Seiko Steel Structure (600496)： Multiple positives form resonance. First-quarter results exceed expectations
Seiko Steel Structure (600496): Multiple positives form resonance. First-quarter results exceed expectations
Event Seiko Steel Structure announced the first quarter of 2019 results pre-announcement announcement: The company expects to achieve zero net profit attributable to its mother in January-March 2019.96?1.09 million yuan, an annual growth of 279%?328%.At the same time, the report achieved the New Decade Order for the first time.28 ppm, an increase of 61 in ten years.8%. A brief comment on the multiple positives formed resonance, Q1 performance growth exceeded 300%, exceeded the market’s expected 19Q1 performance growth by 300%, exceeded market expectations, although the same period last year was affected by the increase in steel prices caused by the increase in the base, but more importantIt is because the industry side has gradually recovered since 18Q3. Under the resonance of multiple favorable factors such as “exceeded assembly policy + weaker steel price impact + technology license significantly increased profits and cash flow”, orders, revenue, Gross profit margin and performance have improved significantly from the bottom. The first quarter performance growth was mainly due to three reasons: First, the company signed a new 122 in 18 years.The implementation of the 7 million US dollar order progressed smoothly; the second was that approximately 5,000 million of the 18Q4 technology licensing business was carried forward to 19Q1 confirmation; the third was that the impact of steel prices on the gross profit margin gradually weakened, and the company’s profit margin continued to rise.19Q1 was a good start, and the company’s performance repair logic was reaffirmed, providing strong protection for long-term performance growth. New breakthrough orders continued to accelerate, and EPC achieved a large number of new breakthrough orders of 50 in 19Q1.280,000 yuan, an increase of 61.8% (50 of which are steel structure business.11 trillion, the same increase of 71.7%).Order growth reached the best level in history, mainly because the company won the bid23.5 trillion Shaoxing International Convention and Exhibition Center steel structure EPC general contracting project, as well as traditional steel structure engineering and prefabricated steel structure orders with warming up.Plenty of orders are beneficial to the company’s long-term revenue growth, and further enhance the company’s technical capabilities and team building in EPC general contracting. The beginning of 2019 is different from the past: the advancement of steel structure prefabricated houses is more than expected, and outstanding companies are expected to stand out. The Ministry of Housing and Construction will issue a “Notice of Work Points in 2019” on March 11th. It will clearly implement the pilot construction of steel structure prefabricated houses.In the pilot areas of affordable housing, prefabricated housing construction and rural dilapidated house reconstruction, and ex-situ poverty alleviation and relocation, a certain percentage of projects will adopt the steel structure prefabricated construction method, and improve related supporting policies to promote the establishment of mature steel structure assemblyHousing construction system. The company is a leading steel structure engineering leader. The self-developed “green building” GBS prefabricated building integration system can achieve a domestic assembly rate of up to 95%. Since 17 years, it has started with the “three self-operated bases” and “technical licenses to join”.This method has expanded rapidly, and the number of orders for assembly in the new decade of 18 years has increased by 169%, of which technology license orders have increased significantly by 2.4 times, contributing an important increase for the company to expand new business, repair profit margins and increase market share. In 2019, the inspection year of prefabricated buildings is expected. The steel structure is expected to reach 54% of prefabricated building composite materials in 2012-2018. We will replace the newly built prefabricated area in China by 2019-2020 and increase it by 2.5.2 billion square meters (12%) and 3.1.5 billion square meters (15% of the total).In 2019, the prefabricated construction industry enters the year of policy acceptance and inspection. The low-assessment building policy is getting smaller and 四川耍耍网 smaller. The company’s “green building” GBS prefabricated integrated system and PSC residential prefabricated technology will further highlight the advantages. In the future,Through higher assembly rates and gradually narrowing price spreads, it will quickly penetrate the traditional construction and breakthrough concrete markets. Industry leaders accelerate growth and maintain “Buy” rating. Prefabricated construction policies are more than expected (the Ministry of Housing and Construction first mentions “advance steel structure housing”) + mature technology (19 national industrial bases have been completed), will be prefabricated in 2019A new starting point for architecture.The company’s main business has recovered significantly, and orders and profits have been significantly improved. The industry-leading assembled 夜来香体验网 technology system has seized market share through self-employment and authorization, contributing to high order growth, repairing comprehensive profit margins, and driving heavy performance growth.Back to the high position, the turning point is now!We expect the company to return to its parent net profit for 18-20 years.1, 3.8 and 5.80,000 yuan, EPS is 0.12, 0.21, 0.32 yuan with a target price of 4.20 yuan, corresponding to 19 times PE in 19 years, maintain “Buy” rating. Risk Warning: The development of prefabricated construction business is less than expected; the technology franchise business is less than expected; the construction of component production bases is less than expected; the risk of steel prices rising too quickly.