Qilian Mountain (600720) 2019 Interim Report Comments: Sales growth has increased sharply and continue to focus on regional project implementation

Qilian Mountain (600720) 2019 Interim Report Comments: Sales growth has increased sharply and continue to focus on regional project implementation
Revenue growth 23.86%, net profit attributable to mothers increased by 128.81%, EPS is 0.65 yuan / share 2019H1 company realized operating income29.10,000 yuan, an increase of 23 in ten years.86%, net profit attributable to mothers5.2.0 billion, an annual increase of 128.81%, net of non-attributed net profit4.170,000 yuan, an increase of 94 in ten years.05%, of which in the reporting period held Lanshi heavy equipment stock fair value change income 7028.390,000 yuan and disposal of outdated production lines will increase asset disposal gains and losses by 2090.70,000 yuan, EPS is 0.6,469 yuan / share, which is in line with the performance forecast; Q2 achieved operating income of 23 in a single quarter.14 ppm, an increase of 20 in ten years.89%, net profit attributable to mothers4.890,北京夜网000 yuan, an increase of 36 in ten years.64%. The beneficiary regional projects started, and the increase in sales volume increased even more. Benefited from the start of construction of regional infrastructure supplementary short-slab projects and the increase in regional cement demand, the company sold a total of 964 cement (including clinker) in 2019H1.9 Initially, it grows 26 each year.1% to complete the annual plan of 50.4%, and surpassed the regional average (January-January cement production increased by 16).3%, the cement output in Qinghai region fell 4 quarterly.3%), to further consolidate the company’s market share.We estimate that the price of cement ton in 2019H1 company is about 277 yuan / ton, the cost of ton is about 178 yuan / ton, the gross profit of ton is about 99 yuan / ton, and the cost of ton is about 48 yuan / ton.Highest equivalent), down 15.6 yuan / ton, an increase of 6.6 yuan / ton, down 11.RMB 9 / ton; among them, the cost of ton and the increase and decrease of the cost of ton mainly benefit from the strengthening of cost and cost control and the improvement of production and operation efficiency, of which the management cost only increased by 2.97%, financial expenses fall 49% every year.84% (repayment of loans in advance reduces interest-bearing debt and reduces index expenditures each year). Regional cement leader, capacity expansion further enhances regional control. As the largest cement production company in Gansu, Qinghai and Tibet, the company occupies key high-end engineering markets such as roads, railways, and airports, with a market share of 42% in Gansu and a market share of Qinghai.twenty four%.In March 2019, the 4500T / D production line in the Qilian Mountains in Tianshui was rebuilt and officially put into operation, further enhancing the company’s regional control. Continue to pay attention to the implementation of regional projects, maintain the “Buy” rating and continue the transition of infrastructure supplementary short-term policies for at least the second half of the year. Regional infrastructure investment has steadily rebounded. If subsequent policies continue to advance and regional demand has increased, continue to focus on regional projectsLanding situation.The EPS is expected to be 1 in 19-21.21/1.37/1.51 yuan / share, corresponding to PE 7.0/6.1/5.6x, maintain “Buy” rating. Risk warning: downstream demand is less than expected; regional supply exceeds expectations.