CCB Group (002398): Additives business boosts company performance

CCB Group (002398): Additives business boosts company performance

Report Summary: Event: The company released its semi-annual report for 2019 and achieved 武汉夜生活网 total operating revenue of 14.

81 ‰, an increase of 28 per year.

31%, realizing net profit attributable to mother 2.

0.6 million yuan, an increase of 76 in ten years.

twenty one%.

Initial income is 0.

30 yuan.

The increase in the concentration of the admixture industry and the decline in raw material costs have contributed to the high performance.

The concrete admixture business accounted for about 70% of the company’s overall revenue. Benefiting from the continuous increase in the concentration of downstream manufacturers and the withdrawal of small factories due to stricter environmental protection law enforcement and safe production requirements, the concentration of the admixture industry continuedAs a leader in the industry, the company benefited from this, and its revenue grew rapidly. The 2019H1 厦门夜网 admixture business revenue continued to maintain 26.

01% higher growth rate.

At least, from the end of 2018 to the beginning of 2019, the international crude oil price fell sharply. As a result, the replacement price of petroleum industry products, which accounted for 80% of the cost of admixtures, fell by 25%.Interest rates rose by more than 5.

16 averages, net margin increased temporarily by 3.

93 averages, the annual growth rate of net profit attributable to mothers increased by 76.

twenty one%.

Admixture leaders are highly competitive in the nationwide layout and actively expand the demand for urban rail directions.

The company’s admixture business has a national layout. The industrial group is located in 14 provinces and Malaysia. The product categories mostly include polycarboxylic acid synthesis, downstream synthesis, trace family synthesis, amino synthesis and other categories. There are more than 50 types.Fujian, Chongqing, Guizhou and Shaanxi are the regional leaders, and multi-category and regional first increase the market competitiveness gradually.

At the same time, the company is actively deploying the Beijing-Tianjin-Hebei-Wangwang area, exploring product markets for urban rail and high-speed rail projects, grasping the demand release side, and ensuring the company’s business replenishment.

The construction and building materials testing business has grown steadily, and the “cross-region, cross-domain” strategy has been steadily advanced.

The company’s technical services are mainly construction and testing of building materials, and the revenue from inspection services accounts for about 90% of the revenue from comprehensive technical services.

2019H1 company’s comprehensive technical service revenue is 2.
1%, an annual increase of 8.

7%, a more robust growth. Due to the opening of the testing market in Xiamen, the company’s main market for testing business, competition has intensified as the number of companies entering the industry has increased, leading to a reduction in the price of testing business fees and a decline in gross profit margin2.

2 up to 41%.

The merged company continues to work hard to advance its “cross-region, cross-domain” testing business development strategy. It plans to acquire a 51% stake in Shanghai Hezhong through capital increase. This will help the company ‘s testing business expand to the Shanghai region and breakthrough through direct mergers and acquisitions.Detect regional barriers caused by differences in regional regulatory policies.

The company firmly implements the “cross-region, cross-field” development strategy. The inspection business has entered the markets of Fujian, Chongqing, Shanghai, Hainan, and Yunnan. After the completion of the acquisition of Hebei Pu’an, the company intends to promote the expansion of the inspection business to environmental inspection., Occupational disease hazards detection, lightning detection and public health testing.

Profit forecast and investment rating: The company’s EPS from 2019 to 2021 is expected to be 0.

59 yuan, 0.

72 yuan and 0.

86 yuan, corresponding to PE is 9 times, 8 times and 6 times.

Taking into account the company’s new qualifications for testing business and the continuous expansion of new business areas, the market share of the admixture business has expanded and its competitiveness is strong, maintaining the company’s “recommended” investment rating.

Risk reminder: The price of propylene oxide fluctuates sharply, and the development of epitaxial is slower than expected.