Conch Cement (600585): Leader’s True Colors Lead the Industry to Green Upgrade
Key Investment Events: The company disclosed its 2018 annual report, which reported a real operating income of 1284.
3.0 billion, an annual increase of 70.
50%; net profit attributable to mother is 298.
14 ppm, an increase of 88 in ten years.
05%; net profit after deduction is 298.
190,000 yuan, an increase of 111 in ten years.
81%, basic profit return 5.
The company intends to distribute preliminary cash dividends to all shareholders1.
69 yuan (including tax).
The profit distribution plan announced by the company proposes the payment of a final dividend of level one.
69 yuan (including tax), accumulating a total of 8.895582 trillion yuan, the proposed cash dividend amount accounts for 30% of the net profit attributable to shareholders of listed companies in 2018.
Opinion: The volume of trade has increased significantly, and comprehensive advantages have continued to increase.
In 2018, the company achieved total sales of cement and clinker3.
About 6.8 billion tons, an increase of 24 in ten years.
77%, of which self-product sales 2.
9.8 billion tons, an annual increase of 2.
In Q4, the company’s cement and clinker sales volume1.
About 3 billion tons, the self-product sales volume is more than 8,300 levels, at least slightly offset (17Q4 sales volume is more than 8,400 levels).
Initially, the company’s average ton price increased by 81 yuan per year, and gross profit per ton increased by 67.
From 7 yuan to 155 yuan, the net profit per ton (net of investment income) increased by 27 yuan to 83 yuan, the best level in history.
At the same time, ton sales expenses, ton management expenses (including research and development expenses), and ton financial expenses are reduced every other time, and the expense ratio continues to decrease during the period.
Based on far-reaching, increase capital expenditure and lead the industry’s green development.
In 2018, the company increased its investment in environmental protection, implemented technological improvements in energy conservation and emission reduction, reduced emissions, and further consolidated and enhanced the core competitiveness of the company. During the year, the Group established a total of 827 environmental protection technological transformation projects with a total investment of 20.
At present, sulfur dioxide, nitrogen oxides and dust pollution all comply with national emission standards.
In terms of carbon dioxide concentration, the Baimashan Cement Plant has piloted the construction of a “cement kiln flue gas carbon dioxide capture and purification demonstration project”, which has been put into operation and is the first in the world’s cement industry to use carbon capture.
Investment suggestion: The company leads the industry in terms of cost and management, and is an excellent representative of the Chinese cement industry.
As the industry enters a new era of supply-side reform, green development has become a new trend. The company has taken the lead in many fields such as environmental protection promotion and smart factory construction. We believe that the company’s long-term competitiveness has been further enhanced.The company’s annual net profit attributable to the company is 308, 313 trillion, and 320 trillion, corresponding to 6 PE on March 22.
4 times, 6.
3 times, 6.
2x, maintain “Buy” rating.
Risk warning: demand exceeds expectations, regional synergy breaks