Sinosteel International (000928) annual report comment: the first increase in revenue realized
Investment Highlights: Event: The company’s 2018 revenue was 83.
67 trillion, the same increase of 3.
99%, net profit attributable to mother is 4.
41 trillion, the same increase 2.
01%, net profit after deduction is 3.
8.8 billion, an increase of 21.
07%; plan to pay 1 for every 10 shares.
20 yuan (including tax).
Revenue for the first time increased, and net profit attributable to mothers increased by 46 in Q4.
In 2018, the company’s operating income 苏州桑拿网 increased by 3 every year.
99%, which has achieved growth for the first time since restructuring and listing in 2014.
From a single quarter point of view, Q1, Q2, Q3, and Q4 revenues increased by -11.
57% and 22.
95%; Q1, Q2, Q3, and Q4 net profit attributable to the mother increased by -9 respectively.
62% and 46.
34%, Q4 growth rate rebounded significantly.
In terms of regions, the revenue from domestic main operations was 51.
52 ppm, an increase of 81 in ten years.
85%, accounting for 62%, and foreign main business revenue was 32.
1.5 billion, a year-on-year decrease of 38.
We believe this is mainly due to the strong demand for capacity upgrading and relocation of the domestic metallurgical industry.
Gross profit margin decreased, the expense ratio improved during the period, and net operating cash flow increased significantly.
The company’s gross profit margin decreased by 1 in 2018.
77 to 11.
64%, we think it is mainly due to the increase in gross profit margin of overseas projects, and individual projects may be the direct cause.
The sales expense ratio and management expense ratio (including research and development expenses) decreased by 0.
25 pct to 0.
22% and 6.
97%, financial expense ratio increased by 3.
64 to zero.
21%, mainly due to the recognition of interest income from debt restructuring of the heavy steel project and Huoqiu project owners in 2017, which reduced the amount of financial expenses and increased the expense ratio during the period.34 pct to 6.
Although the company’s gross profit rate has decreased and its expense ratio has increased, the impact of bad debts has improved significantly after the bad debt burden was lifted, and the bad debts were recouped in 20182.
However, Hunan Sinosteel Equipment Engineering Co., Ltd. withdrew a goodwill impairment of 30.4 million yuan, and the company changed 67.21 million yuan, which had a certain impact on the company’s net profit margin.
The company’s net interest rate fell by 0 in 2018.
34 to 5.
In terms of cash flow, net operating cash flow was 12.
310,000 yuan, an increase of 4.
28 ppm, a significant increase of 50 per year.
54%, mainly due to the increase in newly started projects in 2018, and the increase in advances from accounts was through.
In the new year, the number of orders increased by 166%, with sufficient cash in hand to lead the implementation of protection projects.
In 2018, the company signed a new contract 261.
750,000 yuan, an increase of 166 in ten years.
47%, of which 192 are domestic contracts.
08 million yuan, an increase of 318 in ten years.
20%, 69 new foreign contracts were signed.
660,000 yuan, an increase of 33 in ten years.
As of the end of 2018, the projected revenue of unfinished projects has been 201.
0.6 million yuan, 190 projects have not been started for a long time.
2.4 billion, the company has 30 cash in hand.
5.9 billion US dollars, an excessive surplus is expected to ensure the smooth landing of the project.
And at the end of 2018, the company’s advance receipts increased significantly, and subsequent revenue recognition is expected to accelerate.
Profit forecast and rating.
We expect the company’s EPS in 19-20 to be 0.
47 yuan and 0.
56 yuan, the company’s new short-term orders are growing rapidly, and there are too many orders in hand. The historical burden of heavy steel and Huo Qiu has been resolved. The growth of future performance will 淡水桑拿网 accelerate, giving 19 times 14 times price-earnings ratio. Combined with DCF assessment, the reasonable value range is 6.
51 yuan, maintaining the “primary market” rating.
Policy risk, repayment risk, overseas project risk.