Monthly Archives: April 2020

Weixing New Materials (002372): Guben Pei Yuanzhi is in the long run

Investment points: The absolute leader in the field of PPR pipes, which will continue to be under pressure in the short term.

The company is the absolute leader of the national PPR pipeline. It has completely overturned the pricing power of the industry by using the “three extremes”. In the inconspicuous industry of pipes, it has achieved profit margins that are difficult for many consumer goods companies.The average value of the control average.

According to our calculations, if we hold 1 share of Weixing New Materials at the closing price of the company’s listing in 2010 to 2019H1, the actual return in the past 9 years is more than 6 times the cost, which is the first in the building materials sector and a well-deserved star stock.
However, this year, due to the replacement of 2C in the 2B market and the sluggish performance of the completed end after the increase in the proportion of refined decoration, the company’s performance has shown a negative growth for the first time since listing, and the market may also challenge the company’s strategic direction and growth.

　　The stock market remains promising.

The current impact of the trend of refined decoration is mainly the newly completed market that year, and the development of the stock market still has great potential.

According to our prediction, the current PPR industry space is about 30.4 billion, of which the total stock market is about 18.5 billion and the new house is 11.9 billion, which is significantly larger than the new house market.

While adhering to the bottom line of cash flow, the newly-completed market demand that Weixing focused on in the past is facing some short-term pressure (substitution of 2B to 2C space); but looking back, it is possible to shift the strategic focus to the stock space and arrange the region’s nationwide.There are still many possibilities in the future. As the “absolute domain” of Weixing, the retail market does not need to be overly pessimistic.

　　”Engineering + Retail” and “Concentric Circle” combined boxing set off.

Looking back at history, the success of Weixing cannot be separated from the “selective” three-time conversion sequence. At present, the macro-environment pressure is reappearing, the company is reviewing the situation, and the combination of “engineering + retail” and “concentric circles” is speeding up comprehensively:Look, shrink, the potential space for construction and municipal engineering is huge, the brand awareness of alternate terminals is increasing, and the company ‘s product audience is widening. It is 上海夜网论坛 a general trend; instead, the company ‘s “concentric circle” strategy has gradually passed the test period and gradually entered the volume phase.Channel advantages are expected to be discounted quickly.

In our view, two high probabilities become new boosters for the company’s long-term growth.

　　Profit forecast and estimation: We believe that the company can still adhere to its original intention (cash flow) during the trough period, but it is actually strengthening its long-term development. It is expected that the further development of the stock market will gradually develop the strength of tooling orders and new business.Expansion, Weixing is expected to return to a better place.

We expect the company to return to its parent net profit for 2019-2021.

5.4 billion, 11.

6.6 billion, 12.

880,000 yuan, corresponding to 佛山桑拿网 0 EPS.

67 yuan, 0.

74 yuan, 0.

82 yuan, currently expected 19-19 years PE corresponding to 19 times, 17 times and 15 times, comparable PE company’s average PE in 19-21 years is 28 times (excluding the outliers in Beixin), 20 times, 16 times, consideringThe company’s cash flow advantage, we believe that the current company still has configuration value, covering for the first time, giving an “overweight” rating.

　　Risk Warning: Expected stock market development is lower than expected, engineering business development exceeds expectations, new business development exceeds expectations

BYD (002594) June sales review: none of the four major families has fallen behind in the second half of the year

[Precautions]BYD released June sales, which sold 26,571 new energy vehicles in a single month in June, YOY + 55.

5%, sales of new energy vehicles gradually from January to June14.

60,000 vehicles, an increase of 95% year-on-year.

Among them, January-June pure electric sales9.

60,000 vehicles, a year-on-year increase of 302%, mixed sales4.

50,000 vehicles, -5% compared to the same period last year.

Fuel cars are gradually sold 8.

20,000 vehicles, -45% year-on-year.

[Comment]The sales of new energy vehicles rose month-on-month, and the main models were steadily sold.

June is the last month of the transition period to supplement the downhill. With the effect of rush installation, the company’s new energy vehicle sales climbed 21% from the previous month.

33%, of which the Tang family sold 6,197 vehicles, a cumulative sales of 49,361 vehicles from January to June; the Qin family sold 7,397 vehicles, from January to June gradually sold 30,420 vehicles, the Song family sold 9,283 vehicles, cumulative56,796 units were sold, 6566 units were sold by the Yuan family, and 43,484 units were gradually sold from January to June.

The dynasty series of models have a clear positioning, a clear division of families, and the performance of each family’s products is balanced, without leaving behind, which reflects the company’s excellent product system building ability.

Sales of the e-series models continued to climb, and the sales of the S2 were dazzling in the first month of listing.

The company is selling new e-series products on the e-net this year, focusing on economical models. It currently has two models, e1 and S2. E1 is a small A00-class electric vehicle.Climbing up, 4168 四川耍耍网 vehicles were sold from April to June.

The S2 is a compact all-electric SUV, which was launched in June. It sold 2061 units in the month of listing and performed well.

In the second half of the year, the company will continuously launch new models of the Dynasty series and the e-series, 7.

11 will launch five SUV Song Pro, divided into fuel version and plug-in version, the smallest are 11-13 thousand, 180,000-200,000.

The crossover e2 hatchback will be launched in August, and the model system will be further enriched.

We estimate that the company’s operating income for the years 19, 20 and 21 will be 1553, 1797, and 192.9 billion US dollars, respectively, and the net profit attributable to the parent will be 28.

58, 30.

81, 31.

4.4 billion yuan, with EPS of 1.

05, 1.

13, 1.

15 yuan, corresponding 杭州桑拿网 to 50 for PE.

8, 47.

2.46.

2 times, maintaining the “overweight” level.

[Risk reminder]The market demand for new energy passenger cars is less than expected, and the company’s production and sales are disrupted; the impact of supplementary declines on market disturbances is greater than expected;