Yutong Technology (002831) 2018 Annual Report Comments: Performance continues to pick up, multiple factors driving upward turning point

Yutong Technology (002831) 2018 Annual Report Comments: Performance continues to pick up, multiple factors driving upward turning point
Company announcements: 1) Annual report for 18 years: reports a series of companies achieving revenue of 85.78 ppm, an increase of 23 in ten years.47%, net profit attributable to mother 9.46 ppm, an increase of ten years.47%; of which single Q4 realized income 31.24 ppm, an increase of 28 in ten years.88%, net profit attributable to mother 4.30,000 yuan, an increase of 25 in ten years.63%, in line with expectations.2) Dividend plan: 12 shares for every 10 shares and 6 yuan (including tax).3) The company plans to issue no more than 1.4 billion convertible corporate bonds, which are intended to be used in the construction projects of Yibin Yutong Environmental Protection Paper and Plastic Industry Base and Xuchang, Vietnam and Indonesia Yutong Packaging Industry Base.  The overall average growth rate of revenue and net profit has shown a quarter-to-quarter pick-up trend, mainly benefiting from the consolidation of acquired companies, expansion of high-quality customers and order placement: 18 years: 1) consolidation of acquired companies: Wuhan Aite (purchase date March 1831), contributed revenue 3.21 trillion, net profit of 31.34 million yuan; Shanghai Jiayi (purchased on June 30, 18), contributed revenue of 64.25 million yuan, net profit of 1.27 million; Jiangsu Dejin (purchased on September 30, 18), contributedThe income was 50.56 million yuan and the net profit was 1.48 million yuan.2) Expansion of high-quality customers and order volume: Company customers cover multiple industries such as consumer electronics, smart hardware, tobacco and alcohol, big health, cosmetics, luxury goods, etc. According to the company announcement, the report reported that the company has successfully introduced or expanded Xiaomi as far as possibleMan, Google, Amazon, Dyson, DHL, Moutai, Wuliangye, and Sichuan Tobacco, etc., have transformed the depth of cooperation, and some new customers’ orders have gradually started to drive the company’s revenue.While maintaining the customers in the field of consumer electronics, the company will increase its efforts to expand the field of large packaging (wine bags, cigarette labels, large health cosmetics packaging, etc.), give full play to the comprehensive strength of the company’s packaging integration, and achieve “doubled in three years”Long-term strategic goals.  The magnitude of the decrease in gross profit margin in 18 years is expected to show a steady upward trend in the forecast of gross profit margin in 19 years: the company’s comprehensive gross profit margin in 2018 is 28.50%, a decrease of 3 per year.04pct, we think that it is mainly affected by the relatively high price of raw materials (especially the first three quarters of 18), the stock of raw materials and the slightly lower gross margin of new orders.We believe that through the optimization of the company’s customers and product structure and the relatively low price of raw materials, the company’s gross profit margin is expected to show a steady and steady recovery.  Profit forecast and investment advice: We are optimistic about the company’s strengths in the field of consumer electronics packaging. At the same time, the company is 北京桑拿洗浴保健 actively expanding high-quality customers in the field of large packaging. The synergy of mergers and acquisitions continues to show.34/15.44 trillion (original predictor 11).89/14.91 ppm), an increase in forecasted net profit for 21 years18.750,000 yuan, corresponding to EPS 3.08/3.86/4.69 yuan, the current expected PE is 19X, 15X, 13X, maintaining the “overweight” level.  Risk reminders: New customer development exceeds expectations; the risk of rising raw material prices; the risk of exchange rate changes.