Jinfa Technology (600143) Annual Report Comments: Annual Report Exceeds Expectations 2019Q1 Cost Pressure Improves and Mitigates

Jinfa Technology (600143) Annual Report Comments: Annual Report Exceeds Expectations 2019Q1 Cost Pressure Improves and Mitigates
The annual report performance was lower than expected. Net profit in the first quarter of 2019 exceeded the increase by 21%. Jinfa Technology released the 2018 annual report, and the company achieved revenue of 253.2 trillion, an increase of 9 in ten years.4%, net profit 6.2.4 billion (net of non-net profit 3).31 ‰), an increase of 13.9% (after deducting non-depreciation, increase by 12.0%), lower than market expectations.Follow 27.1.7 billion of the latest equity calculation, the corresponding EPS is 0.23 yuan.Q4 achieved revenue of 67.700 million, an increase of 3 in ten years.3%, net profit -0.3 billion (2017Q4 was 0.9 billion), it 无锡夜网 is planned to pay 1 yuan (including tax) for every 10 shares.The company also announced that it achieved revenue of 59 in Q1 2019.0 million yuan, an increase of 6.5%, net profit 2.25 trillion, an increase of 21 a year.2%.We expect the company’s EPS for 2019-2021 to be 0.33/0.41/0.50 yuan, maintain “Buy” rating. The rise in volume and price led to dynamic performance growth, and asset impairment losses dragged down Q4 performance in 2018.1 for the first time, higher than the added value 3.3%, of which 134 were sales of modified plastics.6 Initially, the average sales price rose by 6% to 1.330,000 yuan / ton; sales of fully biodegradable plastics / special engineering plastics / environmental protection and high performance recycled plastics increased by 91% / 61% / 69% to 2 respectively.6/0.8/10.8In the early stage, the average 南京夜网论坛 sales price changed by 2% /-3% / 12% every year, driving the company’s long-term performance growth.The company’s comprehensive gross profit margin for 2018 was 13.5%, a slight decrease of 0 previously.1pct, because the main raw material substitution system resin / engineering resin 18Q4 purchase average price increased by 14% / 14% from Q3, Q4 company’s gross profit decreased / decreased by 0 respectively.9pct / 0.6pct to 12.7%.In addition, the company accrued zero asset impairment losses in Q4.60 ppm (mainly bad debt losses), resulting in a single quarter of expected drag on performance. The cost rate during 2018 was generally stable.4%, basically flat for one year.Among them, the sales expense rate drops by 0 every year.4pct to 2.6%, the financial expense rate rose by 0 per second.5 points to 1.9%, mainly due to increased interest expenses and exchange losses.In addition, the company realized non-recurring benefits2.930,000 yuan, mainly for various government subsidies (3.4 billion). The cost pressure has eased, and Q1 2019 results have increased. In the first quarter of 2019, the company’s sales of modified plastics / fully biodegradable plastics / environmentally friendly and efficient recycled plastics increased by 3% / 48% / 27% to 29.3/0.95/2.With a budget of 91, the average sales price changes by -6% /-1% / 0% each year, and the company’s revenue slightly increases by 7% to $ 5.9 billion.Raw material substitution resins / polystyrene resins / engineering resins Q1 average purchase prices fell by 3% / 15% / 25%, the company’s cost pressure eased, and the overall gross profit rate fell by 0.4 points to 15.0%. The international layout is accelerating, and new material products are expected to gradually increase the company’s overseas business layout. The main structure of the new plant of the Indian blonde Pune base has been completed and is expected to be put into use in 2019H1.In terms of projects under construction, the company expects to produce 1 ton of semi-aromatic polyamide projects per year, and 3,000 tons of thermotropic liquid crystal polymer projects will be put into production in H1 in 2019. We expect that the subsequent volume of related products is expected to drive the company’s performance to continue to improve. Maintaining the “Buy” rating. Considering that the demand for automotive and other terminal equipment is weak and cost-side pressure is still alive, we lower the company’s 2019-2020 net profit forecast to 9.0/11.2 ppm (original value 10).5/13.100 million), with a net profit forecast of 13 in 2021.700 million, EPS is 0.33/0.41/0.50 yuan, the combined level of comparable companies (average 21 times PE in 2019), giving the company 21-24 times PE in 2019, corresponding to a target price of 6.93-7.92 yuan (original value 6).63-7.80 yuan), maintain “Buy” rating. Risk warning: New business development is less than expected; downstream demand expansion; raw material price risk.