Short-term performance is under pressure, due to the postponement of income recognition and impairment of assets: the company previously released its 2018 performance, KuaiBao, which achieved an income of 241 million yuan in 2018, down 11.6% from the same period last year, and a net profit loss of 164 million yuan. Mainly affected by the following two factors: (1) under the financial deleveraging policy, the progress of PPP public infrastructure projects lags behind, which delays the recognition of revenue from lightweight construction orders, affecting revenue at the same time, the decline in scale effect has an impact on gross profit margin and period costs; (2) after a comprehensive inventory and asset impairment test, the company intends to set aside 77.3755 million yuan for asset impairment provision in 2018.
The first quarter results forecast announced by the company shows that 2019Q1 revenue is basically flat, and the impact of PPP project delay is gradually reduced; the company previously announced that the automobile lightweight business in the first half of 2018 received a cumulative order of 1.405 billion to 1.758 billion yuan, the implementation of this part of the order and revenue recognition will provide support for follow-up income growth.
Join hands with the Seaport Group to accelerate the landing of lightweight vehicles: with the arrival of the new energy vehicle consumption market and stricter vehicle emission policies, lightweight vehicles are imperative. The company is rich in customer resources of vehicle and battery factory. At present, it has supported Ningde Times, Yutong bus, Dongfeng Liuqi and other customers, and has received many orders such as Geely commercial vehicle, BMW China, Guoxuan Hi-Tech and so on. It was announced in October 2018 that Haiyuan New Materials, a wholly-owned subsidiary, signed a "Strategic Cooperation Framework Agreement" with Zhejiang Seaport Industry and Finance. At present, Shanghai Volkswagen, Geely and other vehicle factories have landed in the new area; it is expected that the company will cooperate with vehicle enterprises in the new area. speed up development.
The advantages of the whole industrial chain of composite materials are obvious, and the downstream application space is broad: the company is a leading manufacturer of automatic hydraulic press, and the technology in the field of automatic hydraulic molding is rich. Relying on equipment advantages, while integrating domestic and foreign resources, we have constructed a complete industrial chain from composite equipment, technology, materials, mold development, product design to product production, with a comprehensive leading advantage. In addition to automobile lightweight, construction lightweight has established long-term cooperation with China Traffic, China Rallway, Vanke, Greenland and so on, and is still actively developing other large construction enterprises. Metro and other infrastructure projects are expected to accelerate construction in the near future, and the sales of the company's products in the field of public construction are expected to increase rapidly.
Investment advice: from 2018 to 2020, the company's revenue growth is expected to be-11.6%, 150.2% and 23.5% respectively, and net profit growth is-2440.3%, 119.8% and 50.8% respectively, corresponding to EPS of-0.63 yuan, 0.13 yuan and 0.19 yuan respectively. The company has the advantages of the whole industry chain of composite materials. With the popularization and rapid development of new energy vehicles, the downstream application space is broad. Given the "increase-A" rating, the 6-month target price is 11.70 yuan.
Risk hint: the revenue of construction plate is not as expected, and the price of raw materials rises.