Nai shares (002225) January 2019 comment: the pledge rate has dropped significantly, ROE and operating rate have improved significantly

桑拿

Nai shares (002225) January 2019 comment: the pledge rate has dropped significantly, ROE and operating rate have improved significantly

Investment Highlights: Event: On April 22, the company released the 2019 first quarter report, and the company achieved total operating income of 11 in the first quarter of 2019.

10,000 yuan, an annual increase of 23.

69%, achieving net profit attributable to shareholders of listed companies of 6483.

37 yuan, an annual increase of 18.

29%.

The initial gain is zero.

07 yuan, an annual increase of 16.

67%.

Benefit from the improvement in demand caused by the increase in the volume of cyclical industries such as steel, and even the decline in the prosperity of cyclical industries such as steel has little impact.

The company’s operating revenue growth rate in the first quarter of 2019 maintained 无锡夜网 a steady growth, mainly due to the increase in sales and contract orders.In 2019, medium-cycle industries such as steel are in a state of high prosperity.Among the main paths for increasing volume growth, as the upstream of medium-cycle industries such as iron and steel, benefit from the improvement of demand, as the industry’s leading companies benefit the most.

As the upstream of cyclic industries such as iron and steel, once the prosperity of medium-term industries such as steel has not fallen to a poor level, the use of refractories will not be affected, and even a decline in the prosperity will not be given to the refractory industry.

Because the refractory industry’s use of steel and other periodic industries is not high, and the quality will directly affect the quality of steel industry products.

The transformation of the company into a butterfly net asset yield and operating efficiency have improved significantly.

The company’s return on assets before 2018 is mainly due to the company’s M & A subsidiary’s performance in the previous period is not up to expectations, and has generated too much goodwill, especially in the industry’s down cycle, this burden weighs on the company’sPerformance.

However, through continuous impairment of goodwill, the company gradually digested, and through the improvement of the bottom of the industry’s prosperity, began to transform the burden to the basis of elasticity.

In the first quarter of 2019, the company’s annualized return on net assets reached 11.

07%, an increase of 1 over the same period last year.

88 averages, an increase of 8.
.

75 units.

The company’s operating efficiency has also improved significantly.

The inventory turnover days in the first quarter of 2019 were 137.

28 days, a decrease of 22 over the same period last year.

41 days; accounts receivable turnover days are 123.

10 days, a decrease of 43 compared with the same period last year.

41 days.

The operating efficiency of the company’s assets began to improve significantly, reaching the level of the industry’s historical boom in 2011.

The development of raw materials business will improve the company’s gross profit margin.

The company’s consolidated gross margin for the first quarter of 2019 was 27.

21%, a decline of 0 per year.

96 units, relatively stable.

The price of raw materials in the industry is still at a high level, mainly due to environmental protection leading to government restrictions on the exploitation of raw materials.

The company currently owns high-purity magnesite from Haicheng Linli, Xinjiang and Tibet, which can not only provide the company with its own substitute for export, which will increase the company’s gross profit level.

The company will move the direction of unlimited raw material prices into a situation of higher risk resistance.

At the same time, the development of raw materials business will become an important part of the company’s performance improvement.

The pledge rate of major shareholders has dropped significantly.

In the early period, the large shareholders carried out equity pledge financing for the acquisition and construction of high-purity magnesite, with a high proportion.

On April 10, 2019, Chairman Liu Baikuan’s pledge rate dropped to 69.
07%, controlling shareholder, actual controller and always acting hostage mortgage rate 69.
twenty four%.

The company’s overall pledge ratio is 32.

42%.

Profit forecast and investment rating: It is expected that the company’s EPS from 2019 to 2021 will be 0.

37 yuan, 0.

52 yuan and 0.

68 yuan, corresponding to PE is 17 times, 12 times and 9 times. Considering the company’s comprehensive advantages as a leading refractory company, technology, raw material business development and mergers and acquisitions to help rapid development, the company turned the burden into a performance elasticity basis, net assetsSignificant improvement in yield and operating capacity, as well as a decline in the actual hostage mortgage rate, maintain the company’s “strongly recommended” investment rating.

Risk Warning: The development speed of the raw material business is lower than expected.