Jinjia Co. (002191) Quarterly Report Review 2019： Revenue Growth Exceeds Expectation Large Packaging + New Tobacco Builds Strong Growth Pole
Jinjia Co. (002191) Quarterly Report Review 2019: Revenue Growth Exceeds Expectation Large Packaging + New Tobacco Builds Strong Growth Pole
Company announcements: 1) Quarterly report 19: Operating income 10.
10 ppm, an increase of 24 in ten years.
08%, net profit attributable to mother 2.
590,000 yuan, an increase of 21 in ten years.
81%, increased by 21 after deduction.
30%; revenue growth exceeded expectations.
2) Interim report performance forecast: It is estimated that the net profit attributable to mothers will be realized from January to June of 19 4.
930,000 yuan, an increase of 20% -30% in ten years.
The steady growth of the main business of the 南京夜网 cigarette label and the high growth of the color box business drove the company’s excellent performance in 19Q1: the company’s revenue and net profit increased by 24 in 19Q1.
81%, with outstanding performance. We believe that it mainly benefits from three aspects: 1) The main business of cigarette labeling: Against the background of the rebound in the industry’s production and sales growth, the company makes full use of strong design and R & D capabilities while seizing opportunities for product structure upgrades.The growth of the main business of cigarette labels has maintained a good trend.
2) High growth of color box business: The company’s own advantages in the field of color boxes focus on the development of fine cigarette boxes, 3C packaging, and wine boxes, and transform the continuous development of new 失败:重查 customers in various fields. We believe that the company’s color box business will grow rapidly in the future.Sustainability expectations.
3) Investment income (Guizhou Shenren, Shanghai Rencai, etc.) contributes incrementally.
The gross profit margin decreased due to the improvement of the product structure; the cost control ability improved: the company’s comprehensive gross profit margin in 19Q1 was 43.
81%, a decrease of 3 per year.
33pct, mainly due to the increase in the percentage of revenue from color box products with a reduced gross profit margin and the change in the structure of cigarette label products; the current gross profit margin of color boxes is still climbing, and the future gross profit level will continue to increase.
In terms of expenses, the company’s expense ratio during the 19Q1 period was 11.
86%, falling by 2 every year.
37pct, in which the sales and management expense rates decreased by 0.
64pct, we judge that the increase in the decrease in management expense rate is mainly due to the improvement of the company’s ability to control expenses.
Launched a three-year strategic plan to consolidate efforts to promote the development of large packaging and new tobacco business: The company announced the launch of the “Three-year Development Strategic Planning Outline (2019-2021)”, which clearly proposed cohesive efforts and gradually promoted the development of the large packaging industry.(Standards, wine bags, premium packaging, etc.) and actively fostering a new tobacco industry; and put forward to strive to compound and maintain more than two annual net profits in 19-21.
Profit forecast and investment recommendations: Taking into account the steady growth of the company’s main business of cigarette labels, the high growth of the color box business and the incremental contribution of investment income, we maintain the company’s 19-21 year net profit8.
26 trillion, corresponding to 0 EPS.
91 yuan, the current sustainable corresponding PE is 24X / 19X / 16X, maintaining the “buy” level.
Risk warnings: Downside risks to cigarette production and sales; customer expansion beyond expected risks; new tobacco-related policy risks.