Main points of investment
Event: Kim Jong-da released his 2018 performance KuaiBao. During the reporting period, the total operating income was 17.566 billion yuan, down 11.43% from the same period last year. The total profit was 823 million yuan, down 11.74% from the same period last year. The net profit attributed to shareholders of listed companies was 578 million yuan, down 19.21% from the same period last year. Basic earnings per share is 0.18 yuan.
The net profit of the company's 2018Q4 belonging to the shareholders of the listed company was-376 million yuan, and the loss increased by 95.83% compared with the same period last year.
Maintain a "buy" investment rating. The rise in simple fertilizer prices led to increased costs, depressed food prices dragged down compound fertilizer sales, higher fees such as "pro-soil No. 1" marketing, and German Kim Jong Dah due to a change in the caliber of the merger had a greater impact on the net profit of his mother. Kim Jong Dah 2018Q4 showed a loss, and the company's annual performance declined in 2018 compared with the same period last year.
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 0.18,0.21 and 0.25 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.