Chengzhi shares (000990): EPS0 in the first half.141 yuan one-wing layout will be strengthened
Event: The company announced the semi-annual report for 2019, which reported a real revenue of 27.1.3 billion, a decrease of 2 a year.33%; net profit attributable to mothers1.72 trillion, down 47.33%; after deduction is 1.82 trillion, down 39.98%; operating cash flow of 78.23 million yuan, a decrease of 83.41%; EPS0.141 yuan. The company achieved revenue of 13 in the second quarter.8.7 billion, an increase of 4 from the previous month.39%; net profit attributable to mothers was 83.86 million yuan, a decrease of 5 from the previous quarter.44%. Multiple factors led to the smallest decrease in performance. The increase in the first half of the performance of the 60 megaton MTO project commissioned company was mainly due to the decline in chemical product prices, increased costs, reduced share loss and supplementary debt interest.In terms of separate businesses, the revenue from the chemical business was twice.97%, gross margin blood pressure 0.98 points, medical services and biomedical revenues increased by 7.24% and 9.87%, gross profit margin changed -5.30 points / + 3.13pct. The main source of profit Nanjing Chengzhi maintained a high load in all installations in the first half of the year. However, due to changes in demand contributed by the industry, crude oil prices fluctuated, trade frictions intensified and downstream demand weakened, and the prices of products such as polyols fell sharply, leading to salesThe increase in income and net profit have an impact.In addition, the development of new businesses led to an increase in administrative expenses.92%, the increase in debt interest led to a 58% increase in financial costs.41%, these two factors also have a certain impact on the first half of the performance.The major Chengzhi Yongqing 60 / year MTO project was successfully commissioned in June, and the company’s revenue will increase in the future. The regional level and volume advantages await the restoration of profitability. Promote the acquisition of Yunnan Hanmeng and strengthen the integration of the two wings. The internal company has initiated and promoted the acquisition of equity of Yunnan Hanmeng and increased capital.The main military industry of Yunnan Hanmeng is processing 杭州桑拿 cannabisdiol and full-spectrum oil from the active ingredients. The business has a similar technical basis with the existing research and development and production of the company’s life science and technology sector.Great advantages and good synergy have strategic significance for the company to enter the industrial hemp industry. After the completion of the acquisition, the company’s “one body and two wings” business layout with Nanjing Chengzhi as the main source of energy and supplemented by functional materials and life technology will be increasingly strengthened. Maintain “Overweight” rating: North American indicators will have a significant impact on the global forecasting market after the expansion of the scale of production.In 2020 and increase the profit forecast for 2021, the net profit is expected to be 5 respectively.81, 8.36, 9.2.8 billion (previous time was 10.82, 11.54—10,000 yuan), the corresponding EPS are 0.46, 0.67.0.74 yuan, the acquisition of industrial cannabis assets opened up the life technology business growth space, maintaining the “overweight” level. Risk reminder: the risk of oil price fluctuations, rising raw material prices, and the advancement of new projects is not as expected.