BYD (002594) 2019 Semi-annual Report Comment: New Energy Vehicles Have Significant Advantages

BYD (002594) 2019 Semi-annual Report Comment: New Energy Vehicles Have Significant Advantages

Company dynamics The company released the semi-annual report for 2019, and achieved operating income of 621 in the first half of the year.

8.4 billion, an annual increase of 14.

84, net profit attributable to mother 14.

5.5 billion US dollars, an annual increase of 203.


The company expects a profit of 15 in the first three quarters.

5.5 billion to 17.

$ 5.5 billion, an increase of 1 per year.

83% to 14.


  Matters commented that in the first half of the year, the growth of the new energy vehicles subsided and the decline in the subsidy of new energy vehicles caused Q3’s profit-bearing company to achieve a contrarian growth, of which Q2 achieved total operating income of 318.

80 ppm, a ten-year increase of 8.

39%, net profit attributable to mother 7.

50,000 yuan, an increase of 87 in ten years.


Benefiting from the rapid growth in sales of new energy vehicles and the significant increase in the share of mobile phone assembly business, the company’s automobile and mobile phone business revenues grew well, reaching 339 in the first half of the year.

8.2 billion and 233.

23 ‰, the annual growth rate reached 16.

27% and 14.


Revenues from secondary rechargeable batteries and photovoltaic business declined slightly.

In the second half of the year, new energy vehicle subsidies receded, and demand infiltration and other factors led to the company’s Q3 profit pressure. It is expected that Q3 profit will be 100 million to 300 million US dollars, down 90%.

46% to 71.


  The gross profit margin of automobile business sales improved significantly, and the company’s gross profit margin was 17 in the first half of the year when the expenses were well controlled.

14%, an increase of 1 over the same period last year.

21pct, of which Q2 sales gross margin is 15.

34%, a year-on-year increase of 0.

44 points.

The improvement of the company’s gross profit margin was mainly due to the recovery of the gross profit margin of the automotive business, with a margin increase of 5%.

89pct, while the gross profit margin of the mobile phone business decreased by 3.

81 points.

In terms of period expenses, the company’s sales expense ratio in the first half of the year decreased by 1 year-on-year.

15pct, making the period expense rate improve by 1 compared with the same period last year.

07 points.

  The market share of new energy vehicles increased rapidly, and the company’s car sales reached 22 in the first half of the year.

810,000 vehicles, an annual increase of 1.

59%, far better than the industry 杭州桑拿网 level; sales of new energy vehicles reached 14.570,000 units, an increase of 94 in ten years.

50%, the market share rose from 20% in 2018 to 24%.

The company has continuously improved the new energy vehicle product line. In the first half of the year, it launched a new generation of Tang EVs, new Song Max plug-in hybrid versions, new Yuan EVs, and new models e1 and S2.Song Pro, an A + -class SUV, will launch e2, e3, and new Qin EV models in the second half of the year to consolidate its competitive advantage in the new energy vehicle sector.

  The investment proposal estimates that the company’s net profit attributable to shareholders of the parent company from 2019 to 2021 will be 29.

09 billion, 35.

1 billion, 43.

9.8 billion yuan, corresponding to an EPS of 1.

07 yuan, 1.

29 yuan, 1.

61 yuan, the corresponding PE is 48 times, 40 times, 32 times, maintaining the “overweight” level.

  Risks indicate that car sales are less than expected; risks of changes in industry policies, etc.

Annual report series of TMT company special analysis (12)-Huiyuan Technology (832028): differentiated competition + qualification barriers + diversified layout rapid growth in 2018 performance

Annual report series of TMT company special analysis (12)-Huiyuan Technology (832028): differentiated competition + qualification barriers + diversified layout rapid growth in 2018 performance

Event: The company released its 2018 annual report and achieved operating income2.

53 trillion, a decrease of 14 a year.

91%; net profit attributable to mother was 8,128.

280,000 yuan, an increase of 60 in ten years.

39%; net profit after non-recurring gains and losses is 7191.

280,000 yuan, an increase of 55 in ten years.


(Company Annual Report) Third-party payment solution service provider, focusing on B-side customers: The company adheres to the strategic positioning of “Remittance, Smart Finance, Huisheng”, focusing on providing Internet payments, pre-estimated card payments, and aggregation for B-side corporate customers.Payment solutions, customized payment solutions and other payment and financial information services, providing customized, big data precision marketing, one-stop, comprehensive, efficient payment and financial technology solutions.

The company’s source of income is mainly to include service fees or transaction commissions while providing services.

(Company annual report) Industry policy adjustment + industry competition intensifies, and the company’s optimization model adjustment structure has achieved initial results: the transformation of industry policy adjustment and economic cycle, the application scenarios and value-added service competition of third-party payment markets intensified, and the company’s operating income in 2018At least slightly down.

The company continuously optimizes its business model, continuously integrates overall high-quality resources, and condenses the overall team. Operating costs and expenses have been reduced compared to the previous year, and the net profit returned to the mother increased by 60.


Net cash flow from operating activities1.

880,000 yuan, an increase of 147 in ten years.

37%, because the company received a lot of donations in 2018.

(Company Annual Report) The effect of differentiated competition is significant and the penetration rate in the entertainment industry is high: third-party payment is a highly market-oriented Internet financial business. The company has adopted a differentiated competition strategy since 2008, focusing on digital entertainment and finance.In the field of science and technology, it is a leader in the industry.

The offline payment product “Currency and Cash Collection” is based on the concept of wide payment, and docks to extend the mobile terminal of the payment platform; the prepaid card brand “Jun Card” has a market share.

After years of industry accumulation, company-scale products have a strong brand effect in the industry. Customers cover Tencent Games, Perfect World, Giant Network, Shanda Network, Sohu Changyou, Netease Games and other hundreds of game operators. User loyaltyIt has a high degree of recognition in the market and has a great advantage in terms of user attachment and trust.

(Company annual report) The company and its wholly-owned subsidiaries have many license qualifications, forming a certain barrier of protection: in the field of non-bank third-party payment business, enter the high-level above the door.

The company ‘s wholly-owned subsidiary ‘s Internet payment business brand “Huifubao” is a third-party payment platform licensed by the People ‘s Bank of China. It has a third-party payment license, has passed CFCA technology certification, and ranks among the top in the field of payment services.

After years of hard work, the company has a well-known brand effect in the industry. It is a professional and secure Internet payment platform that covers PC and mobile terminals. It is known as an expert on wide-range payment solutions and customized payment solutions.

(Company Annual Report) Focus on independent research and development and improve core technology: The company has a professional independent research and development team, and constantly attracts the best talents in the industry through various incentives to maintain the industry’s leading 杭州桑拿 technology and continuous innovation ability.

By the end of 2018, the company had 94 software copyrights with independent intellectual property rights, and all of them had been applied to actual business services.

The core technology ensures that the company’s product and service platform can operate safely, stably, and efficiently, and enhances the company’s competitiveness.

(Company annual report) The development of payment ecology is diversified, and the layout of “payment + fintech”: the report summarizes, the company focuses on vertical fields, with multi-type product systems such as Huipay, CRM system, foreign exchange cashier, applets, marketing cards and coupons, etc.Corporate users provide customized payment service solutions, while improving corporate payment efficiency, they provide support in many aspects such as precision marketing, reconciliation, corporate fund management, and supply chain finance.

In the future, the company will further realize the diversified development of the fintech ecosystem with payment as its core, empower big-end merchants with innovative technology applications such as big data analysis and blockchain, complete the “payment + fintech” business layout, and continuously improve the company.Core competitiveness and value.

(Company Annual Report) Investment Suggestion: Terminate to the latest company market size.

1.7 billion, PE is 8.

8X, it is recommended to pay attention.

Risk Warning: Risk of policy change, business growth is less than expected, market competition risk

Gezhouba (600068): Proposed transfer of Hubei Daguangbei Expressway-Revitalizing existing assets to feed back the main business

Gezhouba (600068): Proposed transfer of Hubei Daguangbei Expressway-Revitalizing existing assets to feed back the main business
The company announced on October 23 that it plans to pre-list on the Beijing Stock Exchange and transfer 100% of its equity in the Hubei Daguangbei Expressway.Our comments are as follows: In the first half of the year, the Daguangbei Expressway operated well. Through the transfer of the company, the stock assets will be revitalized, the investment will be recovered in advance, and sufficient funds will be provided to support the sustainable and stable development of the main construction industry.Taking into account the uncertainties in equity transfers, continued tightening of PPP and consolidation of environmental protection business, we slightly cut our EPS forecast for 2019-21 to 0.99/1.15/1.34 yuan, maintain “Buy” rating. The operating profit of Daguangbei Expressway in 2019H1 is good, and the company can revitalize the existing assets by transferring the company’s assets to realize the early recovery of investment.Hubei Daguangbei Expressway is 147 kilometers, with a total investment of 54.02 million, the company began operations in 2009 after the completion of the project.Benefiting from the increase in traffic flow, Daguangbei Highway’s operating profit was good in the first half of this year, and its 2019H1 revenue / net profit was 2.64/0.72 ppm (earnings / net profit at the beginning of 2018 was 4.52 ppm / 709 million).At present, the concession right of the highway still expires in 20 years, and the net assets of the highway as of the first half of this year are 11.600 million. It is estimated that through the transfer of the Daguangbei Expressway, the company can revitalize the existing assets and realize the early recovery of investment. The strategic transformation is steadily advancing, and the main construction 深圳SPA会所 industry level is strengthened; revitalizing the existing assets will provide sufficient funds, and the company’s business will continue to grow steadily.Since last year, the company has developed a sound strategy to formulate “investment and business development” to promote the development of the general contracting business with investment and strengthen the main business layout of the building. Under the current macro background such as deleveraging and supply-side reforms, it is expected that revitalizing existing assets will provide the company withWith sufficient funds, the company’s business continued to develop steadily.As the strategic transformation advances, we expect construction orders to continue to stabilize and rebound. Q3 orders have grown steadily as a whole, and the effects of domestic professional transformation have begun to appear.On January 9, 2019, the company’s unit price in the new millennium was US $ 169.9 billion, a decade of +15.5%; Q3 single season new year single 295.8 ‰, +8 for ten years.6%.By region, the overseas / domestic new signing in January-September 2019 was 688 / 1,011 trillion, +28 in ten years.7% / + 7.9%. The growth of new overseas signings is still at a high level. The growth rate of new domestic signings has changed from negative to positive. The company specializes in the transformation of construction subsidiaries every year, and transforms the traditionally divided business areas by regions into specialized companies.It is expected to enhance the company’s resource integration capabilities and support the steady growth of the construction business. Risk factors: environmental protection business launch, PPP implementation, infrastructure investment recovery is less than expected; overseas operation risks; equity transfer uncertainty. Investment suggestion: Considering the uncertainty of equity transfer, the continued tightening of PPP and the consolidation of environmental protection business, we slightly cut our EPS forecast for 2019-21 to 0.99/1.15/1.34 yuan (previous forecast 1).02/1.18/1.38 yuan), the corresponding PE is 5.9x / 5.1x / 4.4x, maintain “Buy” rating.

Century Huatong (002602) company comment: continue to deepen cooperation with core shareholder Tencent and actively focus on landing

Century Huatong (002602) company comment: continue to deepen cooperation with core shareholder Tencent and actively focus on landing

Event: Shengyue Networks, a wholly-owned subsidiary of Century Huatong, and Tencent signed the “Business Cooperation 北京夜生活网 Agreement” in Shenzhen on November 29, renewing the original business cooperation agreement (extended on January 16, 2018), and further leveraged the resources of both parties in their respective fieldsAdvantage, in-depth business cooperation in the field of digital interactive entertainment.

  As the company’s core shareholder, Tencent will maintain close cooperation and resource sharing with the company.

Tencent currently holds Century Huatong 4.

96% of the shares rank among the top ten shareholders of the company.

Tencent is both the company’s shareholder and the company’s important media resource purchaser. This agreement proves that the two parties will further deepen resources and platform cooperation and sharing in the future. Tencent further locks the company’s exclusive preferential cooperation rights for high-quality game content (the company has never had a new game in mainland China).And exclusive preferential cooperation rights in the distribution and operation of certain designated overseas regions), optimistic about the company’s research and development capabilities, and the company will continue to maintain close cooperation with Tencent in terms of game IP reserves and overseas distribution.

  Shengqu R & D + Tencent’s unique historical achievements: “Legend of Blood” launched in Q3 in 2015, “Dragon Valley Mobile Games” and “Legendary World” launched in Q1 2017, and “Legendary World 3D” launched in Q4 2018″.
Among them, “Dragon Valley” has more than 1 billion running water in the first month, and Tencent’s exclusive agent sequel “Dragon Valley 2” is waiting for the version number to land. It is expected to be officially launched in 20Q1. We expect that the company will have at least 3 self-developed products in 20 years.Launched exclusively by Tencent.

  The recent ownership of the “Legend” copyright is further clear, and the company is expected to deepen its development in the “Legend” category.

  On November 28, the company announced that it had received a judgment from the Wuhu Intermediate People’s Court of Anhui Province. In Korea Entertainment Virtue, the company accused the mobile game “Dragon Breaking Dawn” authorized by the company’s affiliated Sheng game “Legend World” to be infringed on copyright.In the case, the entertainment virtue company’s claim was completely rejected by the court according to law, and the court further clearly determined that the third party carried out the adaptation, development, and operation without any explicit or implicit permission and consent of the third party.

  On October 14, the company announced that it had received a judgment from the South Korean court. The “Judgment” rejected all claims of entertainment virtues and Korean legendary companies, and Shengqu Games and its affiliates continued to use the “legendary” copyright agreement.

The agreement stipulates that Shengqu has exclusive rights to the “Legend” game in Mainland China.

  Investment perspective: The strategic cooperation agreement announced this time is a framework agreement. In the future, specific implementation content, operational details, segmentation ratios, etc. will reach supplementary specific contracts, and the specific implementation of subsequent agreements will help the company to further expand and enhance its business.Will have a positive impact on the company’s development.

The company is expected to strengthen cooperation with Tencent, achieve win-win and mutual benefit, and rely on Tencent’s further stable market development leader position. 20Q1 company’s self-developed game + Tencent’s unique “Dragon Valley 2” performance is expected, and it is recommended to pay attention to the company’s equity structure to promote continuedoptimization.
We estimate that the company’s net 杭州夜网论坛 profit attributable to its parent for the year 19-21 will be 30.


2/50 billion, an increase of 214% (not readjusted) / 33% / 24%, corresponding to an estimated 19x / 15x / 12x, as one of the leading players in the game industry globally, we give the company a 20X target estimate for 20With a target price of 13.

4 yuan, maintain “Buy” rating.

  Risk reminder: The version number is not approved in time, the online time or game performance exceeds expectations, overseas promotion is blocked, the governance structure is improved, and industry supervision is tightened.

Changshu Bank (601128): Vigorously Consolidate Poor Provisions to a New Low

Changshu Bank (601128): Vigorously Consolidate Poor Provisions to a New Low

Event: On March 4, 2019, Changshu Bank disclosed the 2018 results flash report.

In 2018, it achieved operating income of 5.8 billion yuan, an increase of 16 in ten years.

2%; net profit attributable to mothers was 150,000 yuan, an increase of 18 year-on-year.

1%, basically in line with market expectations; in the fourth quarter of 2018, the negative growth was 0.

97%, a quarter-on-quarter decrease of 3bps and a provision coverage rate of 450.

01%, a quarter-on-quarter increase of 43.

3 units.

The non-performing ratio was reduced by less than 1%, and the provisions were vigorously consolidated to fully demonstrate a prudent and prudent operating style.

The non-performing rate of Changshu Bank had an inflection point as early as 2016 and then decreased quarter by quarter.

97%. This is the third bank with a non-performing ratio as low as 1% except Bank of Ningbo and Bank of Nanjing.

At the same time, according to our calculations, the non-performing generation rate of Changshu Bank’s write-backs increased by only 11bps to 72bps in 18 years, which is still at the same level as listed banks.

Therefore, whether it is the trend of marginal changes in asset quality or some overdue loan rate (1.

06%, only slightly higher than the Bank of Ningbo), non-performing identification (“more than 90 days overdue / non-performing loan” as low as 62.

2%) and other indicators of static performance, Changshu Bank has been significantly engaged in this industry.

What also needs to be seen is that in 4Q18, the bank’s provision coverage ratio of Changshu Bank increased by 124, 43 and 450%, respectively.

Even in the current economic downturn cycle, we believe that there is no historical baggage, and the prudent business philosophy of overlapping and continually consolidating provisions will still help Changshu Bank’s asset quality significantly overlap with its peers.

而对于某些部分投资者担心的小微贷款资产质量问题,减少,我们认为常熟银行长期优秀的资产质量指标已经在一定程度上转化了答案;替代,我们在2018年11月19日 日发布的The in-depth report (“Changshu Bank: Ten-Year Sword, Benchmarking Bank for Small and Micro Services”) also carried out a detailed analysis. In fact, the small and micro loan NPL ratio of Changshu Bank is even lower than the total loan NPL ratio.
Obviously, in the fourth quarter, the growth rate of the provision and pressure drop has been in line with market expectations, but even with a significant increase in provision coverage ratio of more than 40 cases, Changshu 北京夜网 Bank still maintained high profitability.

In 18 years, Changshu Bank’s net profit attributable to mothers grew at an annual rate of 18.

1%, which is expected to be the second highest level for 25 banks (excluding the newest banks listed since 2018).

From the perspective of revenue, the cumulative annual revenue growth rate on January 18, 2018 was 12 respectively.

5%, 16.

3%, 18.

3% and 16.

2%, about 4Q18 revenue growth has improved, we judge that it is more due to the adjustment of credit structure, has nothing to do with the credit line: increased debt growth in 18 years.

3% in the third quarter of 2018 compared with the previous growth rate (22.

7%) Sudden change in value and expansion. This is related to the common rhythm of bank credit before and after it is released; gradually, it is expected that this is to optimize the credit structure due to the strict control of risks and the continuous return to the core business.

Comparing 17-year and 1H18 retail loan structures, it is not difficult to find that 1H18 consumer loans have a significant drop of 14% month-on-month, while personal business loans have increased 27% month-on-month.

5%, the proportion of retail loans rose to 63.

4%, we judge that the expansion of consumer credit in 2H18.

At the same time, Changshu Bank’s strategic model with operating loans as its focus shifted to a high-yield feature with an interest margin (measured 3Q18: 3).

03%) In fact, it is ahead of its peers. Unless it is in the current wide currency and small and micro loan price limit, Changshu Bank is rooted in local small and micro, and the credit distribution strategy of differentiated development of personal business loans will still have the loan bargaining power of ownership.

Taking advantage of the policy and surpassing the fundamentals of excellence, we will jointly help Changshu Bank to become a huge beneficiary in the current environment of supporting small and micro-private development, and also set a reference benchmark for similar comparable banks.

Considering that Changshu Bank’s performance growth continues to be ahead of its peers, and it is deeply cultivated and small, the development model centered on personal business loans has become a fundamental advantage with high interest spreads and low non-performing, and the 18-year ROE has maintained a rising trend.Banks with proven small and micro service capabilities are the core beneficiaries of financial supply-side reforms. We will evaluate the target in January 1919.

4x PB raised to 1.

55 times, the net profit attributable to mothers is expected to increase by 18 from 2018 to 2020.

1%, 18.

8%, 19.6% (previous forecast was 25.

8%, 26.

3%, 27.

2%, based on prudent attitude and high provision), currently corresponds to 19 years 1 every year.

21 times PB, corresponding to 28% of upside, maintaining the buying level.

Risk Warning: The severe economic downturn has caused bad risks for the industry.

Yangnong Chemical (600486) 2019 First Quarterly Report Review: Performance Exceeds Expectations, Rudong’s Long-Term Development

Yangnong Chemical (600486) 2019 First Quarterly Report Review: Performance Exceeds Expectations, Rudong’s Long-Term Development

The core point of view is that the company has entered the gold growth stage, and its profit is expected to increase at the same time. Maintain the company’s EPS forecast for 2019/20/21 to 3.



24 yuan, maintain a target price of 75 yuan (corresponding to 22 times PE in 2019), and continue to “Buy” rating.

In the first quarter of 2019, the report exceeded expectations, and the net profit attributed to mothers increased by 19 in ten years.


The company achieved operating income of 15 in the first quarter of 2019.

700 million, down 2 every year.

5%; net profit attributable to mother 3.

27 ppm, an increase of 19 per year.


The quarter-on-quarter drop in herbicide dose price should be an important reason for the unsatisfactory fourth quarter performance.

However, on the whole, the new product dicamba and the stable consolidation of pyrethrin accompanied the company’s revenue growth. The company’s performance has been consolidated on the 400-500 million platform, and it has taken another step.The ability is continuously verified, and the development of new projects in the future will enter the golden development period.

Pyrethroid donors are expected to continue to grow in average price.

In the first quarter of 2019, pesticide sales were 4,112 tons, an increase of 16% from 3,545 tons in the first quarter of 2018. This quarter’s sales reached a new high in recent years.

From the average price of products, the quarterly price from 2018 to the first quarter of 2019 was 21.





760,000 / ton, the average price in the latest quarter has increased by more than 17%, compared with the fourth quarter of 2018, there is still an increase (increased by 5).


Judging from the current supply and demand pattern and the current severe environmental protection expectations in China, it is expected that the 深圳桑拿网 high price will be maintained and a new wave of growth will be ushered in the next three to four quarters.

Herbicide sales have been affected and prices have rebounded.

In the first quarter of 2019, sales of herbicides reached 10,584 tons, a significant decrease (down 43%) from 18,417 tons in the first quarter of 2018.

In terms of product prices, the quarterly prices from 2018 to the first quarter of 2019 were 3.





The price in the latest quarter dropped by 23% year-on-year and rebounded month-on-month (up 17%).

The proportion of dicamba sales decreased; the price of dicamba continued to decrease slightly.

Although dicamba may be less affected than expected by the overseas market in the second half of the year, in the long run, the promotion of Monsanto’s new seeds and dicamba mixtures is a general trend, and orders may increase, but the future potential remains bright.

Layout of multi-product capacity, optimistic about the company’s long-term growth capabilities.

The company has disclosed a number of investment plans including self-construction and acquisition, including: 1) Announced investment on October 13, 20184.

USD 300 million to construct a project of 3,800 tons / year of bifenthrin, 1,000 tons / year of flufenamid, 120 tons / year of santhrin and 200 tons / year of hydroxyphenyl pesticides; 2) Investment announced on April 24, 20182 billion construction of 32,600 tons / year pesticide preparation project; 3) announced on April 14, 2017 investment and construction of 11,475 tons / year pesticide, 1,000 tons / year herbicide and 3,000 tons / year fungicide project; 4) 20188月 月陆续公布拟议收购南通宝叶化工,中化作物及农研公司。
The multi-product capacity layout promotes the company to accelerate the implementation of the coastal development strategy, adjust the production layout, gradually realize product serialization and high-end, and cultivate long-term performance growth points of the company.

According to the data disclosed in the annual report, the three-phase project and the preparation project have already spent 12.71 million yuan and 2.46 million yuan respectively. Once the project is officially started, it is likely that the investment and construction experience of Yangnong will be completed in half a year to the third quarter in advanceSuccess, is expected to contribute quickly to the company’s performance. Risk factors: 1) The release of dicamba is less than expected; 2) The price of pyrethroid drops; 3) The production capacity is not expected.

Maintain “Buy” rating.

As a domestic pesticide leader, the company’s main products are herbicides and insecticides, which are well-positioned under the new environment of high pressure and environmental protection.May usher in a new round of growth in the next three to four quarters.

It is optimistic that the company has entered the gold growth stage, and its profit is expected to increase at the same time.

Maintain the company’s EPS forecast for 2019/20/21 to 3.



24 yuan, maintain target price of 75 yuan, continue to “Buy” rating.

Sunong Bank (603323): Major shareholders increase their stability and have been watching the company’s long-term investment value

Sunong Bank (603323): Major shareholders increase their stability and have been watching the company’s 杭州夜网 long-term investment value
Event: On June 20th, Sunong Bank issued an announcement on stabilizing the previous plan. Opinion: The major shareholders intend to increase and remain unchanged, showing their confidence in the company’s long-term development prospects.From May 17 to June 14, the closing price of Sunong Bank for 20 consecutive trading days was lower than the net assets, triggering the company’s stability measures.The company plans to adopt shareholders holding more than 5% of the shares (including Hengtong Group, New Hengtong Group and Global Asia Industrial) to serve as directors (except independent directors) of the company in a timely manner.The total amount to be increased is not less than RMB 13.74 million.Listed companies’ major shareholders and directors’ increased holdings of shares means that they have a solid and long-term development prospect for the company, firmly recognize the company’s investment value, and at the same time strengthen investors’ confidence in Sunan Bank, which will play a greater role in stabilizing the company. Suning Bank successfully changed its name and has ample room for business expansion.In March of this year, the company was renamed from “Jiangsu Wujiang Rural Commercial Bank” to “Jiangsu Suzhou Rural Commercial Bank”, and its business scope also expanded from Wujiang District to the entire city of Suzhou.The size of Suzhou’s GDP in 2018 was 1.86 trillion US dollars, and Wujiang District’s GDP is about one tenth of that. The expansion of business areas will have a significant impact on the scale of assets.At the end of the first quarter, the bank loan balance was 60 billion yuan, exceeding +22.1%, the growth rate increased by 1 compared with 2018.0 shares per share; deposit balance of 85.3 billion yuan, +21 for the year.6%, an increase of 5% over 2018.8 units.At the same time, the increase in capital adequacy ratio and Tier 1 capital adequacy ratio were 15 at the end of the first quarter.1%, 12.5%, providing sufficient capital support for business expansion. The amount of non-performing loans and the non-performing ratio both decreased, and the provision coverage ratio increased significantly.At the end of the first quarter, the non-performing ratio of Sunong Bank fell by 1.25% (2018: 1.31%), provision coverage ratio rose to 264% (2018: 248%).The non-performing loan balance was 7.8 ‰, at least -1.7%, non-performing balance fell for two consecutive quarters.At the end of 2018, the overdue loan interval was -15.0% to 9.400 million, loans overdue for more than 90 days extended by -15.1% to 5.500 million, and bad transcendence replaced 69.8% (2018H: 92.5%), and the criteria for bad confirmation are more stringent. Investment suggestion: The major shareholders of 成都桑拿网 Suning Bank intend to increase their holdings for stability, demonstrating confidence in the company’s long-term development prospects; after the company was renamed, the business scope was expanded to Suzhou, and the capital adequacy ratio business scale was expanded; asset quality was optimized, and risk resistance was enhanced.YOY net profit attributable to mothers is expected to be 14 in 19/20.1% / 12.3%, corresponding to BVPS6.9/7.5 yuan, the current price is 0.83/0.76 times PB.Target price for 2019 is 6.9 yuan, corresponding to 1 PB, 20% of the current price space, given an “overweight” rating. Risk warning: the risk of macroeconomic downturn; credit default exceeds expectations; high write-offs may erode performance.

Tongwei (600438): Silicon material, the bottom profit of the battery chip can be expected in the future

Tongwei (600438): Silicon material, the bottom profit of the battery chip can be expected in the future
Recommended logic: The photovoltaic industry is gradually moving towards parity. As a leader in silicon materials and cells, the company will fully benefit from the industry’s shift from cycle to growth; the company will continue to expand its production in 2020.6-inch, 10GW battery chip, further increasing the concentration of the industry; At present, silicon materials and battery chips are at the bottom of profitability, and there is great flexibility in upward repair. Rapid expansion of production to create a dual leader of silicon materials and cells: Since the company’s in-depth layout of the photovoltaic industry in 2016, its revenue and net profit have been in a steady growth trend, forming a dual-main industry development pattern of “photovoltaics” and “agriculture”.The company has been in a period of rapid expansion in recent years, expanding the production of silicon materials and battery cells. The vertical capital expansion in 2018 was 71.2 ppm, an increase of 773 over 2016.6%, the rapid deployment of production capacity has expanded the company’s foundation to become a silicon material + battery chip double penetration leader. Parity opens up the growth attribute: In the past, due to the supplementary existence of the photovoltaic industry, there were two characteristics of “cash flow difference” and “large cyclical variability”. These are the two big mountains of photovoltaic industry growth and valuation.After dating the bidding mechanism in 2019, the average bidding price of the first, second, and third type of resource regions decreased by 0 compared to the benchmark power price in 2018.22 yuan / kwh, 0.28 yuan / kwh, 0.29 yuan / kwh, the average compensation ratio has been repeated 20.2%, 10.2%, 16.3%.At the same time, 2019 is the first year of domestic “photovoltaic parity”, with a total of 14 reported.79GW parity photovoltaic project.The advent of the parity era will effectively improve two major factors. Silicon materials and battery cells are in the bottom range, and the upward repair flexibility is great: the price of silicon materials has been declining all the way from the end of 2017, and has plummeted from a high to 50% to 6.5?7.At the level of about 4 million / ton, the “old capacity” 苏州桑拿网 that has been expanded before 2017 is basically in transition. At present, the leading companies in battery chips have a gross profit margin of about 10%, and most of them are in a state of substitution.As a manufacturing product with a relatively low depreciation ratio, the state of the entire industry is difficult to continue. Overlapping demand in the fourth quarter is gradually picking up. At present, prices have entered the repair stage and profits will gradually rise. The capacity of silicon materials and battery cells is rapidly expanding, and the scale advantage is obvious: the company’s silicon materials have now formed 8 production capacities, and the battery cells have formed 20GW production capacity, ranking the second and first in the world respectively.The company will continue to expand production in 2020.In 杭州夜生活网 6 seconds, the battery chip is 10GW, which further enhances the industry concentration and consolidates the company’s scale advantage in silicon materials and solar cell replacement.The gradual release of new production capacity of silicon materials and cells will significantly reduce the average production cost in 2020 and help the company’s performance growth. Earnings forecast and investment advice: Expected company 2019?In 2021, the EPS will be 0.72, 0.90, 1.17 yuan, the corresponding PE is 16X, 13X and 10X, which are lower than the average estimated level of the photovoltaic sector, given 18X conversion in 2020, corresponding to the target price of 16.2 yuan, maintain “Buy” rating. Risk warning: overseas photovoltaic market may be less than expected risk, cell expansion or may be less than expected risk.

Perfect World (002624): Steady growth of non-net profit and improvement in cash flow. Significantly look forward to Q4 new product launch.

Perfect World (002624): Steady growth of non-net profit and improvement in cash flow. Significantly look forward to Q4 new product launch.

The main points of the report describe the company’s third quarter report for 2019. In the first three quarters of 2019, the company achieved operating income of 58.

1.2 billion, an annual increase of 5.

43%, net profit attributable to mother 14.

7.6 billion yuan, an increase of 12% 佛山桑拿网 year-on-year, and net profit of non-attributed mothers14.

2 billion, an annual increase of 28.


  Incident Review The company’s third-quarter results are in line with expectations, and cash flow has improved significantly. New games have driven Q3 revenue to increase sequentially. The decrease in Q3’s single-quarter net profit was due to the distribution of disposal benefits in the same period last year. The deduction of non-net profit can better reflect the overall situation of the company.

1) The company’s first three quarters of 2019’s results are in line with the capital market forecast. Q3’s single-quarter net profit has gradually decreased and the 18Q3 company has disposed of part of the equity of Zulong Technology, a joint venture, and confirmed non-recurring profit and loss1.

US $ 100 million. There was no such large non-recurring income in 19Q3, which resulted in the replacement of net profit attributable to the mother in 19Q3. 2) The company’s net operating cash flow in the first three quarters.

1.7 billion, an improvement over the past, of which Q3 net operating cash flow in a single quarter6.

5 billion, higher than net profit, mainly due to core game payments and film and television expansion and replacement.

  ”Perfect World” currently has stable running water. The new products “The Condor Heroes 2” and “Four Seasons Songs in Cloud Dreams” have performed well, prompting the company to increase its non-net profit significantly, and optimistic about the “My Origin” that will be launched in Q4.”Dream Collection Cygnus”, “Swordsman” and so on.

1) The “Perfect World” mobile game was officially launched in March. At present, the monthly flow is estimated to be about 200-300 million. Q1-Q3 deducted non-net profit increased by 28.

47%, mainly benefiting from new games such as “Perfect World”, “Grand Condor 2” and “Four Seasons Songs in Cloud Dreams”; 2) Products that may be launched on the company Q4 include: “My Origins” (fixed November 15th) (Day), “Dream Collection Cygnus” (opened in September), “Xiao Xiao Ao Jiang Hu” (obtained version number on October 23).

  Looking at 5G for a long time will catalyze the development of cloud games and VR / AR games. Toutiao, iQiyi actively participates in the game distribution market. The company’s research and development-based approach will benefit the industry’s development trend for a long time.

1) Driven by 5G, the rise of cloud gaming platforms will definitely benefit console game vendors first, and Perfect World is the only console game vendor in the stock market, which will benefit from the rise of cloud gaming.

2) Toutiao, iQiyi has successively participated in the game publishing business and competed with Tencent. It may increase the segmentation ratio of developers in the future. The company has the advantage in content developers and will supplement the R & D team in 2018. The advantages of gradually expanding will be further highlighted.
  The company’s heavy game products are coming online one after another. We believe that it will enter a high growth channel in 2019. It is predicted that the company’s net profit attributable to mothers in 2019-2021 will be 20 respectively.

4.9 billion, 22.

85 billion, 25.

1.3 billion, corresponding to PE of 18.

02 times, 16.

16 times, 14.

70 times, give “Buy” rating.

  Risk Warning: 1.

Growth in the gaming industry 2.

The company’s new products were postponed.

Tiankang Bio (002100): High-speed growth in pig production

Tiankang Bio (002100): High-speed growth in pig production

Core views: 1. The event company released a live pig sales report for July 2019.

2. Our Analysis and Judgment 1) The growth of live pigs in the slaughterhouse has maintained a rapid growth, and the increase in volume and price has helped the performance increase.

190,000 heads, +25.

24%, ten years +93.

06%; realized sales revenue1.

2.2 billion, +34.

92%, ten years +134.


On January 7, 2019, the company gradually sold live pigs 48.

980,000 heads, +36 in ten years.

28%; progressive sales income 5.

22 trillion, +45 a year.


We believe that under the severe background of African swine fever epidemic, relying on the company’s own disease prevention and control capabilities and management capabilities, the number of pigs on the market has continued to grow rapidly.

According to Boya and Hexun statistics, in July 2019, the average price of live pigs (three yuan) in Henan in Xinjiang was 16.

46 yuan / kg, 18.

15 yuan / kg, +23 from the previous month.

64%, +7.


The pig price in the province where the company’s pig breeding is located has maintained an upward trend. We believe that the gap between the supply and demand of pigs will increase in the future, and a new high pig price will be necessary.The company’s pig production volume may reach 1 million heads / 2 million heads, and the pig breeding business will significantly improve the company’s performance.

2) The vaccine category is rich, and the future vaccine market has huge potential. In 2018, the company’s animal vaccine business contributed about 14 in revenue.

22%,重庆耍耍网 contributing about 39 gross profit.

85%, becoming the main force of the company’s performance contribution.

The company’s income from recruiting seedlings has remained basically stable. The sales of market seedlings have increased, and the sales of foot-and-mouth disease OA two-valent vaccines have been increased. The sales of classical swine fever E2 have reached a level of 19 years.

At the level of hardware facilities, the company has begun to build P3 animal inspection rooms and laboratories to respond to policy requirements and improve safety protection.

In addition, we believe that progress has been made in the development of African swine fever vaccine in the future. After the vaccine is produced and sold, it will bring a huge supplement market or benefit the overall vaccine industry.


Investment suggestion that the company’s hog production volume will continue to grow steadily, supplementing the new high price of pigs, which is unstoppable, and optimistic that the hog breeding business will significantly improve the company’s performance.

At the same time, the company has a wealth of livestock and poultry vaccine products, 19 new products have been listed on the market, and the performance is expected; and the expansion of the African swine fever vaccine to the overall industry, we are optimistic about the company’s future growth.

We expect the company’s EPS for 2019-2021 to be 0.



60 yuan, corresponding to PE is 19/7/6 times, given a “recommended” rating.


The risk indicates the risk of animal epidemic, R & D risk, quality risk, market competition risk, etc.