Aveneu Park, Starling, Australia

Honglu Steel Structure (002541): Plenty of orders to support high growth and early start-up of new construction base to lower overall gross profit margin

Honglu Steel Structure (002541): Plenty of orders to support high growth and early start-up of new construction base to lower overall gross profit margin
The company recently announced its semi-annual report for 2019 and achieved operating income of 47 in the first half of the year.79 trillion, an increase of 52 in ten years.9%; net profit attributable to parent company1.700 million, an annual increase of 4.81%.The opinions are as follows: Plenty of growth in orders in hand, new production base capacity is expected to gradually release the company’s total production plant area of about 2.3 million square meters, total steel structure capacity of more than 210, the output of 81 in the reporting period.At the beginning of 1996, it increased by 30 compared with the same period last year.30%.The company signed a new contract 69 in the first half of the year.6 trillion, a year-on-year increase of 52%, of which material orders are 59.850,000 yuan, an increase of 97 in ten years.79%; engineering order is 9.75 ppm, a reduction of 37 per year.twenty two%.The fluctuation of engineering order volume since 2013 has decreased, while the manufacturing order volume that has advantages in terms of receivables and gross profit margin has steadily increased. It is expected that the development of prefabricated construction EPC with policy support will help the rebound of engineering order volume. Revenue growth rate remained high, and gross margin is expected to rebound in the second half of the year to achieve revenue of 47 in the first half.79 trillion, an increase of 52 in ten years.9%, ample orders in hand supported rapid growth in revenue.Specifically, the revenue of emerging prefabricated construction business6.7.4 billion, an increase of 88 in ten years.33%, mainly due to the company’s vigorous development of prefabricated business under the policy support; the remaining construction light steel structure, building steel structure and other steel structure business revenue growth average of about 50%.Report the gross profit margin of steel structure business of Tier 1 companies9.75%, a decline of 5 per year.Three units, mainly due to the rise in steel prices in recent years, the company ‘s increase in gross profit margin in the first half of the year, the continuous high-speed growth of production capacity and the intensified competition within the industry, the current steel prices have begun to decline, the gross profit margin rose in the second half. The company’s scale effect appeared, and the period expense ratio steadily decreased. The period expense of the company6.44%, a decline of 3 per year.35 units.Among them, the sales expense ratio, management expense ratio, R & D expense ratio and financial expense ratio decreased by 0 respectively.78, 3.43,1.39 and 0.92 units.Management costs increase by 38 each year.16%, mainly due to the increase in sales during the current period, the corresponding expenses increased, and the remaining expenses due to the company’s scale effect showed a steady decline in average.The government subsidy income reported in the statutory carry-over decreased, and the receipt of government subsidies formed 0 external operating income.4.6 billion, accounting for 22.55%, a decrease of 43 per year.36%.Net profit 1.700 million, an annual increase 成都桑拿网 of 4.8% in the second half of the year due to the decline in steel prices will pick up. The new production base expanded steadily, and investment cash inflows continued to increase the company’s cash-to-cash ratio of zero.9372, a decrease of 20 per year.79 averages, with a payout ratio of 0.8494, an annual increase of 6.36 units.The decrease in the cash-to-cash ratio was mainly due to the increase in the accounts receivable and bills receipts of the company’s sales receipts, among which bills receivable.2.6 billion, an annual increase of 320.15%.The company’s sales volume increased, its costs increased, and its net operating cash flow dropped to 4.2.3 billion, down 50 previously.27%.During the period, new production base investment continued to increase, and the decrease in net investment cash flow decreased from the same 无锡夜网 period of the previous year.5.8 billion to 7.6 billion, an annual increase of 36.18%. Investment suggestion: The company’s newly signed contract volume will increase steadily. In the second half of the year, the gross profit margin will be affected by the decline in steel prices and the new bases will be put into production.The prefabricated construction and engineering general contracting model is strongly supported by policies, which is beneficial to the company’s related business development.Temporarily maintain the company’s EPS1 for 2019-2021.02, 1.30, 1.The forecast of 63 yuan / share corresponds to 7, 6, and 5 times the PE. As the first half performance is slightly lower than expected, the target price is lowered to 9.2 yuan (originally 10.2 yuan). Risk reminder: Project advances less than expected; steel prices increase sharply.