Yutong Technology (002831): Revenue continues to grow rapidly and profits improve quarterly

Yutong Technology (002831): Revenue continues to grow rapidly and profits improve quarterly
Key points of the report Description Yutong Technology released a quick performance report and achieved revenue / attributable net profit of 85 in 2018.80/9.45 ppm, an increase of 23 in ten years.50% / 1.38%; in the fourth quarter alone, it is expected to realize revenue / attributable net profit of 31.26/4.02 trillion, changing 28 every year.97% / 25.37%. Event commentary The main business is stable and the new business is growing well.The company is under the partial background of the conventional consumer electronics boom (according to data from the Ministry of Industry and Information Technology, in 2018 China’s mobile phone bulk placement position4.1%), the income side remains at 23.The steady growth of 5%, we judge, or mainly because: 1) the share of old customers maintains a stable proportion; 2) the expansion of new customers is good: such as Amazon, Harman, Google and other customers gradually increase; 3) business and diversification:Cigarette packs / wine labels / cosmetic packaging / big health packaging have multiple blossoms; 4) In 2018, Wuhan Aite Paper and Plastic Co., Ltd., Shanghai Jiayi also contributed part of the revenue increase.Among them, in the fourth quarter alone, the company’s revenue accelerated, an increase of 28.97% to 31.2.6 billion. Factors affecting profitability such as exchange rates and costs have improved, and the company’s attributable net interest rate has improved quarter by quarter.The company’s attributable net profit increased by 1 every year in 2018.38%, slower than revenue growth, mainly due to product structure adjustments. At the same time, factors such as raw materials, exchange rates and other factors also have an impact on profit margins, along with changes in net interest rates.4pct.However, since the second quarter, the net interest rate has shown a quarter-by-quarter improvement trend. In the fourth quarter alone, the net interest rate increased by 0 from the previous quarter.12pct, to 12.87%, which mainly benefited from the improvement of exchange rate factors, the decline in paper prices, and the gradual elimination of unfavorable factors on profits in the early stage; along with the company’s refined management and automation level, management and operating efficiency continued to improve, helping the company’s profit to continue to improve. The paper packaging industry is large in scale, and international experience seems to breed an industry giant.The company is a leading high-end paper commercial packaging company, crowded with high-quality customer resources such as Huawei, Lenovo, Foxconn, etc., and leverages the comprehensive advantages of production, technology and models or achieves customers. The category and production capacity are rapidly expanding, and the revenue end materials continue to exceed the industry growth rateFaster growth and gradually enjoy the leading premium.The reduction of repressive factors such as profit-side conversion costs, expenses, and exchange rates, along with the rationalization of the benefit mechanism, gradually releases flexibility.We predict that the company’s EPS for 2018-2020 will be 2.36/2.95/3.62 yuan, corresponding to PE is 21X / 17X / 14X.The packaging industry has a large market, low concentration, and a prosperous economy. As an outstanding leader in the industry, the company uses technology reserves, accumulates quality customers, refines control, and 四川耍耍网 expects to continue to increase market share; due to various adverse factors after listingSuppressing the bottom of the performance assessment, we judge that the inflection point of fundamentals is approaching, and we continue to perform a “Buy” rating. Risk Warning: 1. Industry risks: The smartphone market sales are rapidly deteriorating; raw material prices and the exchange rate of the RMB have intensified; Corporate risk: The company’s new customer expansion is less than expected.

Author Image
admin