Xinyangfeng (000902): Steady growth in interim results and outstanding performance of new fertilizer
Investment Highlights The company announced its 19-year interim report, with 19H1 income of 57.
7.5 billion with an increase of 4.
25%, net profit attributable to mother 6.
3 billion with a 17 increase.
Excluding the impact of trade and bad debt accrual, revenue growth rate was 11.
4%, profit growth rate of 23.
1%, with steady growth in performance.
Income side: Excluding the impact of trade, income increased by 11.
As the revenue recognition method of some raw material trading businesses was replaced by the consolidation method instead of the net method, 19H1 trade income increased by 57.
96%, excluding trade-affected income growth
In terms of product breakdown: 1) Compound fertilizer revenue from core business43.
6.5 billion increased by 15.
Among them, new fertilizer sales increased by 23.
01%, income increased by 28.
32%, strong growth; conventional fertilizer sales also increased by 5.
13%, income increased by 11.
2) In terms of phosphate fertilizer, the increase in production and sales of compound fertilizers resulted from the increase in consumption, resulting in a decrease in foreign sales / income3.
05% / 3.
Profit side: Excluding the bad debt accrual of other receivables, the net profit growth rate attributed to mothers23.
13%, deducting non-net profit growth rate of 22.
Xinyangfeng acquired a 51% stake in Greenport in 2016, and the acquisition plan was adjusted after the acquisition ratio was reduced from 51% to 10%.
In the acquisition plan, Green Harbor was required to purchase part of Xinyangfeng’s stock with a portion of the purchase money. Due to the reduction in the acquisition ratio, Green Harbor had bought 12.76 million shares (average price of 15 each time).
08 yuan), forming other receivables1.
On March 3, 2017, the Yangfeng Group has advanced the purchase money that should be returned1.
9.2 billion, so there is no potential.
Taking into account that the provision for bad debts in the accounting period of the budget was increased from 10% to 30%, resulting in an impairment provision of approximately 38.45 million, affecting an after-tax profit of approximately 32.68 million, and the net profit attributable to the mother increased by 23 in 19H1.
1%, deducting non-net profit increased by 22.
In addition, if it reaches 15.
08 yuan and the company rushed back bad debt reserves of 57.66 million, which will increase 49.02 million net profit.
The growth of new fertilizers is dazzling, and the product structure continues to be optimized and upgraded.
19H1 new fertilizer sales increased by 23.
01%, income increased by 28.
32%, strong growth, while revenue / gross profit ratio 18.
82% / 22.
61% increase by 3.
08pct, the product structure continued to be optimized and upgraded, driving the 19H1 gross profit margin of 21.
34% increase by 1.
7pct, the profitability is constantly increasing.
The strong growth of new fertilizers mainly benefits from the research and development of high-end fertilizers and high-value-added professional technical services.
The quality of the report is excellent, and the effect of scale is further released.
In terms of expenses, the company’s 19H1 sales expense ratio decreased by 0 year-on-year.
08pct, mainly benefit from: 1) the brand advantage and the scale effect brought by the continuous expansion of the main business; 2) self-built docks and railway dedicated lines (used at the 18 terminal of the Jilin Railway Special Transport Line), effectively reducing transportation costsExpenses account for about 40% of the sales expenses of compound fertilizer enterprises.
In 19H1, the management expense rate has dropped by 0 every year.
07pct, mainly due to the reduction of depreciation vendors and the improvement of internal operation efficiency.
At the same time, the company’s invoice receivables, advance payments, accounts payable, advance receipts, and operating cash flow all performed well.
Monoammonium phosphate supply-side reforms strengthen the company’s integration advantages.
With 南宁桑拿 the continuous advancement of triphosphorus rectification, the contraction of the environmental protection supply side gradually extended, until the end of May 19, the production of monoammonium phosphate was 676.
8 drops 6 initially.
61%, we believe that the price of subsequent monoammonium phosphate will gradually rise due to the impact of supply-side reforms.
The company has a capacity of 180 tons of monoammonium phosphate, and is expected to undertake part of the capacity during the industry integration stage, and the integration advantage will be further strengthened.
We are optimistic about the long-term advantage of triphosphorus rectification in the compound fertilizer industry, which has resource advantages and environmental protection standards. The company’s core product strength will continue to 南京桑拿论坛 highlight.
Earnings forecast and investment rating: As a white horse of agrochemical consumption, the company, based on the advantages of industrial chain integration, has higher product costs and good profitability of distributors. Therefore, the company’s historical performance has maintained steady growth.
In 2019, we will continue the growth logic of increasing market share and optimizing and upgrading the product structure. We are optimistic about the company’s sustainable growth. We expect the company to achieve 110 revenue in 19-21.
72 billion, an increase of 9.
7% / 11.
6% / 11.
3%; net profit attributable to mother 9.
5.3 billion, an increase of 21.
9% / 20.
9% / 20.
The current priority corresponding to PE is 15.
0X / 12.
4X / 10.
3x, maintain “Buy” rating!
Risk warning: raw material prices fluctuate; environmental protection fails to meet expectations; tri-phosphorus rectification efforts exceed expectations, increasing environmental protection expenditures and operating costs; weak rebound in agricultural product prices