Conch Cement (600585): T1 profit hits record high, Q1 growth is confirmed

Conch Cement (600585): T1 profit hits record high, Q1 growth is confirmed

Matters: The company recently released its 2018 annual report, reporting and realizing operating income of 1284.

30,000 yuan, an increase of 70 in ten years.

50%, realized net profit attributable to mother 298.

14 ppm, an increase of 88 in ten years.

05%, basic profit income 5.

63 yuan / share, an increase of 88 in ten years.


In addition, the company intends to distribute 1.

69 yuan (including tax).

Comment: The volume and price of self-produced cement and clinker both rose, and the gross profit per ton reached 157 yuan, a record high. In 2018, the company’s cement clinker product sales were 2.

9.8 billion tons, an annual increase of 2.

69%; revenue from product sales was 986.

310,000 yuan, an increase of 36 in ten years.

62%; cost of goods sold 518.

37 ppm, an increase of 12 in ten years.

68%; comprehensive gross profit margin from products is 47.

44%, an increase of 11 over the same period last year.

17 units.

In 2018, the company’s cement and clinker sub-products had a ton income of 331 yuan, a ton cost of 174 yuan, and a ton gross profit of 157 yuan. Each time it increased by 86 yuan, 13 yuan and 73 yuan. The cement price continued to increase for 18 years, and its profitability improved significantly.

Significant volume of trading business, “T” strategy further strengthened the company’s trading business in the reporting period to achieve income 252.

10,000 yuan, an increase of 1699 in ten years.

14%, operating cost 251.

7 trillion, an annual increase of 1706.

42%, gross margin is 0.

17, a decline of 0 every year.

4 units.

Sales of non-self-produced cement and clinker business reached zero.

700 million tons, a 12-fold increase in ten years.

During the reporting period, the company further perfected its “T” -type development 杭州桑拿网 strategy, vigorously built or leased waterways and onshore channels in the middle and lower reaches of the Yangtze River and the coast, and gradually promoted the integrated construction of sales markets in central cities, created a trading platform, and seized terminal salesMarket construction.

The gross profit margin of aggregate products increased significantly during the reporting period. The company’s aggregate business realized revenue8.

10,000 yuan, an increase of 16 in ten years.

0%, gross margin is as high as 69.

1%, up 5 per year.

One single, mainly due to the sharp increase in aggregate prices.

Q4 revenue continued to rise. The increase in gross profit margin may be due to the increase in the proportion of trading business. From the quarter of Q4, the company’s revenue was 506.

110,000 yuan, an increase of 100 in ten years.

26%; net profit attributable to mother is 90.

9.8 billion yuan, an annual increase of 50.48%, gross profit margin 29.

59%, a ten-year average of 26.

63 single; Q4 revenue growth is faster than profit. We judge that the main reason is the rapid growth of the trading business, but the redistribution of the gross profit margin of the trading business has dragged down the overall gross profit margin. In fact, from the perspective of the product alone, the average profitability of the chain is the largest.rise.

The period expense ratio decreased significantly during the reporting period.

72%, a decrease of 4 over the same period last year.

Twelve single ones, with sales, management, R & D and financial expense ratios of 3 respectively.

01%, 3.

03%, 0.

06% and -0.

38%, each year decreased by 1.

84, 1.

61, 0, and 0.

67 expenses. The decrease in expense ratio was due to the increase in revenue from main operations. There was no change in the R & D expense ratio, which was mainly due to the increase in R & D expenses for new products such as intelligent factory construction and refractory materials.
At home and abroad, the company continues to expand its production capacity. The company continues to do well in domestic project construction and mergers and acquisitions. Yueqing Conch, Jiande Conch and other 4 cement mills have been completed and put into operation. Jiande Conch, Jianghua Conch, Yangchun Conch, Fenyi Conch,The aggregate project of Xingye Conch and other companies was completed and put into operation.

Acquired Guangying Cement to increase 270 tons of clinker capacity, 400 tons of cement capacity and 130 tons of aggregate capacity.

At the same time, the company actively promoted the construction of overseas projects. Cambodia’s Battambang Conch, Indonesia’s North Su Conch, and other 2 clinker production lines and 4 cement mills have been completed and put into operation. The construction of the old Romanian Luang Prabang Conch project has entered the equipment installation stage. Mandalay, MyanmarThe conch project has begun construction, and the preliminary work of the projects in Vientiane, Laos, and Kalshi Conch in Uzbekistan has been advanced in an orderly manner.

At the end of the monthly reporting period, the company’s clinker production capacity was 2.

5.2 billion tons, cement production capacity 3.

5.3 billion tons, aggregate capacity of 3,870 tons, and 600,000 cubic meters of commercial concrete.

The company’s scale continues to expand and develop overseas, and its production capacity will continue to increase.

Maintaining a “Buy” rating, we estimate the company’s revenues for 2019-2021 will be 1440, 1586 and 172.2 billion US dollars, respectively, an increase of 12 each year.

1%, 10.

2% and 8.

5%, net profit was 305.


9 and 317.

400 million, an increase of 2 each year.

5%, 2.

1% and 1.

8%, EPS is 5.

77, 5.

89 and 5.

99 yuan, corresponding to 19/6 years PE is 7/6 / 6x.

The price of cement in Q1’s major regions is still higher than the same period of last year, and performance growth is determined. From this perspective, the probability of demand this year is better than last year. The price of cement has remained stable, maintaining a “buy” rating.

Risks indicate the risk of real estate downturn; the risk of strict environmental protection regulations to increase production and operating costs; the risk of rising coal and electricity prices.