Weixing New Materials (002372) Quarterly Comment: Short-term and Short-term Results of Revenue Growth under Pressure

Event: The company released the third quarter report of 2019: the company achieved 21 in the first three quarters of 2019.

20 ppm, an increase of 5 in ten years.

15%; net profit attributable to mother 6.

92 ppm, a five-year increase of 5.

86%; net profit of non-attributed mothers 6.

52 ppm, a ten-year increase4.

46%.

Achieved revenue 苏州夜网论坛 of 10 in the third quarter.

1.5 billion, a decrease of 6 every year.

08%; net profit attributable to mother 2.

49 ppm, a reduction of 7 per year.

16%; net profit after returning to the mother 2.

36 ppm, a reduction of 10 per year.

38%.

Opinion: The revenue growth rate breaks quarter by quarter, and the short-term performance is under pressure; new businesses are gradually increasing in volume and are optimistic about future long-term development.

The company’s 19Q1 / Q2 / Q3 revenue was 7 respectively.

82/13.

24/10.

$ 1.5 billion, with annual changes of 17.

89% / 8.

16% /-6.

08%, revenue is obvious quarter by quarter, we think this is due to the poor market sentiment and the use of retail business under pressure.

In the future, the overall market will gradually pick up and infrastructure investment will continue to pick up. The company’s engineering pipeline business is expected to usher in an explosion, driving revenue to bottom out. Gradually, the company accelerates the cultivation of new businesses such as “waterproofing and water purification” that surround traditional pipeline business.Revenue continues to grow at a high rate. In the future, the synergy between new business and traditional business channels will continue to increase, becoming an important engine for future revenue growth.

Gross profit margin remained stable compared to the previous quarter, and net profit margin increased slightly.

The company achieved a gross profit margin of 46 in the first three quarters.

80%, a small margin of 0 a year.

50pct, 19Q1 / Q2 / Q3 gross profit margins are 43.

70% / 47.

93% / 47.

71%, gross profit margin in the third quarter remained basically stable.

In terms of expense ratio, the company’s expenses during the first three quarters of the year21.

12%, a slight decrease of 0 a year.

13pct.

The sales / management / financial expense ratios are 13 respectively.

42% / 8.

43% /-0.

73%, respectively -0.

11/0.26 / -0.

29pct, the overall cost of the period remained stable.

Overall, the company’s net profit for the first three quarters increased by 22.

23%, a slight increase of 0 a year.

16 points.

Earnings forecast and estimation: Affected by the downturn of the industry’s prosperity, we slightly lowered the company’s earnings forecast. It is expected that the company’s EPS in 19-21 will be 0.

68, 0.

78, 0.

87 yuan, corresponding PE is 25X, 22X, 20X.

Maintain “Buy” rating.

Risk Warning: New Business Explodes Less Than Expected, Raw Material Prices Soar