Real Madrid Technology (603181): Steady growth in performance, raise capacity, high future growth

Real Madrid Technology (603181): Steady growth in performance, raise capacity, high future growth
The event company released the 2018 annual report on the evening of March 28, 2019, and the company achieved revenue of 17 in 2018.19 ppm, a ten-year increase2.15%; net profit attributable to mother 1.97 ppm, an increase of 33 in ten years.34%; net profit after deduction to non-returned mothers1.740,000 yuan, an increase of 25 in ten years.01%; net cash flow from operating activities2.500,000 yuan, an increase of 111 in ten years.84%; estimated average ROE 14.55% twice a year.03 averages. The company intends to distribute cash dividends for every 10 shares3.00 yuan, a total of 60 million yuan in dividends, and it is planned to increase 4 shares for every 10 shares. A brief comment on the steady growth of performance, the increase in sales of small varieties, and the increase in reported performance are mainly due to: ① the adjustment of the company’s product structure and the increase in the proportion of small varieties;Increase in profits; ③ the impact of non-recurring gains and losses such as government subsidies, disposal of non-current assets. Product structure adjustment, gross profit margin increased: The consolidated gross profit margin of the consolidated company was reported19.5%, increase by 0 every year.The six single ones are mainly due to the increase in the proportion of high-margin products of small varieties. A series of large varieties of companies are reported. The proportion of small varieties of products accounted for 41% and 59% of revenue, compared with 52% and 47% in the same period last year.Among them, the sales volume of large varieties was 70,438 tons, an increase of 19% every ten years, and the sales volume of small varieties was 65,476 tons, an annual increase of 15%.The increase in sales of small variety products is particularly evident in the single season of Q4, which sold 23,453 tons in the single season, and in the four quarters of the all-in-one 2017Q4-2018Q3, the single-season 都市夜网 sales were in the range of 1,300-15,000 tons. Report the price range of large-scale products of major companies.78% to 10065 yuan / ton, the price of small varieties increased by 9 year-on-year.87% to 15418 yuan / ton; the purchase price of raw materials alkylate and propylene oxide gradually increased.94%, 11.53%.The gross profit margins of small and large products were each slightly smaller than 0.50, 0.58 up to 13.53%, 23.70%. Period expense changes: The reported company sales, management, finance, and R & D expenses were 3,361,3194,445, and 62.09 million yuan, respectively, and the fluctuations were -12.39%, +2.17%, -84.49%, +3.39%, the total cost during the period is expected to be 26.53 million yuan. Increasing profits from non-recurring gains and losses: The total non-recurring gains and losses of the reporting company was 22.77 million, of which 9.24 million were non-current asset disposal gains and losses, and 11.92 million yuan was government subsidy. Significant increase in cash flow: The current net ratio of the consolidated company is reported, and the current ratio is 104% and 86%, respectively. The net cash flow from operations has increased, mainly due to the decrease in invoice receivables and the increase in accounts payable.Receivable balance 2.0.2 million yuan, a year-on-year decrease of 23%; the balance of accounts payable1.460,000 yuan, an annual increase of 73%. Large varieties: stable infrastructure construction policy background, stable growth on the demand side The company’s large varieties of products are polyether macromonomers, which are used to manufacture concrete polycarboxylic acid water-reducing agents downstream. The demand is highly related to the infrastructure.Since the fourth quarter of 2018, the stable infrastructure construction and supplementary shortcoming policy has been frequent. The Ministry of Finance issued six documents on November 9, 2018, and issued 16,632 trillion financial funds to 26 provinces in advance.It is expected that the growth rate of infrastructure investment in 2019 will reach 10%, which will lead to an increase in demand for water reducing agents.The company’s existing large-scale production capacity11 is preliminary, and the supplementary investment project supplement 3 is expected to be gradually put into production by 2019. Small variety: accurate business card position, raising capacity growth. Future high-growth business card position is accurate, competing with international giants: The company’s research and development capabilities are only the same as those of international giants such as BASF and Dow, while customer service capabilities, research and development costs, product pricesMean value advantage, obtained its own market space in the competition with international giants.Mainly for specific customers such as Momentive, German and American, Arkema: The main customer of the company’s small variety segment is Momentive, which is about 1 for Momentive in 2016.800 million, accounting for 12% of the total revenue, accounting for 26% of the small variety segment revenue, the remaining small variety segment accounted for a higher proportion of customers also include German and American, Arkema and so on.Fund-raising projects to maximize production capacity: The company’s fund-raising projects include small-capacity sector capacity5.5 anions, of which polyetheramine 0.8 anions, special polyethers and synthetic esters.7 Preliminary, preliminary production is expected from 2019-2020.The commissioning of investment projects will significantly improve the company’s capacity growth and start a new phase of high growth. It is estimated that the company’s net profit attributable to the parent in 2019 and 2020 will be 2.67, 3.390,000 yuan, corresponding to PE 17, 13X, maintain BUY rating.