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Equity ETFs have reached 600 billion in the past year, soaring by about 70%

Equity ETFs have reached 600 billion in the past year, soaring by about 70%
When the global trading open-end index fund (ETF) first broke through 6 trillion US dollars, the latest size of domestic stock ETFs is also approaching 600 billion yuan, an increase of about 70% in the past year.Among them, Huaxia, Nanfang, Huatai Barry, E Fund and other fund companies are leading in the mainstream wide-based ETF field, and their flagship products are more than 40 billion U.S. dollars; 10 fund managers have entered the market in the past year, and the growth is rapid.  The size of stock ETFs is approaching 600 billion. In the context of the outstanding profitability of the A-share market in 2019 and the widespread spread of passive investment concepts, the size of domestic stock ETFs has continued to grow.  As of January 10, there were 43 fund managers in the market with a total of 238 stock ETF products, with a fund net worth of 5934.5.9 billion, approaching the 600 billion mark.Among them, Huaxia Fund took the lead, with the ETF of its subsidiary stocks reaching 1197.700 million, accounting for more than 20%; E Fund, Southern Fund management scale of more than 50 billion, ranking second in the ranks; Huatai Bairui, Jiashi, Bo Shi and other fund companies’ stock ETFs at 200 billion?Between 50 billion yuan, the stock ETFs of fund companies such as Wells Fargo, Warburg, Ping An, and ICBC Credit Suisse exceeded 10 billion.  From the scale growth list, since last year, the scale of ETFs of Castrol, Huaxia, and E Fund stocks have all increased by more than 20 billion US dollars.  It is obvious that in the stock ETF market, 10 fund managers including Taikang Asset, Tianhong Fund and Industrial Fund have entered the market since last year. Among them, Taikang Asset and Tianhong Fund’s latest stock ETF scale has been completed.Reached more than 7 billion, growing rapidly.  Three Broad-Based ETFs Exceeded 40 Billion Since the listing of the Shanghai and Shenzhen 300 ETFs on the Shanghai Stock Exchange last December 23, Huatai Borui Shanghai and Shenzhen 300 ETFs have been actively trading, with three-week turnover of 74 trillion, 82 trillion, and 102 trillion, respectively, showing a continuous increaseThe momentum, and last week exceeded the tens of billions of dollars mark, 四川耍耍网 becoming the largest weekly stock ETF.Its size is also from 370.1.6 billion to 435.500 million US dollars, a big increase of 6.5 billion US dollars in just 3 weeks, an increase of up to 17.65%.During the same period, the size of the Shanghai and Shenzhen 300 ETFs owned by Huaxia and Harvest Funds each increased by 25.500 million, 35.500 million yuan, an increase of 8.6%, 14.5%, the total scale rose to 31.2 billion yuan, 28.1 billion yuan.  As of January 10, Huatai Borui CSI 300 ETF and Southern China Securities 500 ETF, Huaxia SSE 50 ETF jointly ranked US $ 40 billion, South China, Huaxia, and Huatai Bairui Fund were in the mainstream of CSI 500, Shanghai 50, Shanghai and Shenzhen 300, etc.Leading advantages are formed in the wide-base index field.  On the whole, there are currently 13 stock ETFs in the 10 billion product clubs.Among them, Hua’an Fund and E Fund Fund respectively have advantages in the SSE 180 and GEM pointing fields. The fund sizes are 20 billion and 17.6 billion yuan.As the only industry ETF on the list, the size of the Cathay Securities China Securities Index ETF also exceeds US $ 15 billion.The pulse growth of the brokerage index in the past two years has made this leading index of the brokerage firm popular with investors.  In fact, 2019 is also a year of great development for the overseas ETF market. The global ETF scale broke the US $ 6 trillion mark for the first time in November 2019.  Taking the United States, the world’s largest ETF market, as an example, net inflows in 2019 were US $ 326.3 billion, exceeding US $ 315.4 billion in 2018, second only to US $ 476.1 billion in 2017.The size of the ETF currently listed in the United States is 4.At $ 4 trillion, BlackRock (part of the ASUS “iShares” product line) and Vanguard together account for 65% of the market.In addition, the European ETF market had a net inflow of US $ 120 billion last year, and its scale exceeded US $ 1 trillion for the first time. The global ETF boom is evident.  Bank of America said that the ETF market is growing strongly. One of the first is the increasing number of advantages in indicators such as efficiency, indicators, liquidity and selectivity.Bank of America data also shows that in the next 10 years, the size of ETFs may increase by 10 times, reaching $ 50 trillion.

Huanxu Electronics (601231): Peak season revenue rises month by month, Q3 revenue rises 22% in ten years

Huanxu Electronics (601231): Peak season revenue rises month by month, Q3 revenue rises 22% in ten years

Announcement: Huanxu Electronics’ operating income in September 2019 was 41.

700 million, five years growth.

55%, an increase of 6 in the previous August.

60%; cumulative operating income from January to September 2019 was 259.

7 ppm, an increase of 17 in ten years.

27%; the company’s 2019Q3 operating income was 113.

7 ppm, an increase of 21 in ten years.

68%, an increase of 64 from the previous month.


Q2 single quarter revenue increased by 5% per year, Q3 single quarter revenue increased by 22% longer.

Q2 revenue was 69.

3 ‰, a year-on-year increase of 5%, a month-on-month decrease of 10%.

In the first half of the year, industrial products and consumer electronics products experienced the 杭州桑拿网 largest increase, finally: 1) Industrial products added significant customers in 2018, and customer orders continued to increase in the first half of this year; 2) Wearable products orders increased significantly in Q1 this year, butOff-season.

However, computer products and storage products were less affected by the external environment and customer orders, and the operating income in the reporting period continued to show levels.

July revenue was 32.

8 billion, an annual increase of 37.

5%, nearly one month earlier than last year, entered the peak production season. In August and September, revenues increased by 19% and 7%, respectively.

Since the peak season for electronic products, especially wearable products, is usually Q4, 4Q2019 revenue is expected to increase slightly from the previous month.

Affected 北京桑拿 by the product structure, operating profit margin in the second quarter fell by 1 year-on-year.

2pct, Q3 is expected to improve.

Q2 gross profit margin declined slightly due to the rise in the structure of consumer and industrial products.

The increase and decrease of management expenses are mainly due to the company’s expansion of operating scale and overseas bases in 2019. The proportion of overseas net assets has increased from 35% to 39% at the end of 2018, which has significantly increased the related personnel expenses quarterly.2.

4%, the total expense ratio of single quarter management expenses and research and development expenses increased by 0.


Based on the above two major factors, the operating profit margin is 2.

64%, down by 1 every year.


Q3 revenue growth is mainly due to new consumer electronics, industrial products, etc. According to the product structure, it is expected that Q3 profitability will be promoted by transformation.

For middle and senior managers, core technical personnel are granted equity incentives.

In August 2019, Huanxu Electronic Incentive Program intends to grant 22.4 million stock subsidies to the incentive objects, accounting for approximately 21 of the company’s equity portfolio on the date of the announcement of the incentive program.

7.6 billion shares of 1.


Of these, 1,792 were awarded for the first time.

200,000 copies, preset 447.

800,000 copies, accounting for 19 of the maximum rights granted this time.

99%, the target of budget incentives shall be determined within 12 months after the incentive plan is adopted by the shareholders meeting.

526 middle-level core managers and core business (technical) personnel are the main incentive objects, accounting for 72 of this incentive strength.

86%. Maintain profit forecast and maintain overweight rating.

Revenue growth in the third quarter slightly exceeded expectations.

Maintain 2019/2020/2021 attributable net profit forecast13.



800 million.

Although the profitability of overseas projects has been slowly increasing, we are optimistic about the application of Universal Asahi ‘s SiP packaging in the miniaturization of consumer electronics products. The current corresponding corresponding 2019/2020 is only 23/20 times PE, maintaining an overweight rating.

Hanchuan Intelligent (688022): Leading automotive electronics manufacturing equipment company will benefit from high industry prosperity for a long time-Hanchuan Intelligent Pricing Report

Hanchuan Intelligent (688022): Leading automotive electronics manufacturing equipment company will benefit from high industry prosperity for a long time-Hanchuan Intelligent Pricing Report

Report evaluation: Taking into account the rapid growth of the company’s industry and the valuation of comparable companies, we believe that the maximum PE valuation of Hanchuan Intelligent in 2019 is 43 times, and its PE in 2019 is estimated to exceed that of 3 non-standard automation companies.The average valuation is 33 times, so the company’s 2019 PE estimate is (33, 43) times, corresponding to a market value of (32.


57) billion yuan, based on 108 million shares, the pricing price is (30.

25, 39.

4) Yuan.

(1) A rapidly growing provider of intelligent manufacturing equipment, focusing on the automotive electronics sector.

Master a variety of core “universal” technologies, focusing on automotive electronics intelligent manufacturing equipment, and gradually develop new energy equipment and medical intelligent manufacturing equipment in various fields.

Most of the company’s downstream customers are leading companies in the industry, and they have been recognized by leading companies in various fields, demonstrating that the company’s technological strength belongs to the leading level in the industry.Seven are corporate customers.

The top five customers are mostly concentrated in the field of automotive electronics, and most of them show a rapid growth trend. Automotive electronics follows the functional classification into four major categories. The company involved, mainly based on connector intelligent manufacturing equipment, converted into customer initial approval.The single amount of orders received by the company has gradually increased.

(2) The company will fully benefit from the rapid growth of the automotive electronics industry.

The automotive electronics manufacturing equipment industry will be in a rapid development trend for a long period of time in the future, mainly benefiting from two aspects: globally and in high value-added areas, it is divided up by leading players.

The company has entered the supplier system of many manufacturers in the field of automotive electronics. Among these customers, the company’s products occupy a relatively low amount of similar equipment in the customer and can improve the space.

Estimate analysis and investment recommendations: The company’s overall revenue for 杭州桑拿网 2019-2021 is expected to be 6 respectively.

00, 8.

37 and 11.

600 million, net profit attributable to mothers is 0.

99, 1.

41 and 2.

US $ 0.5 billion. Taking into account the estimates of comparable companies and the growth rate of the industry, we believe that the company’s 2019 PE estimate is (33,43) times, corresponding to a market value of (32).


57) billion yuan, based on 108 million shares, the pricing price is (30.

25, 39.

4) Yuan.
Risk warning: the growth rate of new energy vehicle sales declines; the expansion of capital expenditure in the automotive electronics industry.

Huaxia Happiness (600340): Active replenishment and restructuring and debt structure continued to be optimized

Huaxia Happiness (600340): Active replenishment and restructuring and debt structure continued to be optimized

Key points of the report Description On January 14, 2020, the company ‘s wholly-owned overseas subsidiary completed the issuance of US $ 1.2 billion of advanced unsecured fixed-rate bonds overseas.

Incidents commented that the initial sales improved, or the lack of soil reserves and the structural layout.

Kerer sales data shows that the company actually realized $ 145.4 billion in 2019, a year-on-year decrease of 10%.

67%; the sales area of 12.36 million square meters, exceeding the decline of 17.


The decline in initial sales may be related to the previous lack of soil reserves and the relatively high proportion of surrounding Beijing.

In recent years, the company has intensified the expansion of the non-environmental areas, and the sales contribution of the non-environmental areas has also increased, and the structure has continued to optimize.

In addition, the company’s industrial park replication in other places has also been very effective, forming an important support for the company’s profitability.

Actively replenish stocks and adjust the structure at the same time, and control the debt burden under better sales receivables.

In consideration of the long-term sales continuity, the company will actively acquire land in 2019 to replenish its value, and gradually expand the land acquisition 421.

280,000 flats, 1 of the land area taken over in the ten years of 2018.

63 times; take the total price of 311.

500,000 yuan, an increase of 203 in ten years.


Based on the long-term layout of the company, the company focuses on the optimization of its structure, such as the rejection of capital 116 in September 2019.

2.5 billion pounds won the Wuhan Binjiang CBD core area, laying a foundation for the company to explore the new business layout of central China with Wuhan as its core.

Despite the improvement in geographical strength, the company’s debt burden is still controllable under the recovery of sales, and the company’s net debt ratio in the third quarter of 2019 decreased from the middle of the year.

94pct to 202.


The debt structure continued to improve, and financing costs fell.

On January 14, 南宁桑拿 2020, the company’s overseas subsidiaries successfully issued US $ 1.2 billion of senior unsecured fixed-interest bonds to replace one-year internal and mid-term and long-term overseas debt, and the debt structure continued to improve.

Among them, the coupon rate of US $ 500 million 3-year bonds is 6.

90%; US $ 700 million 5-year bond coupon rate is 8.


Benefiting from Ping An’s shareholding and global interest rate cuts, the company’s financing costs have significantly improved (the par interest rate of the same type of 3-year US dollar bonds issued on April 10, 20197.

125%, 5-year US dollar bond coupon rate of 8.


Investment suggestion: Actively replenish stocks and adjust the structure simultaneously, and continuously optimize the debt structure.

The company actively replenishes the value of its 杭州桑拿网 products and actively adjusts its structure to take a long-term view; sales have improved, but the off-site replication has been effective, and the contribution of non-Beijing regions has provided effective buffers; the debt structure has continued to improve, and financing costs have fallen; and Ping An has been deeply bound.Financing and the development of commercial areas have many benefits.

It is estimated that the company’s net profit attributable to mothers in 2019-2021 will be 149, 202, and 27.1 billion, respectively, an increase of 27%, 35%, and 34%, corresponding to a PE of 5.

5 times, 4 times.

1X, 3.

0X, maintain “Buy” level.

Risk Warning: 1.

Uncertainty in real estate policy; 2.

The company may copy the progress off-site or have uncertainty.

Aerospace Electric (002025) 2019 Interim Report Review: Strong Revenue Growth Military Structure and Material Cost Affect Gross Margin

Aerospace 厦门夜网 Electric (002025) 2019 Interim Report Review: Strong Revenue Growth Military Structure and Material Cost Affect Gross Margin
The company released its 2019 Interim Report: Revenue 16.190,000 yuan, an increase of 38 in ten years.56%; net profit attributable to mother 1.8.7 billion, an annual increase of 19.17%; net profit after deduction to mother 1.740,000 yuan, an increase of 18 in ten years.17%, non-recurring gains and losses mainly come from government subsidies of 17 million yuan. Revenue for the first quarter of 20196.720,000 yuan, an increase of 39 in ten years.45%; net profit attributable to mother is 77.73 million yuan, an annual increase of 20.01%; the second quarter continued the high-growth trend in the first quarter with revenue of 9.48 ppm, an increase of 37 in ten years.95%, an increase of 41.07%, net profit attributable to mother 1.09 million yuan, an increase of 18 in ten years.58%, an increase of 40 from the previous month.23%, the absolute amount of revenue and profit in the second quarter hit a single quarter high. The company’s main sectors are scheduled to achieve rapid growth in revenue. At the same time, a newly established subsidiary, Guangdong Huajing, has consolidated revenue of 79.77 million yuan from March to June.Excluding the impact of Guangdong Huajing, the company achieved revenue of 15 in the first half of 2019.39 trillion US dollars, an annual increase of 31.67%; net profit attributable to mother 1.89 ppm, an increase of 20 in ten years.95%.In the first half of the year, the proportion of civilian products increased and the gross profit margin of civilian products surpassed that of high-end products; the increase in the supply price of precious metals and special chemical materials required for production led to faster cost growth than revenue, so the gross profit margin decreased in the first half of the year.38pct to 34.69%.Total period expenses 2.8.7 billion, an increase of only 9 per year.4%, 厦门夜网 operating efficiency has improved significantly. As the main industry-wide supporting enterprise for military products, the company is a decisive benefit target for compensatory procurement after the influence of military reform has been eliminated. It is an “integrator” for industry demand and a “weathervane” for prosperity. It will be even greater in 2019-2020Performance elasticity.We maintain our profit forecast for the company and expect the company’s net profit for 2019-2021.31/5.54/6.50 ppm corresponds to a PE of 29/23/19 times the closing price on August 19, maintaining the level of “prudent overweight”. Risk warning: Orders increase significantly after revenue recognition; industry competition intensifies, market share declines; weak capacity organization, performance releases fall short of expectations.

Crystal Optoelectronics (002273) Quarterly Review: R & D Expansion Continues to Grow Upstream and Downstream Joint R & D

Crystal Optoelectronics (002273) Quarterly Review: R & D Expansion Continues to Grow Upstream and Downstream Joint R & D

Event: On April 18, 2019, the company released the 2019 first quarter report and achieved operating income4.

890,000 yuan, an increase of 32 in ten years.

24%, achieving net profit attributable to the parent company of 0.

580,000 yuan, a decrease of 0 every year.


Opinion: Firmly recommend the company. As the leading optical track of domestic optical devices, the company relies on the existing film, technology deposition and competitive advantages in the cold processing field, accelerates technology and product innovation, and extends the product structure to sensing optical elements, semiconductor opticsComponents and other fields.

Actively cooperate closely with the upstream and downstream of the industrial chain, and promote the depth of cooperation through joint ventures, joint development, business cooperation and other modes to achieve mutual benefits and win-win results.

R & D investment continued to increase, and gross profit margins decreased.

In the first quarter of 2019, the company’s R & D promotion was 0.

3.2 billion, an increase of 40 every year.

42%, the company cooperates with customers in depth through various modes such as joint development and business cooperation to achieve mutual benefits and win-win results. At the same time, the company expands its R & D layout in the field of automotive electronics.

Automotive electronics contains a lot of human-computer interaction technologies. At present, the market opportunities for optical components and components are shifting. At present, cooperation opportunities are brought in multiple channels.

In terms of gross profit margin, the company achieved a gross profit margin of 18 in the first quarter.

86%, a decline of 7 per year.

28 points, down 6 from the previous month.

43 points.

The company’s business has a certain profit, the first quarter is the off-season, and the operating rate has decreased.

In addition, the LED industry is in a downward cycle, product prices have fallen sharply, and inadequate startup rates have led to a decline in the company’s gross profit margin.

Consumer electronics camera innovation enhances the value of the company’s single optical device.

The company develops and provides optical series products related to ambient light sensors, flood light sensors, distance light sensors, dot-matrix projectors, front and rear camera components and appearance parts according to market needs, providing customers with a cost-effective one-stop shop.Solutions and services for the optical business.

The company has entered the supply system of 3D imaging, under-screen fingerprints, periscope lenses, resins, exterior windows, etc., to enhance the value of the single machine, and simultaneously achieve the landing of multiple related optical products and application solutions.

The high-end intelligent machine 3Dsensing has entered a speed-up period, and the value of the single machine has increased. The company is an A-share company entering the 3Dsensing supply chain switch for large customers.

5G awakens VR / AR, the connected car ecosystem, and accelerates optical innovation.

The biggest increase of 5G is the increase in content capacity after the network speed is increased, which meets the requirements of VR / AR for network bandwidth and low latency. VR / AR application scenarios are expected to accompany the rapid landing of 5G. The company invested in the AR optical engine module company in 2016Lumus, which holds the company’s common stock and Class C preferred stock, lays out the top companies in the high-quality track.

In addition, the new form of on-board navigation brought by 5G will awaken the entire connected car ecosystem, and is expected to enable cars to achieve barrier-free networking. Optical products such as on-board cameras will become the information portal for connected cars, and it is expected to achieve stepwise growth.

Investment suggestion: The development of global consumer electronics products, especially the mobile phone industry, has gradually entered a stable period, and the increase has gradually increased. At the same time, the price of the company’s LED business has been severely reduced. Therefore, the company’s 19-20 year profit forecast is lowered by 7.


1.2 billion down to 6.


850,000 yuan, maintain “Buy” rating.

Risk warning: the boom of the mobile phone industry is expanding, the R & D progress is less than expected, and VR / AR is less than expected

Huamao Logistics (603128): Interim report slightly exceeds expectations

Huamao Logistics (603128): Interim report slightly exceeds expectations

The interim report slightly exceeded expectations, maintaining an “overweight” rating of 2Q19, and the company realized revenue of 24.

180,000 yuan (+7.

2%), net profit attributable to mother 1.

1.8 billion (+11.

9%), slightly exceeding our expectations of 1.

1.5 billion.

We maintain the company’s 19/20/21 profit forecast at 0.



48 yuan, corresponding to the current expectation of 20.



6X PE; Considering M & A expectations, the company is given 22-24X PE for 19 years with a target price range of 8.


75 yuan to maintain the “overweight” level.

The second quarter performance improved month-on-month, the interim report slightly exceeded expectations in 2Q19, and the company realized revenue of 24.

180,杭州桑拿000 yuan (+7.

2%), the growth rate increased by 6pp; the gross profit was 3.

1.3 billion (+8.

6%), the growth rate increased by 8pp MoM; net profit attributable to mother 1.

1.8 billion (+11.

9%), the growth rate increased by 23.

5pp, and slightly more than we expected 1.

1.5 billion; net profit after deduction to mother 1.

1.9 billion (+15.

6%), the growth rate increased by 14 compared with the previous quarter.


The gross profit growth of freight forwarding business was sluggish, and the improvement of non-forwarding business gross profit was still the company’s main source of profit. However, due to the global economic situation and Sino-US trade friction, the growth was significant.

In the first half of the year, the company achieved gross profit5.

6.2 billion (+4.

9%), of which gross profit of freight forwarding business3.

880,000 yuan (+7.

5%), gross profit of non-forwarding business1.

7.5 billion (-0.


In the freight forwarding business, air transportation revenue and sea transportation revenue fell twice respectively.

78% and an increase of 19.

86%, revenue from air transportation increased for the first time in 14 years, and core business operations were under pressure. The outbound acquisition is reasonable and expected to increase performance. On August 22, 2019, the company announced its intention to acquire 70% of the equity of Da’an International and Xuncheng International Air Freight Forwarding Business Group at a transaction consideration of approximately 6.

190,000 yuan (corresponding to a profit of about 8 in 18 years.

1X PE).

The target company is estimated to be reasonable and able to form synergy with the company’s cross-border e-commerce business.

As of 1H19, the company’s asset-liability ratio was only 24.

7%, monetary funds of about 1.2 billion, leverage has increased.

Assuming that the company completes the acquisition in cash, based on the 5% cash interest rate and the underlying 18-year profit estimate, it is expected to increase the company’s profit by 53 million yuan (14% of the 19-year forecast net profit).

Equity incentives have been released, and compound profit for exercise has increased by 15%. On April 22, 2019, the company increased its value to 5.

82 yuan / share grants 30 million equity incentives to 246 objects, covering the core executives of listed companies and major molecular companies.

According to the three-year exercise conditions (33% / 33% / 34% of exercise rights), the company’s compound growth rate of profits from 17 to 19/20/21 exceeded 15%; the distribution incentive coverage is wide and the incentive conditions are designedReasonable, can fully bind the interests of shareholders and shareholders.

The estimate is reasonable. Maintaining the “overweight” rating of China Trade Logistics’s slightly higher-than-expected report, excluding the thickening of outbound M & A performance, we maintain the company’s 19/20/21 0.



48 yuan profit forecast, corresponding to the current expectation of 20.



6X PE.

Comparable logistics enterprises corresponding to 19/20 Wind expected PE 16.


3X; Considering the outbound M & A expectation, we give Huamao Logistics 22-24X PE for 19 years (earlier estimated industry premium of 31% -43%) with a target price range of 8.


75 yuan (previous value was 10.


66 yuan), maintaining the “overweight” rating.

Risk reminder: Global economic forecast, UHV investment exceeds expectations, and outbound M & A falls short of expectations.

Pian Tsai Ying (600436) Review of major events: single largest price increase since listing 2020 performance promotion usher in an explosion

Pian Tsai Ying (600436) Review of major events: single largest price increase since listing 2020 performance promotion usher in an explosion

Matters: On January 20, 2020, the company issued an announcement that, for the main raw materials and labor costs of Pien Tze Huang products, the company decided to increase the retail price of Pien Tze Huang tablets to 590 yuan / capsule from the date of announcement.The price is increased by about 40 yuan / cap; the supply price in overseas markets is increased by about 5.

$ 80 per capsule.

Comment: The price increase is expected to directly increase the net profit of returnees in 20202.

0 ‰, 14 per year.


In the in-depth report of Pien Tze Huang released on January 14, 2020, we predicted that in 杭州夜网 2020, the domestic price of the “Pien Tze Huang Series” will increase by about 6%.

The price increase is 11.

9%, slightly higher than our expectations.

According to our Pianzai price increase model, the ex-factory price increased by 40 yuan to 375 yuan, an increase of 11.

9%. In 2020, the sales of the “Pien Tze Huang Series” will be about 577.

10,000 tablets, an increase of 18.

8%, strengthen the logic of rising volume and price.

Increased channel enthusiasm (10-year value-added of channel profits).

3%) to strengthen the logic of penetration enhancement.

The profit before the price increase was 195 yuan.

The price increase of 60 yuan this time, channel profits increased by 20 yuan, an increase of 10 a year.

3%, channel enthusiasm is enhanced, which is conducive to the improvement of national penetration.

According to our calculations, across the country, the demand for “Pien Tze Huang Series” liver disease drugs has penetrated into zero.

13%, 6% from 1% permeability.

7 times improvement space.

Infiltration and transformation under the demand of health care and self-use1.

98%, 4% from 10% permeability.

1x improvement space.

In mature markets in Fujian Province, the penetration rate of “Pien Tze Huang Series” liver disease medication demand is only 1.

76%, higher than the national average of 0.

13%, 4% from 10%.

7 times improvement space.

The target price for 2020 is 125.

5 yuan increased to 146.

2 yuan.

Taking into account the higher than expected price increase this time, strengthening the logic of rising volume and price, and increasing the penetration rate, and combining our previous in-depth report judgment on the company’s fundamentals, the industrial core product “Pien Tze Huang series” has obvious advantages.There is ample supply of raw materials, and there is room for competitive improvement in penetration across the country.

We raise the company’s profit forecast and increase the operating income growth rate to 20 in 19-21.

5%, 25.

1%, 19.

7% (previous forecast 21).

7%, 20.

4%, 19.

5%), increasing the net profit growth rate to 25.0%, 37.

3%, 19.

5% (previous forecast was 24.

4%, 23.

8%, 26.

3%), corresponding to PE is 53, 39, 32 times.

At the same time meeting the company’s price increase expectations to drive performance improvement, we raised the company’s PE estimate in 2020 is 45 times (the original value of 43 times), corresponding to the target price of 146 yuan (origin target price of 125 yuan), maintaining the “recommended” rating.

Risk reminders: 1) The supply of raw materials is reduced; 2) The merger and adjustment bring changes in the company’s strategy.

Rongtai Health (603579) 2018 Annual Report and 2019 First Quarterly Report Comment: Short-term pressure on profitability is expected to improve quarterly

Rongtai Health (603579) 2018 Annual Report and 2019 First Quarterly Report Comment: Short-term pressure on profitability is expected to improve quarterly
Matters: The company published the 2018 annual report and the 2019 first quarter report on April 23, 2019.Realized operating income in 201822.9.6 billion, previously +19.70%; net profit attributable to mother 2.49 trillion, ten years +15.28%; basic return 1.78 yuan.It is planned to distribute a cash dividend of 3 yuan (including tax) to all shareholders for every 10 shares.In Q1 2019, it achieved revenue of 5.110,000 yuan, at least -15.22%; net profit attributable to mother 0.580,000 yuan, at least -0.83%. Comment: The forecast of the growth rate of single quarter revenue performance, the operating performance is slightly lower than 天津夜网 expected.The company’s 2018Q3 / 2018Q4 / 2019Q1 revenue increased by +14 respectively.55% /-16.04% /-15.22%, net profit attributable to mother twice.94% / + 6.95% /-0.83%.The Q1 operating results in the 2018 single quarter and 2019 single quarter were slightly higher than expected. We believe that it should be that the destocking of large Korean customers in the second half of 2018 affected the company’s export revenue (the export revenue for the full year of 2018 was 9).4.9 billion, at least -2.05%; Mainland China revenue 13.3.4 billion, previously +42.05%); Second, experiential massage services are affected by intensified competition, increased venue rents, etc., and profitability has shifted. Experience massage services revenue in 20183.66 trillion, +56 a year.71%, it is calculated that the company’s 2018 single Q4 and 2019 single Q1 shared massage service revenues have declined by about 20% in the background of the same period last year.We believe that with the completion of destocking by major customers, the company actively controls the progress of the launch of shared massage chairs and the continuous development of the domestic market brought by user education, and the company’s revenue performance will promote quarterly improvement in the future. The intensified competition for shared massage and the adjustment of product structure have led to a decline in profitability.The company’s gross profit margin in 2018 was 34.07% (year -4.15pct) net interest rate 10.89% (decade -0.92pct), we believe that the decline in gross profit margin is mainly due to the increase in the price of raw materials in the previous period. The proportion of Momoda home massage chairs that reset the gross profit margin has increased and competition in the shared massage market has increased. Among them, shared massage services are subject to venue rent and shared massage.Chair depreciation stalls, intensified competition, and other factors affect the extent of changes in gross profit margins.As for the period expense ratio, the company’s sales expense ratio for 2018 was half a year-1.38pct to 12.35%, management and R & D expense rate -0 per second.74pct to 8.18%, the financial expense rate is ten years -1.51pct to 0.11%.In the first quarter of 2019, the company’s gross profit margin continued to fall under pressure, but its net profit margin improved due to the increase in exchange income and the improvement of management efficiency. The gross profit margin was 29.05% (six years-6.13pct) and a net interest rate of 10.61% (decade +0.30pct).The depreciation and amortization of the first implanted shared massage chair is expected to end in 2019, and profitability is expected to rise and fall. Operating cash flow improved in the first quarter, and expectations are positive.Net operating cash flow of the company for the first quarter1.400 million US dollars, previously + 159%, indicating that the company’s return is in good condition; 82.04 million advances received, previously +44.59%, mainly due to dealers’ active bookings, and the company ‘s new production capacity in Nanxun and Qingpu is gradually released, which is expected to improve. Optimistic about the company’s development and maintain the “strong push” level.We believe that through the company’s ability to control fluctuations in raw material prices, market expansion capabilities and expenses, and profitability promotion, we continue to be optimistic about the company’s development.Due to the intensified competition of short-term shared massage services and the significant impact of destocking by large customers in overseas operations, we have lowered the company’s profit forecast. It is expected that the company’s net profit attributable to mothers will be 3 in 2019-2021.08/3.97/4.920,000 yuan (originally predicted net profit attributable to mothers from 2019 to 20203.20/4.05 ppm), corresponding to the current market capitalization PE of 15/11/9 times. Considering the gradual recovery of the company ‘s overseas business and the release of production capacity, the company is given a 20 times PE in 2019, which is a target price of 45 yuan, and maintains a “strong push” rating. Risk reminder: the macroeconomic downturn leads to sluggish demand, the market development fails to meet expectations, and major customers’ operating risks.

Dongfang Cable (603606): Submarine cable orders continue to land, marine projects contribute incremental

Dongfang Cable (603606): Submarine cable orders continue to land, marine projects contribute incremental

The event company released a semi-annual report for 2019, and accumulated revenue in the first half of the year14.

900 million, a ten-year growth of 7.

5%; net profit attributable to mother 1.

800 million, an annual increase of 220.

1%, net profit attributable to mothers in the second quarter1.

300 million, previously +263.

1%, +164.


The increase in net profit attributable to the company far exceeded the increase in revenue, mainly due to the report’s significant increase in the proportion of submarine cables with high gross profit margins; continued until the 2019 interim reporting period.

  The company maintains a low debt level (interest bearing rejection rate / total assets).

8%), with sufficient funds in hand (monetary funds / total assets 21).

4%), to provide sufficient guarantee for subsequent capacity expansion and order execution.

  Substantial orders for submarine cable projects continued to be won, expanding offshore engineering transformation and perfecting the industrial chain layout In the first half of 2019, the company’s major submarine cable projects shifted to about 13 trillion bids, which was basically the same as the new orders in the first half of 2018, indicating that offshore wind power construction continuedAdvancement and related orders continued to land; until the end of June 2019, the company’s submarine cable order holdings reached 2.6 billion US dollars, which is the basis for the continued growth of subsequent submarine cable business.

In order to develop the offshore wind power industry link, the company and the Three Gorges New Energy, Fushun Investment and other companies jointly invested in the establishment of Dongfang Offshore Engineering Co., Ltd. to cover submarine engineering facilities decoration and offshore engineering design and other businesses.

We believe that through the establishment of an offshore engineering joint venture, the company is expected to further expand the offshore wind power industry chain layout.

   Offshore wind power construction maintains a high degree of prosperity, and submarine cable companies are expected to continue to benefit from the addition of offshore wind power to the grid in 20181.

6GW (previously +42.

2%). In the first half of 2019, offshore wind power installations will be about 400MW (more than 150% a year), and internal offshore wind power construction will maintain a high degree of prosperity.

Offshore wind power construction extends from offshore to deeper sea areas with better wind resources. In 杭州夜生活网 early 2019, the offshore distance of Jiangsu Dafeng Project has reached 70KM.

The continuous advancement of offshore wind power construction and its extension to the distant and deep sea regions will further drive the growth in demand for the submarine cable market, and frontline submarine cable companies will help to fully benefit.

  Estimates and grades: Considering that the rapid installation of offshore wind power construction in 2019-2021 will promote the rapid growth of offshore wind power capacity, we increase the company’s EPS from 2019 to 2020 to 0.

52 yuan, 0.

70 yuan (previous value was 0.

39 yuan / 0.

65 yuan), plus EPS0 in 2021.

99 yuan, maintain “Buy” rating.

  Risk warning: Offshore wind power construction is not up to expectations, and offshore wind power development scale is less than expected.