Bo Shi shares (002698): 19Q1 performance preview comment 19Q1 performance exceeded expectations high growth to verify the continued high prosperity downstream

Bo Shi shares (002698): 19Q1 performance preview comment 19Q1 performance exceeded expectations high growth to verify the continued high prosperity downstream

Guide to this report: The company released a performance forecast, and achieved a net profit of 0 in 19Q1.

68-0.

7.9 billion, an increase of 230% -280% previously, exceeding expectations.

  Investment Highlights: Legislation: The company issued a performance forecast, and achieved a net profit of 0 in 19Q1.

68-0.

7.9 billion, an annual increase of 230% -280%, exceeding expectations.

The high growth rate in the first quarter reports the continued high prosperity in the downstream; gradually, in order to reduce the expected impact of the quarterly transition, the company will report in detail the 19-year budget in the annual report to further improve the certainty of performance.

In 19Q1, the profit margin increased significantly. It is expected 杭州桑拿体验网 that the waste acid equipment will gradually recognize revenue from Q2, and maintain 2018 to 20 EPS.

27/0.

51/0.

69 yuan, considering that product expansion opens up long-term growth space and maintains a target price of 17.

9 yuan, corresponding to 35 times PE in 2019, increased holdings.

  The results of the first quarter report exceeded expectations, and high growth verified the continued high prosperity in the downstream.

The main reason for the judgment is that the revenue recognition of Q1 has accelerated, and the profit margin has increased significantly.

The first quarter report has made a good start for 19 years, but the announcement reminds that the revenue recognition of each quarter is uneven. The company will refer to the 19-year performance forecast 杭州桑拿 and financial budget in the annual report based on the product delivery cycle.

On the whole, we judge that the current round of downstream capital expenditure is still in the upward cycle. The high business climate is expected to continue into 2020. It is expected that new growth orders will increase by more than 20% in 19 years, and orders will continue to accumulate and the company’s financial budget will increase.Certainty in annual performance.
  Q1’s profit margin has increased significantly. It is expected that from Q2, waste acid equipment will gradually recognize revenue.

The main business of powder and granule equipment, service business, robots and rubber equipment increased significantly in 19Q1. It is expected that the parent company’s revenue will be recognized at more than 300 million US dollars, a cumulative growth of over 80%. As the waste acid equipment revenue has not been confirmed, it is expected to affect the consolidated statement profit5-6 million, the actual net profit of the parent company is 0.

74-0.

85 ppm, with a net profit margin of about 25%, a significant increase.

It is expected that the revenue from waste acid equipment will be gradually recognized starting from Q2. The waste acid business includes high gross profit process packages, which is expected to further boost the overall profit margin (parent company’s statement net interest rate).

  Catalyst: large orders extended.

  Risk warning: New product market development is not up to expectations, and the profitability of petrochemical companies is deteriorating.