In 2017, the company's performance increased by 30.5% compared with the same period last year.
In 2017, the company realized operating income of 3.59 billion yuan, an increase of 43.6%. The net profit belonging to the owner of the parent company was 330 million yuan, up 30.5% and 0.38 yuan per share. In the fourth quarter alone, the operating income was 1.06 billion yuan, an increase of 90.6%, and the net profit belonging to shareholders of listed companies was 1.86 million yuan, down 97.7%. Profit distribution plan: 0.8 yuan cash dividend (including tax) is distributed to all shareholders for every 10 shares.
Investment in fixed assets in Tibet grew by 23.8% in 2017, 0.6% higher than that in 16 years; the average price of cement was 740 yuan per ton, an increase of 8.9% over 16 years; and cement output was 6.421 million tons, an increase of 5.9% over 16 years. The stable and rapid growth of infrastructure investment in Tibet has led to a substantial increase in local cement demand, while regional supply is insufficient and prices continue to rise. As a regional leader, revenue and profits are growing rapidly.
Both volume and price rise, gross profit margin goes up and rates fall.
During the reporting period, the company's revenue increased by 43.6%, the consolidated gross profit margin increased by 29.2%, up 1.6 percentage points over the same period last year; the sales rate, management rate and financial rate were 0.7%, 9.3% and 1.0% respectively, down 0.1%, 2.1% and 0.6% respectively over the same period last year; the period rate was 11.0%, with a decrease of 2.8 percentage points
In the fourth quarter alone, the company's revenue increased by 22.2%; the comprehensive gross profit margin was 24.5%, down 10.3% from the same period last year; and the sales rate, management rate and financial rate were 0.4%, 12.5% and 0.4% respectively, down 0.4%, 6.8% and 2.8% respectively from the same period last year. The period rate was 13.4%, down 10.3 percentage points.
The cement sales business is booming, and the performance of the holding cement subsidiary is growing rapidly.
During the reporting period, the revenues of sub-products, cement, commercial concrete and construction projects accounted for 73.6%, 10.2% and 14.6% respectively, and the main profits accounted for 93.8%, 4.3% and-0.2% respectively. The gross profit margins of the three businesses were 37.1%, 12.3% and-0.4% respectively, representing year-on-year changes of 3.0%,-2.0% and-11.0% over the same period last year. Among them, the revenue of cement and commercial concrete business increased by 50.7% and 233.8% respectively.
Among the holding subsidiaries, the operating income of Tibet Gaozhan Building Materials and Qamdo Gaozhan Building Materials were 26.2 yuan and 460 million yuan respectively, up 67.4% and 25.2% respectively over the same period last year; the net profit was 5.3 yuan and 70 million yuan respectively, up 63.1% and 175.8% over the same period last year; of which the minority shareholders' equity was 2.2 yuan and 30 million yuan respectively.
Profit forecast and investment suggestion
The high growth rate of infrastructure investment in Tibet has driven the rapid growth of cement demand, while the shortage of cement has kept prices high.
The company's new production capacity has been fully released, the volume and price of products have risen, and the performance has grown rapidly. The company has a market share of nearly 67% in Tibet, and will continue to benefit from the continued growth in cement demand and product prices brought about by accelerated regional investment and rapid economic development in the future. We maintain the profit forecast for the company's 18-19 EPS 0.80,0.99 yuan, add 20 years forecast EPS1.10 yuan, target price 12.00 yuan unchanged, maintain the "buy" rating.
Risk hints: infrastructure investment and cement demand are not growing as fast as expected; risk of falling cement prices and rising raw material prices