.

3) Reported that the growth rate of net profit attributable to a series of companies was slightly higher than the growth rate of operating income, mainly due to the decrease in sales expenses by 56 compared with 杭州桑拿 the same period of the previous year.

18%, administrative expenses decreased by 11 compared with the same period last year.

42%, financial expenses decreased by 356 compared with the same period last year.


The decrease in selling expenses and management expenses was mainly due to the placement of business in the previous year, and the significant decrease in financial expenses was due to the increase in net interest income.

4) The book value of inventory at the end of the reporting period is 97.

70 ppm, an increase of 23 at the end of the previous period.


The book value of the work in process is 77.

70 trillion, an increase of 37 earlier.

69%; book value of raw materials 19.

9.6 billion, an increase of 11 from the beginning of the period.

07%, mainly due to the increase in the inventory of production and delivery of product reserves in the next year, reflecting the company’s good production of aviation products last year, some products have formed output value but have not yet been delivered. With the delivery of aviation products in 2019, the company’s aviation equipment performance is expected to improve steadily in the future.

The company is an important R & D and production base for military fighters and will continue to benefit from the peak of military aircraft 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 annual defense budget for 2018 has exceeded one.

1 trillion yuan, the growth rate rose to 8 in ten years.


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.

To benchmark the intergenerational composition structure of American fighters, and considering the domestic replacement and installation requirements for third and fourth generation aircraft, the army’s demand for various types of fighters including Shen Fei and Cheng Fei is expected to exceed 1,000 in the next 10-15 years.
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 a PE of 55/44 / 38X in 2019/20/21, giving the company a “Recommended” rating.

Risk reminder: military aircraft installation is less than expected, structural adjustment of military expenditure

Penghua Fund won three championships in stock base, mixed base and QDII debt base in 2019

Penghua Fund won three championships in stock base, mixed base and QDII debt base in 2019
Penghua Fund won the three semi-annual championships of QDII debt base in 2019, and the initiative to invest in stocks ranked among the best. Galaxy Securities released the Evaluation of Public Fund Manager’s Stock Investment Management Capacity (First Half of 2019).The list shows that Penghua Fund ranks 4th among the 108 fund companies that have been selected and is also the 1st fund manager in the “Old Ten” camp.Slightly different, in the first half of 2019, a total of 37 equity funds belonging to Penghua Funds exceeded 20%, 23 bond funds returned more than 3%, and multiple businesses have blossomed in full.The three major debt-based champions demonstrate the superior strength of established fund companies.  I. Type of stock: the fourth place in the stock’s active investment ability, winning the stock base, and the mixed base double champion. According to the list of “Public Fund Manager’s Stock Investment Management Ability Evaluation (First Half of 2019)” released by Galaxy Securities, part of Penghua Fund25 stock funds participated in the review, with 31.92% of the stock investment actively manages the return rate, ranking fourth among the 108 fund companies selected by alternatives, and it is also the only fund manager listed in the “Old Ten” camp.  According to Galaxy Securities data, Penghua Pension Industry Stock (000854) was 54.The yield of 70% ranks first in “standard stock funds”, and the performance of similar funds has increased by an average of 25 this year.28%; Penghua China 50 mixed (160605) to 54.The return rate of 54% ranks first in the “general partial stock fund”, and the performance of similar funds has increased by an average of 22 this year.twenty one%.  In addition, Penghua Fund ranked more than 10 active equity funds in the same period. The types include standard stock funds (type A), ordinary partial stock funds (type A), flexible allocation funds, etc.Strong investment strength.  Second, the 深圳spa会所 index fund: Penghua China Securities is ranked second in the industry index fund in the passive index investment direction, Penghua belongs to multiple index products and has obtained good returns that closely follow the index.According to Galaxy data statistics, as of June 28, Penghua Fund belongs to a total of 12 passive index funds with a return rate of more than 20% in the first half of the year. Penghua CSI 800 Securities Insurance and Penghua CSI All-Shares Securities Company and other index fundsOver the same period the return was over 35%.It is worth mentioning that, thanks to the obvious rise in liquor stocks this year, the only Penghua CSI Securities Index Fund in the market that tracks the CSI Liquor Index has a return of 66 during the year.71%, ranking second among 98 similar funds.  Third, bond funds: 22 funds with semi-annual returns of more than 3%, Penghua Fengrong ranked third in the same class and many of Penghua’s many bond funds also performed well. According to Galaxy Securities statistics, Penghua in the first half of 2019The fund has a total of 23 debt-based bases with a first-quarter income of more than 3%, of which Penghua Convertible Bonds (000297) yielded 14 in the first quarter.70%, ranking in the top 1/3 of its kind; Penghua Fengrong regularly opens bonds (004024) to 6.With a yield of 24%, it ranks 3rd in the “Regular Open Ordinary Bond Funds”, and the performance of similar funds has increased by an average of 2 this year.50%.  Fourth, QDII: The currency share of Penghua ‘s global high-yield bonds and the US dollar share championship are particularly worth mentioning. After investing in overseas markets in the first quarter of this year, QDII topped both QDII fund returns.China ‘s global high-yield debt renminbi / dollar share once again won the “double crown” of collective income.Galaxy data also show that in the first half of this year, Penghua’s global high-yield debt (QDII) exchange rate of RMB (000290) and (US dollar share) (001876) yields were 10 respectively.86% and 10.60%, far exceeding the average return of similar funds for the same period 6.65% and 6.45%.

FAW Car (000800): Restructuring announces acceleration of FAW integration

FAW Car (000800): Restructuring announces acceleration of FAW integration

Event: The company announced the reorganization plan, intending to transfer all assets except the finance company, Xinan Insurance’s equity and some retained assets to Sedan Co., Ltd. as a disposable asset, and the 100% equity of FAW Jiefang held by FAW shares.The value part is replaced.

FAW Liberated 100% equity for 270.

10,000 yuan, 50% of the car’s limited 100% equity.

9 trillion, a difference of 219.

200 million, of which 199.

200 million consideration by the company at 6.

68 yuan / share issuance in the form of payment, the remaining 2 billion consideration is paid in cash; the company plans to raise funds to support no more than 3.5 billion yuan.

The company’s commitment to FAW Co., Ltd. for the investment in patents and know-how in the assets for 2019-2022 is 5, respectively.

700 million, 6.

600 million, 6.

900 million and 1.

1 ppm, if it fails to meet the commitment, it will be compensated annually through share payment.

Substantial progress has been made in resolving inter-industry competition, and more integration is expected. After the completion of the company’s asset replacement, the passenger car business is divested from the listed company. FAW ‘s long-standing inter-industry competition has taken a key step.Car listing platform.

With the gradual smoothing of the fair within the FAW Group, we believe that the FAW state-owned enterprise reform is expected to accelerate, or open the prelude to the overall listing, and then FAW shares may give up control 杭州桑拿 of FAW Xiali, waiting for a solution to the FAW-Volkswagen share dispute, and then allThe car business may be integrated and listed again.

Revitalizing the inventory to create an increase, heavy truck leader appeared in the capital market FAW Jiefang is the absolute leader in the domestic heavy truck industry, one of the highest quality assets in the FAW Group.

The heavy truck market is concentrated, and FAW Jiefang’s market share has been maintained at more than 20%, ranking first in the industry for a long time. From 2018 to 2019Q1, FAW Jiefang achieved business 726.

500 million, 257.

800 million, net profit attributable to mother 14.

500 million, 7.

10,000 yuan.

The Group injected lucrative commercial vehicle business into listed companies, which will effectively revitalize the existing high-quality existing assets, further create increments for shareholders, and sound the horn of state-owned enterprise reform.

Profit forecast and investment recommendations We expect FAW Jiefang to realize a net profit attributable to its mother of USD 3-3.5 billion in 2019. Considering the investment income of the financial company and Xinan Insurance, FAW Car’s revenue and profits are 35-40 trillion.Estimated value, considering a certain state-owned enterprise reform premium, given a valuation of 12 times PE. After the restructuring, the reasonable market value of FAW Car is expected to be 42-48 billion US dollars, and the total equity considering supporting financing is expected to be 50.

400 million shares, corresponding to the previous 8.

33 yuan-9.

52 yuan, the company’s rating downgraded to “overweight.”

Risk warning: Asset restructuring and integration are worse than expected; heavy truck market prosperity changes