Cibin Group (601636): Demand picks up and profits improve month-on-month

Cibin Group (601636): Demand picks up and profits improve month-on-month

This report reads: The company’s 2019 Interim Report is in line with expectations. We judge whether the completion of the completion of the demand will pick up and the profit in the second half will be better than the first half.

Investment Highlights: Maintain “Overweight” rating.

19H1 company achieved revenue of 40.

700 million yuan, an increase of 7.

9%, net profit attributable to mother 5.

2 trillion, the same minus 20.

9%, in line with market expectations.

We judge that the demand for gradual completion will pick up, and the company’s profit will improve in the second half of the year, raising the EPS to 0 in 2019-21.

46, 0.

51 (+0.

02), 0.

58 (+0.

02) Yuan, corresponding 合肥夜網 to 2019PE7.

7 times, maintaining target price of 6.

01 yuan.

Float prices rose month-on-month, and profits improved significantly.

It is estimated that the number of original float box of 19Q2 company is about 72.

8 yuan, down about 1 a year.

7 yuan, but the chain increased by about 1.

4 yuan; gross profit of the box, net profit of the box reached 16/10.

5 yuan, down about 3/1 a year.

5 yuan, a significant improvement over the previous month, increased by 2 respectively.

8/2 yuan.

After the second quarter, the float price has increased moderately. We estimate that the average molecular weight of the box in July has reached 74.

5 yuan, gross profit of the box, net profit of the box reached 18/12 yuan.

We judge the glass price and profitability in the second half of the year will be significantly better 南京夜網論壇 than the first half and 18H2.

The production and sales rate in Q2 exceeded 100, and demand picked up and is expected to continue.

Q2’s production and sales reached 2.9322.37 million heavy cases, with an increase of 2.21 and 1.66 million heavy cases each year.

In 2018, the company completed the cold modification of 3 production lines in Changxing, Liling and Zhangzhou, and the production of the 1000t / d ultra-white glass line in Luzhou also ended at the end of the year (2-19mm ultra-white glass). As of the end of the second quarter of 2019, the company hasWith 26 float lines, the daily melting amount reaches 17,600t.

The macro and micro data in July have released the signal of completion of the recovery. We believe that the continuous improvement of glass demand will become a large probability.

The profitability of engineering glass continues to climb.

Reported Tier 1 companies Guangdong / Zhejiang / Malay energy-saving glass projects recorded revenue1 respectively.



2 trillion, of which Guangdong and Zhejiang have achieved profit, reaching 466,5.8 million yuan, respectively, Malay energy can still reduce 12.47 million yuan.

We judge that the profitability of the company’s engineering glass will continue to improve through the climb of maximum production capacity.

Risk warning: the recovery of completed demand is less than expected, and the capacity is disorderly released