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Evergreen (002391): 40% increase in annual report net income

Evergreen (002391): 40% increase in annual report net income
Net profit in 2018 increased by 40%, which is in line with the expected 2018 annual report of Evergreen Shares announced on March 7, and the company actually achieved operating income of 30.10,000 yuan, an increase of 33 in ten years.7%, net profit 3.190,000 yuan, an increase of 40 in ten years.2%, in line with market expectations.Press 3.According to the latest equity calculation of 5.9 billion shares, the corresponding EPS is 0.89 yuan.Q4 achieved operating income of 7.1.3 billion, down slightly from 0 previously.3%, net profit is 0.66 ppm, a ten-year increase2.5%.The company plans to transfer 5 shares for every 10 shares and pay a cash dividend of 3 yuan (including tax).We expect the company’s EPS to be 1 in 武汉夜生活网 2019-2021.21/1.39/1.54 yuan, maintain “overweight” rating. The increase in pesticide prices led to the company’s performance growth report. Progressive environmental protection in the country has led to tighter supply of pesticide products, and the company’s main varieties are at a relatively high level.According to Baichuan Information, the average price of imidacloprid (95% of the original drug) / plasma worm / flusulfazone / methodim / tricyclazole in East China increased by 6% / 13% / 13% / 35% / 36% To 18.8/19.1/13.4/17.5/8.2 million / ton, in the case of the company’s 2018 sales of original drugs / preparations are basically flat every six months, drive the pesticide / herbicide / fungicide business revenue to increase by 53% / 17% / 24% to 151/ 12.3/1.800 million.In 2018, the company’s comprehensive gross profit margin declined slightly1.4 points to 25.3%. Due to the increase in revenue and the increase in exchange income, the sales / management / financial expense ratio decreased by 0 consecutively.6/0.8/1.1 point to 3.3% / 4.0% / 0.4%. The prices of major products such as imidacloprid are basically stable during the off-season. At present, the price trend of mainstream products in the pesticide market remains stable as a whole.According to Baichuan Information, as of early March, the price of 95% imidacloprid / ulcerate in East China was 17 respectively.0/18.0 million yuan / ton, the earlier prices fell slightly.0/0.50,000 yuan / ton; 95% dicamba / tricyclazole latest offers are 9 respectively.6/8.80,000 yuan / ton, are flat with the initial price.With the start of the downstream rigid stocking after the Spring Festival, the trading volume of the pesticide market has been enlarged recently, and the channel inventory accumulated in the early stage is gradually being digested. The capital increase subsidiary’s implementation of the convertible bond project is expected to contribute to the long-term growth of the company’s performance. At the same time, the company announced its intention to use convertible bonds to raise funds to increase capital in Nantong Changqing.93 ppm for 6 projects including “6,000 tons of dicamba per year” and “3500 tons of glufosinate per year”.The total of the above projects involves 1.91 Pesticides Pesticides and related raw materials. The company expects that the project construction period will be 1 year per year and the production period will be 2 years. It is estimated that it will contribute a total of 15 revenue after it has reached full production.4.6 billion, net profit 2.10,000 yuan.The subsequent implementation of this fundraising project is conducive to enriching product varieties, increasing the market share of existing products, and further enhancing the company’s industry competitiveness. Maintaining the “overweight” rating of dicamba, imidacloprid and other production capacities are leading internally. The dicamba benefits from the growth in demand driven by the promotion of genetically modified seeds. At the same time, with the new capacity being launched, the scale of the convertible bond project will continue to expand.Performance growth can be expected.We expect the company’s net profit for 2019-2021 to be 4 respectively.3/5.0/5.50,000 yuan, the corresponding EPS is 1.21/1.39/1.54 yuan, based on the comparable company’s estimated level (average 13 times PE in 2019), giving the company 12-14 times PE in 2019, corresponding to a target price of 14.52-16.94 yuan (original value of 12.10-14.52 yuan) maintain “overweight” rating. Risk reminder: Downstream demand does not meet expected risks, and core technology is at risk of confidentiality.