Sinoma International (600970) 2018 Annual Report Comments: Benefiting from the Belt and Road Environmental Protection Business Enters a Period of Rapid Development
Event: The company achieved operating income of 215 in 2018.
10,000 yuan, an increase of 9 in ten years.
96%; realize net profit attributable to shareholders of listed companies.
68 ppm, a 39-year increase of 39.
The initial gain is zero.
78 yuan, an annual increase of 39.
The increase in environmental protection business increased the growth rate of operating income.
In 2018, the company’s operating income in engineering construction growth rate was 8%; equipment manufacturing growth was 5.
74%; production operation is 8.
29%; environmental protection is 26.
The main reason is that new contracts for engineering construction have fallen by 10% each year, production and operation management have fallen by 93%, and environmental protection has increased by 32%.
杭州桑拿Equipment manufacturing increased by 5%.
The company’s overseas projects are mainly in Africa (105.
9.1 billion), Southeast Asia (51.
5.9 billion), Middle East (22.
02 billion), the rest of Asia (19.
7.7 billion) and Europe (2.
The gross profit margin and period expense ratio increased and decreased, and profitability increased steadily.
In 2018, the company’s operating costs increased temporarily7.
64%, lower than revenue 9.
With a 96% growth rate, overall cost control is higher, with manufacturing costs accounting for more than 1 in total costs.
93 units; the reduction in labor costs as a percentage of total costs1.
61 single, other cost components are basically consistent with 2017.
In 2018, the company’s overall gross profit margin was 18.
56% year-on-year growth of 1 year.
75 units, the highest value since the company went public.
The gross profit margin of engineering construction business increased by 3 over the same period last year.
94 units contributed most of the profits; the gross profit margins of the equipment manufacturing business and the environmental protection business decreased by 1 respectively.
32 and 2.
Expenses of the company during the reporting year 8.
97%, an average annual decrease of 2 units during the same period, mainly due to exchange gains generated by exchange rate changes during the period, and financial expenses significantly reduced.
The sales expense ratio increased by 0 compared with the same period last year.
19 units; the management expense ratio increased slightly by 0.For 22 units, the financial expense ratio was reduced by 2.
In addition, the company’s R & D expenses are based on revenue.
62%, a small increase of about 0 in 2017.
The company’s period cost control is relatively high, and the ROE is expected to be 17%, which is 3 higher than the same period last year.
53 single, significantly improved profitability.
The total amount of newly signed contracts budgeted the rapid growth of environmental protection business.
In 2018, the company’s new contracts totaled US $ 31 billion, a year-on-year decrease of 14%, which was mainly related to the high base in 2107. Several major orders in Africa led to US $ 35.9 billion in new orders in 2017, an increase of 29%.
Since 2018, the company’s new progress single cases have basically entered the normal and stable development trajectory.
Benefiting from the Belt and Road Initiative, the prospects for overseas markets are broad.
As a global cement engineering leader, the company’s newly signed overseas cement engineering and equipment contracts totaled $ 15.8 billion, accounting for 75% of the company’s total cement engineering and equipment contracts, and more than 131 overseas projects under construction.
Under the “Belt and Road” policy, infrastructure investment in the countries along the route is generally on the rise. Pakistan, Sri Lanka, Bangladesh and other engineering markets have huge potential, and the company ‘s overseas business still has room for development.
Energy-saving and environmental protection business has huge development space.
In 2018, the company’s newly signed environmental protection business contracts continued to grow, and the amount of environmental protection business contracts accounted for 10 of the total number of newly signed contracts.
5%, an increase of 3 per year.
In the next few years, the energy-saving and environmental protection business will usher in a policy “dividend period” with broad development space.
The company’s deployment of cement kiln in Jiangsu, Shandong, Shanxi and other areas to co-process hazardous waste business will bring new profit growth points for the company.
Earnings forecast and investment rating: We expect the company’s earnings from 2019 to 2021 to be 0.
90 yuan, 1.
19 yuan and 1.
30 yuan, corresponding dynamic PE is 9 times, 7 times and 7 times. Considering that the company benefits from the One Belt One Road policy, the cement production line project has outstanding advantages, the entire industry chain serves, and the comprehensive competitiveness is strong; it fully improves resource utilization efficiency and environmental protection business entryDuring the period of rapid development, we maintain the company’s “strongly recommended” investment rating.
Risk warning: Diversification and environmental protection business development is less than expected.