Jiuli Special Material (002318): Net profit attributable to mother increased by 80% in ten years, gross profit margin rose to 31%

Jiuli Special Material (002318): Net profit attributable to mother increased by 80% in ten years, gross profit margin rose to 31%

Investment Highlights: Event: The company announced the third quarter report for 2019 and achieved net profit attributable to mothers in the first three quarters3.

8.8 billion yuan.

The company achieved operating income of 32 in the first three quarters.

81 ‰, an increase of 9 per year.

90%, net profit attributable to mothers3.

88 ppm, an increase of 79 per year.

93%.

Among them, the company achieved operating income in the third quarter11.

82 ppm, an increase of 14 per year.

06%, up 8 from the previous month.

65%, realized net profit attributable to mother 1.

770,000 yuan, an annual increase of 112.

74%, up 27.

15%.

Opinion: The company expects that net profit attributable to mothers will increase by 60% -80% per year in 2019.

The company announced its 2019 performance guidance and expects to achieve net profit attributable to mothers in 20194.

86-5.

470,000 yuan, an annual increase of 60% -80%.

The main reasons for the increase in performance are: ① investment in downstream oil and gas and other industries continues to pick up, and the company has sufficient orders in hand; ② the company promotes the transformation and upgrading of its product structure and increases the output of high-end products.

The company’s gross profit margin rose to 31 in the third quarter.

19%, net profit margin increased to 15.

09%.

The company’s gross profit margin continued to increase to 31 in the third quarter.

19%, net 杭州桑拿网 profit margin increased to 15.

09%, continued to improve steadily at about the beginning.

The company’s market share has ranked first in the domestic industry for many years, and the industry leader is obvious. We believe that the improvement of the downstream downstream boom, the company’s bargaining power has increased, and the gross profit margin has continued to increase.

The company changed the implementation location of 1,000 tons of aerospace materials and products.

The company’s 1,000-ton aerospace materials and products project changed its implementation site. The original site of XSS-02-02-18A in Yangjiabu South Unit of Huzhou City was transformed from the original Jiuli Stainless Steel Industrial Park in Balidian Town, Wuxing District, Huzhou City, mainly due toOptimizing resource sharing mechanism and process 杭州桑拿 layout considerations can effectively reduce production costs and improve management efficiency.

Dating strategic partner Yongxing Materials.

The company dated Yongxing Materials as a long-term stable supply chain partner. It plans to purchase shares of Yongxing Materials for no more than 600 million U.S. dollars, holding no less than 10% and no more than 20% of the total share capital of Yongxing Materials.

We believe that Yongxing Material is the company’s raw material supplier. This strategic investment will effectively optimize the company’s upstream and downstream management system, improve resource allocation efficiency, and have a more stable source of raw materials.

Investment suggestion: A certainty breakthrough in performance growth and a “continuous market” rating.

Based on our calculations, we expect the company to achieve operating income of 44-2021 respectively.

67, 46.

93, 48.

880,000 yuan, achieving net profit attributable to mother 5.

43,5.

86, 6.28 ppm, corresponding EPS is 0.

64, 0.

70, 0.

75 yuan.

Based on comparable companies and historical premium levels, we give companies 16-20 times dynamic PE in 2019 with a reasonable value range of 10.

24-12.

80 yuan, given the “preliminary market” rating.

risk warning.

The prosperity of the oil and gas industry has declined; orders in hand have expanded significantly; and the economy has grown significantly.