Seiko Steel Structure (600496) 2018 Annual Report and 2019 First Quarterly Report Review： High Performance Increase Control Steel Price Costs Achieving Authorized Business Continuous Development
Seiko Steel Structure (600496) 2018 Annual Report and 2019 First Quarterly Report Review: High Performance Increase Control Steel Price Costs Achieving Authorized Business Continuous Development
Core point of view The performance in 2018 increased rapidly, the company’s cost of controlling steel prices increased, the gross profit rate and net profit rate rose on schedule, and the authorized business continued to expand, increasing the company’s performance.Considering the company’s new long-term single continuous growth, the continuous expansion of its franchise business, and the risk control of steel price fluctuations, and the growth of performance, we maintain the EPS forecast for 2019-20 to 0.22/0.29 yuan, plus EPS forecast for 2021 is 0.36 yuan, maintain “Buy” rating. The net profit attributable to the mother for the first quarter of 2018/19 is +193 per year.0% / + 319.6%, high performance.The company’s preliminary 2018 revenue was 86.3 ‰, +32 a year.1%厦门夜网; net profit attributable to mother 1.80,000 yuan, +193 a year.0%; corresponding to EPS0.11 yuan, + 175% per year; the company ‘s high performance is mainly due to the rapid growth of the assembly business with higher profit margins, and a new breakthrough in assembly business in 18 years.500 million, +169 a year.4%.In terms of business, light steel structures, heavy steel structures, and large-span steel structures earn 49.9/20.4/12.0 ppm, +34 for ten years.7% / 30.8% / 31.8%.Company revenue for the first quarter of 201922.200 million, +4 a year.1%, net profit attributable to mother 1.1 billion, previously +319.6%. Controlling steel price cost fluctuations has improved, gross margins, net margins have rebounded significantly, expense ratios have fallen, and operating cash flow has turned positive in the first quarter.Gross profit margin in 2018 13.7%, +2 per year.2pcts; the cost is properly controlled, the comprehensive cost rate is 10.3%, about -2.3 items, including sales / management / R & D / financial expense ratio 1.3% / 3.7% / 3.4% / 1.9% every year -0.8 points / -0.9pct / -0.2pct / -0.4pct.The company’s net interest rate doubled 1.1pc to 2.1%, profitability improved significantly.Net operating cash margin 2.300 million US dollars, operating conditions improved compared to the same period last year, a net replacement.The RMB 70,000 has improved, but due to the decrease in the collection of receivables and the increase in the payment of receivables, the operating cash flow is still negative; the investment cash has been replaced.30,000 yuan (net decrease of 1 in the same period last year.US $ 100 million, mainly due to the disposal of the cash copy of the Shanghai Management Headquarters project under construction in the same period last year; net cash flow from financing.800 million (net inflow of the same period last year 4.300 million).The company’s gross profit margin increased by ten years in the first quarter of 20193.4 pieces to 16.1%, the expense ratio is 11.1%, unchanged from the same period last year.Thanks to cost control, the company’s net operating cash flow in the first quarter.800 million. In the new decade, the single-year high is high, and in the industrial building and public building sectors, the single-year new singles continue to grow rapidly.The company’s new chronic single 122 in 2018.700 million, a record high, of which 105 orders for steel structure.4 ‰, +18 a year.8%. Looking at the business segments, the industrial construction sector has newly signed 58.800 million, +26 a year.7%, mainly benefiting from the increased demand for new factories to set up factories; the new signing of public construction 24.2 ‰, +41 a year.9%, mainly due to undertaking large-scale public construction projects such as the cultural living room in Hohhot.In the first quarter of 2019, the company has a single 50 in the new decade.300 million, previously +61.8%; 50 of which are steel structure business.1 ‰, +71 a year.7%.The increase was mainly due to the newly signed Shaoxing International Convention and Exhibition Center Phase I project EPC project, with a total amount of 23.500 million US dollars, the company currently has ample orders in hand, and future EPC projects are expected to grow steadily. The prefabricated building franchise authorization model continued to develop, increasing the company’s performance.In 2018, the company undertook 3 orders with a technology joining model, with a total amount of 1.700 million, previously + 240%.The company announced on April 23, 2019 that it will promote the prefabricated building in Xinxiang City, Henan Province through the technology joining model, involving an amount of 50 million yuan. We believe that the technology joining income in 2019 is expected to continue to increase and increase the company’s performance. Risk factors: The growth rate of the real estate industry is less than expected, the cost of manpower and raw materials has increased significantly, and the advancement of technology has fallen short of expectations.