Main points of investment
Event: Kim Jong-da issued a 2018 performance revision announcement, in which the net profit attributed to shareholders of listed companies ranged from 572 million yuan to 787 million yuan during the reporting period, up (or down)-20% to 10% from the same period last year.
At the same time, the company issued a notice on the share buyback plan of the company, which intends to use its own funds to buy back the company's shares in the form of centralized bidding transactions, with a total fund range of 800 million to 1.5 billion yuan, with a recovery price of no more than 9.88 yuan per share. The repurchased shares will be cancelled and the registered capital of the company will be reduced in accordance with the law, and the repurchase period shall be within 12 months from the date of consideration and approval of the repurchase plan by the shareholders' meeting.
Maintain a "buy" investment rating. The rising price of raw materials, the decline in the sales of compound fertilizer, the high cost of marketing "pro-soil No. 1" and other factors such as the change in the caliber of the merger in Germany have a great impact on the net profit of the return mother. Kim Jong-da revised down the performance forecast for 2018.
Kim Jong-da is one of the leading compound fertilizer enterprises in China, gradually forming a product pattern based on ordinary compound fertilizer, slow and controlled release fertilizer, soil conditioner and so on. The new product "pro-soil No.1" is expected to become a new growth point of the company's performance. The company actively layout the global market, the acquisition of German Kangpu Horticulture, Holland Hekang Company, etc., continue to enhance their competitiveness and international popularity. More importantly, under the background of zero growth in the chemical fertilizer industry, the company cooperates with the International Finance Corporation to focus on the distribution of agricultural services, build the Jinfeng commune model, and realize the transformation of the company from a manufacturing enterprise to a "manufacturing + service" enterprise. cut into the vast agricultural service market, or open up a broad space for development. We adjusted the company's EPS forecasts for 2018-2020 to 0.21,0.23 and 0.26 yuan respectively to maintain the "buy" investment rating.
Risk tips: demand continues to be depressed; the project is not advancing as fast as expected; and raw material prices fluctuate sharply.
