CITIC Haizhi (000099): Increase in gross profit margin and increase one-time income are good for performance

CITIC Haizhi (000099): Increase in gross profit margin and increase one-time income are good for performance

The first quarter of 2019 results are in line with expectations. CITIC Haizhi announced the first quarter of 2019 results: operating income3.

320,000 yuan, an annual increase of 17%; net profit attributable to the parent company is 21.63 million yuan, a year-on-year increase of 48%, corresponding to 0 profit.

04 yuan.

Assume non-recurring gains and losses attributable to the mother’s net profit of 16.31 million yuan, an increase of 8 in the future.

4%, in line with our expectations.

Under the influence of one-time income, the profit in the first quarter increased significantly in ten years.

In the first quarter, the company obtained 7 million in asset disposal income from real estate disposal and reallocated income. The company’s first quarter profit increased by about 16% in ten years, which was basically the same as the growth rate of operating income.

The profit margin of main business gradually increased 2.

6 units.

The company’s main business profit margin doubled in the first quarter.

6 up to 19.

6%, a significant improvement over the same period last year, we estimate or mainly related to the company’s rapid growth in air transport business.

Development Trends International oil prices are picking up, and the offshore oil exploration market is likely to pick 四川耍耍网 up, which is good for the company’s air transportation business.

Affected by the United States’ cessation of Iran ‘s oil sanctions exemption, 1, Brent oil prices rose by more than 2% in a single day.

Since the beginning of 2019, Brent oil prices have increased by about 35%, and the average price since the beginning of the year has been slightly lower than 4% in the same period in 2018.

If the international oil price maintains the current trend, we expect that the rebound in oil prices will drive the demand in the offshore oil exploration market, which will benefit the company’s air transportation business.

Earnings forecasts are in line with expectations, and we maintain our 2019/2020 earnings forecasts1.

31/1.

53 trillion, the corresponding gain is 0.

22/0.

25 yuan.

Estimates and recommendations The company 成都桑拿网 currently has a sustainable response to 201938.

9 times P / E, 1.

6 times P / B.

Maintain Neutral rating and consider the industry’s overall assessment hub to move upwards, raising the target price by 34% to a target price of RMB 7.

70 yuan, corresponding to 35 times P / E in 2019, 1.

5 times P / B, compared with the current bear 9% downside.

Risks Off-demand recovery of offshore oil market demand; RMB depreciated sharply against USD; relevant government subsidies were cancelled.