Another rising technology (603601): weak income fluctuations and high growth performance

Key points of the report describe 2019H revenue6.

2 ‰, an increase of 11 in ten years.

5%; Attributable net profit is 0.

98 ppm, an increase of 30 in ten years.

1%, net non-profit increased 37.


2019Q2 revenue 3.

300 million, down 1 year.

1%; attributable net profit is 0.

5 ppm, an increase of 14 in ten years.

8%, deducting non-net profit will increase by 24 per year.


The event comment material business achieved rapid growth, and the purification equipment supply rhythm was transient.

In the first half of the year, the company’s revenue growth mainly came from the materials business (filtration materials + insulation materials). Demand was strong and prices rose steadily.

We judge that the rapid improvement in revenue growth may be mainly due to the weak increase in purification equipment. First, due to the macroeconomic impact, the delay in investment and construction of electronics factories has brought about a problem of supply rhythm. Second, orders from some new markets such as agriculture have not made significant contributions in the first half of the year.

The effect of the company’s technological innovation gradually appeared — the gross 青岛夜网 profit margin in the first half of the year was about 33.

5%, increase by 1 every year.

3 units.

The transition from a small-scale to a large-scale production line, and from a wet process to a dry process, are all industry innovations, and the cumulative effect of conversion technology has appeared. The production efficiency has gradually increased in the past two years.

During the same period, the rate drops by 1 each year.

4 averages, of which the sales rate and management rate decreased by 1.

2, 0.

2 units.

Based on the supply rhythm of purification equipment and the pace of launching new production lines, the company’s revenue growth is expected to accelerate in the second half of the year.

The significant improvement in cash flow was mainly due to the optimization of product structure.

In the first 西安耍耍网 half of the year, the company’s net operating cash flow was approximately 1.

The US $ 300 million is fundamentally improved, or mainly due to the optimization of product structure, that is, the proportion of purification equipment revenue continues to decline, and we judge that this trend is expected to continue.

The company’s positioning of the purification equipment business is more to cultivate and introduce new demand. At present, relying on Youyuan Environment and Shenzhen China Textile, it has entered the new filtration market in the electronics industry, the filtration market in the aquaculture and vaccine industries.

Li Bingmao consolidates core competitiveness.

The company’s core competitiveness lies in: one is the cost advantage brought by resource endowment and technology upgrade; the other is the full-category customization advantage created through the integration of the industrial chain.

The company systematically builds the “raw materials-products-equipment” industry chain. The full range of customized products can meet the needs in different scenarios and gradually change from a single material supplier to a comprehensive service provider. This enables the company to proactively explore new requirements.And when emerging demand starts, it can fully seize market share.

Optimistic about the new market demand, the company’s strong market expansion logic under technical and cost advantages.

The company is expected to have an EPS of approximately 0 in 2019-2021.

31, 0.

43, 0.

56 yuan, corresponding to 22, 16, 12 times the estimated value, maintain the buy rating.

Risk Warning: 1.
The company’s production capacity is expected to be low; 2.
Lower downstream demand growth is expected.