Hexing Packaging (002228): Revenue slightly under pressure, profitability has picked up, light asset expansion strategy is fully upgraded
This report reads: The company released its semi-annual report for 2019, and its performance was slightly lower than expected.
The decline in paper prices has resulted in a sluggish product quality, the company’s revenue has been slightly under pressure, the cost pressure has eased, and the profit level has increased from the previous quarter.
Investment Highlights: Reduce target 杭州桑拿 price to 4.
4 5 yuan, maintaining a prudent overweight rating.
The 2019 semi-annual report was released. The decline in base paper prices affected product segmentation, and the company’s revenue was slightly lower than expected.
Taking into account the tightening macroeconomic environment at home and abroad, the downstream demand for packaging paper and the low price of corrugated cardboard, reduce the company’s 2019?
Impact of EPS to 0 in 2021.
03) / 0.
04) / 0.
05) Yuan, with reference to peers giving the company 18 times PE in 2019 and lowering the target price to 4.
45 yuan, maintaining a prudent overweight rating.
The interim report performance was slightly lower than expected, and the profit level improved slightly.
The decline in the price of base paper in the first half of the 杭州桑拿 year significantly affected product sales prices, and the company’s revenue in 2019H1 was 54.
8.5 billion, down 6.
15%, realizing net profit attributable to mother 1.
3.4 billion, an increase of 10.
Benefiting from the decline in raw material prices, the company’s profitability improved and its overall gross profit margin was 12.
66%, an increase of 0 a year.
98pct, net interest rate 2.
65%, an increase of 0 from 2018.
3pct, of which Q2 single quarter gross margin is 13.
06%, an increase of 0 from the previous month.
The economic environment at home and abroad is tightening, and packaging manufacturing revenues are under pressure.
The continuous downward adjustment of the upstream base paper price directly affects the development pattern of the industry. The downstream retail consumption boom is affected by macroeconomic changes and affects the overall demand of the packaging industry.
The company’s packaging manufacturing business revenue also fell by 10.
31%, gross margin increased by 0 in the short term.
73% to 15.
46%; in terms of products, the company’s carton, cardboard and buffer packaging materials business revenue fell by 7 respectively.
86% / 11.
36% / 20.
57%, gross profit margin increased by 1.
01% / 3.
Driven endogenously and synchronously to achieve the strategic upgrade of asset-light expansion.
After the acquisition of Hezhong Chuangya in 2018, it enriched the company’s customer structure. In January 2019, “United Packaging Network” 2.
Version 0 was officially launched to promote the deep development of the PSCP project.
The existing platform has about 1,600 customers, an increase of about 300 compared with the end of 2018, and achieved sales revenue of nearly 1.5 billion US dollars. The light asset expansion of the packaging industry chain is smooth.
Risk reminders: macroeconomic risks, market competition risks, raw material price fluctuation risks