Jidong Cement (000401) Semi-annual Report 2019 Review: Strong Regional Demand, Xiong’an Construction Brings New Flexibility

Jidong Cement (000401) Semi-annual Report 2019 Review: Strong Regional Demand, Xiong’an Construction Brings New Flexibility

Report Summary: Event: The company achieved operating income of 160 in the first half of 2019.

780,000 yuan, an increase of 25 in ten years.

18%, net profit attributable to mother is 14.

80 trillion, an increase of 60 in ten years.

82% with a budget benefit of 1.

02 yuan.

Beijing-Tianjin-Hebei cement demand is high, and Jidong Cement sales volume and price are rising.

From January to June 2019, the growth rate of Hebei’s fixed asset investment was 5.

6%, maintaining relatively flat potential.

In 2019, Beijing and Tianjin, driven by real estate and subway investment, will see positive growth in fixed asset investment and continue to maintain double-digit growth. Overall, the demand for Beijing-Tianjin-Hebei cement shows a high degree of prosperity. Jidong is the regionThe cement faucet directly benefits from this. According to the caliber of many years, the average price of cement clinker sales in 2019H1 is 317.

04 yuan / ton, an annual increase of 13.

36%, the sales volume of cement clinker is 4528 years, and the annual value added is 12.

83%.

Rising coal prices lead to rising tonnage costs, rising prices, cost control and joint venture investment gains.

The ton cost of 2019H1 cement clinker is 197.

68 yuan / ton, an increase of 18 per year.

At 92 yuan, the increase in ton cost was mainly caused by the rise in coal prices. Driven by the strong demand for cement, the rise in cement prices continued to increase the gross profit per ton.

19 yuan.

In 2019H1, with the continued high growth of operating income, the net cash flow of Jidong Cement’s operating activities increased by 44 each year.

90%, the company started to adjust the debt structure after abundant cash flow, returned about 4 billion high-interest debt, and made up 55% of assets and liabilities.

04%, continued to decline compared with the first quarter, the decline was 2.

46 units.

According to the caliber before and after, the financial expense ratio of the company in 2019H1 dropped by 4.

97 units.

In fact, the company strengthened its expense management and control, the decline in staff remuneration and labor expenses, depreciation and amortization, and other management expenses, coupled with the increase in operating income, reduced the management expense ratio5.

19 units, the company’s overall expenses during the period fell by 9.

79 units.

2019H1 Jidong Cement’s joint venture Heidelberg has excellent performance and contributed 200 million investment income.

The decrease in expenses during the period and the increase in investment income have strengthened the performance, and the company’s performance increase in the first half of the year was greater than revenue growth.

Xiong’an Construction has ushered in an inflection point to accelerate upwards, and North China’s cement demand has great room for elasticity.

In the first half of 2019, the construction planning and budget implementation scale of Xiong’an New District continued to be promulgated. Xiong’an Construction also officially accelerated in May, and a number of major projects were officially started.

Currently Jidong Cement occupies a dominant position in the Xiong’an market, with a city share of 70-80%. The company has provided 100 replacements for Xiong’an in the first 都市夜网 half of the year. It is expected that there will be 400 incremental demand in the second half of the year, replacing the limit required for the 70th anniversary of the founding of the People’s Republic of China.Production growth company’s production in late September caused a certain impact. The increase in shutdown losses will increase management costs. The company’s price increase is expected to face a good demand environment. At the same time, the price of North China cement is still different from that of East China. The company’s cement sales in the second half of the yearThere is a high probability that both volume and price will rise.

Earnings forecast and investment rating: We expect the company’s earnings from 2019 to 2021. 2

33 yuan, 2.

99 yuan and 3.

40元,对应的PE为7倍,5倍和5倍,考虑到公司的区域控制力,区域的需求旺盛和空间大,在雄安建设进入基建期带来的杭州桑拿网大量集中需求,我们维持公司 “Recommended “investment rating.

Risk Warning: The growth rate of real estate and Xiong’an is below expectations.

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