): Fourth-quarter sales surge, scarce growth stocks 武汉夜生活网 in the cement industry

Shangfeng Cement (000672): Fourth-quarter sales surge, scarce growth stock in cement industry

The company’s average price rose in all four seasons, and its profit reached a record high again. It is expected to become a scarce growth stock in the cement industry and maintain an “overweight” rating.

  Maintain the “overweight” rating.

The company predicts that the net profit return to mother in 2019 will be 22.

5-23.

500 million US dollars, an annual increase of 53% -60%, in line with expectations.

We maintain our EPS forecast for 2019-2021.

77, 3.

34, 3.

80 yuan, based on an average 8 times estimate of comparable companies in 2020, raising the target price to 26.

72 (+6.

78) Yuan.

Sales volume maintained high growth in the fourth quarter.

We observe that the East China region has been leading the country in 2019. From October to November, East China Cement maintained a strong demand of 2, and we judge that the company’s sales volume also continued to increase significantly. At the same time, the company acquired Ningxia Meng in August to form a 2500T / D and a 4500T / DThe cement clinker production line Q4 also began to contribute to sales.

Fourth-quarter earnings continued to hit record levels.

According to the performance forecast, the Q4 performance interval is 7.
.

09-8.

At 0.9 billion yuan, our foundry company’s average price of cement clinker ex-factory is about 420 yuan / ton, gross profit per ton is about 240 yuan / ton, and the annual increase is about 15 yuan / ton; net profit per ton exceeds 130 yuan / ton, more than 10 yuan / ton,Continue to create the best profit level in history.

At the same time, the scale of the aggregate business of the beneficiary company has expanded, the company’s aggregate segment has achieved significant growth in profit, and the reorganized sandstone aggregate business has achieved a net profit of approximately 2.

1?
2
300 million, is expected to become a new growth point in profits.

Focus on the main cement industry, develop the industrial chain, and scarce growth stocks in the cement industry.

Recently, the company’s “Strategic Development Plan for Steady Progress, 2019-2021” was released. In the next 3 years, it will focus on the main strategic business and develop the industrial chain, which is expected to become a rare growth target for the cement industry.

The “Plan” aims to increase the cement clinker production capacity by about 70%, the aggregate production capacity has increased from the current 300 tons to more than 1,000 tons, and the environmental protection business strives to account for more than 30% of the company’s revenue.

Risk reminder: The real expansion of real estate investment and the risk of rising raw material costs.