Beijing New Building Materials (000786): The first quarter will be the bottom of the growth rate

Beijing New Building Materials (000786): The first quarter will be the bottom of the growth rate

Core point of view: The company disclosed the quarterly report for 2019, and the company achieved operating 南京夜网 income of 24 in Q1 2019.

270,000 yuan, at least -2.

83%; net profit attributable to shareholders of listed companies3.

28 ppm, -33 per year.

12%; the corresponding return is 0.

19 yuan.

Deduct non-net profit 3.

24 ppm, -31 per year.

76%.

The industry needs to gradually expand environmental protection and relax, and the company’s performance in the first quarter showed a range.

The company achieved operating income of 24 in Q1 2019.

270,000 yuan, at least -2.

83%; attributable net profit 3.

28 ppm, -33 per year.

21%; the company’s performance improved in the first quarter, mainly due to the general downstream demand, the industry’s supply margins deteriorated, the company’s gypsum board sales growth rate fell, the unit price fell.

2019Q1 company gross profit margin 30.

07%, 5 per year.

40pct,上海夜网论坛 mainly due to multiple effects of product prices.

Raw material purchases increased and cash flow from operating activities decreased.

Net cash flow from operating activities of the company in Q1 2019-1.

800,000 yuan, at least -192.

86% (2017Q1 net cash flow from operating activities -1.

9 billion).

Among them, operating cash inflows24.

51 ppm, at least -8.

37%, mainly due to the sales of goods in this period, the cash received for providing labor services decreased compared with the same period of the previous year; operating cash exchanged 26.

32 trillion, ten years +6.

07%, mainly due to the purchase of goods in this period, the cash paid for labor services increased compared with the same period last year.

At the bottom of the cycle, the mid-to-long-term center moves up.

From the perspective of industry data, the production growth rate of the gypsum board industry since 2018 is the worst level in the past 10 years and is at the bottom of the cycle. The company’s 2019Q1 gypsum board sales growth + 1%, excluding the impact of the dream card consolidation, continued -2%However, the company’s profitability has remained at a high level, reflecting the company’s pricing power.

In the medium and long term, we believe that the company’s profit center is expected to continue to move upwards. First, the growth rate of real estate completed area promotes the rebound; second, the company is actively strengthening brand building, the product structure is upgrading, and the high-end is changing, and the profit center is expected to improve.
Investment suggestion: Maintain “Buy” rating.

In the medium and long term, the use of gypsum board penetration (residential partition wall applications, decorative gypsum board applications) and thick plates to replace thin plates will increase the domestic gypsum board industry’s growing demand; the use of greater environmental protection will accelerate the industry’s irregularThe company is out, and the company’s domestic production capacity has further expanded, and the market expansion has continued to increase. The expansion and expansion will bring the company’s pricing power to increase; we expect the company’s EPS to be 1 in 2019-2021.

73, 2.

21, 2.

67 yuan / share, according to the latest expected PE estimates are 11 respectively.

0, 8.

6, 7.Doubled, considering the company’s performance growth in the next two years, we believe that the company can give the company a PE15X estimate for 2019, which corresponds to a reasonable value of 25.

95 yuan / share, maintain “Buy” rating.

Risk Warning: The price of raw materials has risen sharply, the actual demand has increased, and the impact of US lawsuits