8% focus on new business progress
Dongfeng shares (601515): 1Q19 net profit increased by 5 in half a year.
8% focus on new business progress
The first quarter of 2019 results are in line with expectations Dongfeng shares announced the first quarter of 2019 results: operating income9.
07 trillion, an increase of 11 in ten years.
47%; net profit attributable to mother 2.
200,000 yuan (corresponding profit) 0.
17 yuan / share), an increase 西安耍耍网of 5 in ten years.
79%, net of non-attributed net profit2.
1.7 billion, an increase of 7 in ten years.
10%, in line with expectations.
Development trend 1.
Revenue grew steadily.
In the first quarter of 19, the company’s revenue increased by 11 in ten years.
47%, by business: 1) Main business of cigarette label: The company’s cigarette label business service brand covers 10 of the TOP15 domestic sales in 2018, benefiting from the national cigarette production growth of 7 in the first quarter.
8%, the number of medium and high numbers is expected to increase; 2) Consumer product packaging and printing: The company’s social packaging and printing production base in the southwestern region of the company has officially operated in 2018, benefiting from the improvement of the downstream industry boom and rapid business growth. In 2019, the company will further expand through outbound M & AExpand downstream new industries, acquire Guizhou Chiba Fatli Pharmaceutical Packaging, consumer goods packaging business grows rapidly; 3) Base film: PET base film double brand market recognition continues to increase, more than 40 new products developed in functional films in 18 years are popular, 19Progress continues the growth trend; 4) Large consumer industries: the construction of new production lines for Australian dairy factories has continued to advance, the product structure has been further enriched, and internal marketing channels have been continuously improved. The number of terminal outlets in 18 years has exceeded 3,000, and the company re-subscribed in January 192% equity in dairy factory, optimistic about long-term development of dairy business; 5) In terms of e-cigarette business, the affiliate Luxin Electronics has sold its own brand MOX to overseas markets such as Japan in 2018, and will continue to expand its industrial hemp business in 2019. The future needs to be tracked.
Gross profit margin increased, but the expense ratio dragged down the net profit margin during the period.
Benefiting from the decline in raw material prices, the company’s gross profit margin increased in the first quarter.
4ppt to 45.
1%, but due to the increase in the expense ratio during the period, the net interest rate decreased.
3ppt to 24.
3%, in which the ratio of sales / management / R & D / financial expenses +0.
1ppt / + 0.
4ppt / + 0.
6ppt / + 0.
0ppt to 3.
0% / 6.
3% / 4.
0% / 0.
Follow the progress of the industrial hemp business of associates.
Lvxin Electronics co-invested with Yunnan Hansu to establish Yunnan Hanxin in February 2019, exploring the operation of basic materials related to industrial hemp flower and leaf extraction, and synergizing with the heating and non-burning smoking business is expected, but policy supervisionGuidance and specific business progress.
Earnings forecast remains unchanged from 2019 / 20E earnings forecast of 0.
63 yuan / share unchanged.
Estimates and recommendations are currently expected to correspond to 18/16 times P / E in 2019/20, maintaining the recommended level.
Maintain target price of 12.9 yuan, corresponding to 23/21 times P / E in 2019/20, corresponding to 30% growth space.
Risks Price fluctuations of raw materials; increased industry competition; policy risks.