Beijing New Building Materials (000786) 2019 Third Quarterly Report Review

Beijing New Building Materials (000786) 2019 Third Quarterly Report Review

The company achieved operating income of 98 in Q3 2019.

1.7 billion, an increase of 3.

2%, attributable net profit -0.

08 thousand yuan, with the same reduction of 100.

53%, deducting non-net profit 18.

42 trillion, with a decrease of 7.

46.

Further increase of market share and recovery of land completion are expected to bring marginal increase to the company’s subsequent performance.

Event: The company announced three quarterly reports and realized 98 operating income.

1.7 billion, an increase of 3.

2%, attributable net profit -0.

0.8 billion yuan, down 100%.

53%, deducting non-net profit 18.

42 trillion, with a decrease of 7.

46%, gross margin 34.

59%, same as minus 1.

5pcts, net operating cash flow 13.

8.6 billion yuan.

Among them, Q3 single-quarter operating income was 37.

7.9 billion, an increase of 7.

21%, attributable net profit 6.

81 trillion, with a decrease of 8.

57%, deducting non-net profit 7.

44 trillion, same minus 0.

56 points, gross profit margin 36.

66%, the same increase of 0.

68 points, the ring increased by 1.

21pcts, net operating cash flow 6.

9.8 billion yuan.

The market share has further increased, and the completion of the future will bring marginal increase to the company.

The company’s Q1-Q3 Dragon brand sales are 0.

6/1.

10,000 square meters, Taishan sales 2.

9/4.

3/4.

40,000 square meters, Dream brand sales remained at 0-0.

Between 20,000 square meters, the company’s overall Q3 sales increased by 5%, and the ring increased by 1%. Under the background of the overall industry ranking, the city’s share has been further improved.

Since August, the real estate completed area has exceeded normalization, and the same growth rate in September confirms the completion logic. According to the grass-roots research on the cutting-edge glass industry, we expect the union to be more sustainable in the future, ending the sluggish completion in the first half of this year.At present, 40% of the downstream demand for gypsum board is home improvement, and the completion of the improvement will bring marginal increase to industry demand.

The gross profit margin increased month-on-month, confirming the company’s pricing power logic.

Company Q3 gross margin was 36.

66%, a month-on-month increase of 1.

Twenty-one items reflect pricing power. The gross profit margins of Dragon / Taishan / Dream are 50% / 34% / 11%, respectively. The gross profit of Dragon / Taishan is reduced by 5pct / 1pct.

The company deducted non-net profit for Q3 in a single quarter7.

430,000 yuan, with a single second quarter 7.

The net profit of 7.4 billion was basically flat, netting non-single flat profit1.

34 yuan / square meter, with Q2 of 1.

41 yuan / square meter deducted non-single flat net profit is basically the same (previously, the single-ping net profit was calculated according to the impact of the add-back lawsuit, this time and in the future we will calculate the non-deductible).

The increase in non-recurring gains and losses is mainly due to the increase in unpaid compensation exchange losses, which is expected to exceed 50 million yuan, which is reflected in financial expenses and non-operating expenses.

Cash flow continued to be outstanding.

The company’s Q3 single-quarter cash ratio was 1.

11. Net operating cash flow of 7 trillion, accounts receivable and notes 4.

9 trillion, only an increase of 0.

2.2 billion, accounts receivable turnover days 6.

For 44 days, the company continued to excel in cash flow, reflecting the company’s superiority in speaking upstream and downstream in the industrial chain.

Inventories fell 0% month-on-month.

4.3 billion.

Risk factors.

Potential fluctuation risk of real estate investment, raw material price fluctuation risk, macroeconomic fluctuation risk.

Profit forecast and estimation.

As an industry leader with a 60% market share, the company has a cost advantage in low-end products and restricts small enterprises from entering new capacity. High-end products have brand and channel advantages. They work with three wealthy companies to earn brand and 北京桑拿洗浴保健 service premiums.Obviously competitive moat.

The future business focus is mainly on three aspects: 1. Increasing production capacity to continue to seize domestic advantages, overseas layout is gradually promoted, the company’s global city share has further increased, sales volume has steadily increased, and the trend of downstream consumption upgrade gradually, the company’s proportion of high-end products promoteContinued improvement, Shanping’s net profit increased.

2. In the future, the keel business is expected to increase the matching rate with the company’s gypsum board and open the growth ceiling.

The waterproof business is expected to bring profits to the company.

3. The reform of state-owned enterprises was promoted, the corporate governance structure was further optimized, and the vitality of competition was 杭州桑拿 further enhanced.

Based on discounted free cash flow, we believe that the company’s market value is expected to exceed US $ 50 billion in the future, waiting for an estimated repair.

We maintain our 2019-2021 net profit forecast8.

2/29.

2/33.

1 trillion, corresponding to EPS prediction 0.

49/1.

73/1.

96 yuan.

Give a target price of 24.

24 yuan (corresponding to 2019 PE 15X).

Maintain “Buy” rating.