Donggang shares (002117): 1-3Q net profit increased by 5% Focus on subsequent new business development

Donggang shares (002117): 1-3Q net profit increased by 5% Focus on subsequent new business development

3Q results are in line with market expectations. 1-3Q19 results announced by the company: Revenue 11.

660,000 yuan, an increase of 0 in ten years.

1%; net profit attributable to mother 2.

06 ppm, an increase of 5 in ten years.

2%, in line with market expectations.

By quarter, Q1 / Q2 / Q3 revenue increased (decreased) 8 respectively.

2% /-5% /-3.

3%, net profit increased (decreased) 17.
.

6% /-0.

7% / 0.

2%.

  Development Trends 1. The revenue of 1-3Q companies is basically flat for two years.

1-3Q company revenue rose 0.

1%,其中Q2\Q3 有所下滑,主要系:1)印刷主业营收增长仍有压力,客户结构调整仍在继续;2)覆膜类业务、档案存储业务营收我们预计保持平稳增长However, due to the relatively low proportion, the overall driving force for revenue is small; 3) Other new businesses are still in the cultivation stage, and we do not expect the proportion to increase significantly.

  2. Profitability has improved.

1-3Q company ‘s gross profit margin increased short-term1.

3ppt to 41.

1%, mainly driven by factors such as falling raw material prices and optimizing customer 深圳桑拿网 structure; the expense ratio fell by 0 during the period.

3ppt, of which the sales expense ratio decreased by 0.

2ppt, management + R & D expense rate decreased by 0.

2ppt, financial expense ratio increased by 0.

1ppt, better overall cost control.

Under the combined impact of the decline in non-operating income and the improvement of the actual income rate, the company’s net interest rate increased by 0.

9ppt to 17.

7%.

  3. Follow up the development of new business.

In the new channel lottery sales business, due to changes in the bidding and settlement cycle, we expect revenue to improve in the first three quarters. In 2019, the company will provide technical support for lottery marketing activities in Shandong, Liaoning and other provinces, and follow-up observations of business expansion;In terms of e-ticket business, in addition to e-ticketing, the company also develops non-tax e-tickets, ticket delivery, blockchain e-tickets and other products, and pays attention to the subsequent development of related product customers.

  Earnings Forecasts and Estimates We maintain our 2019/2020 earnings forecasts.

50/0.

57 yuan unchanged.

It currently corresponds to 22 in 2019/2020.

5 times / 19.

9 times price-earnings ratio.

Maintain Outperform rating and 13.

Target price of 20 yuan, corresponding to 26.

4x 2019 P / E ratio and 23.

3 times the 2020 price-earnings ratio, 17 compared with the same period last year.
2% upside.
  The prices of risky raw materials fluctuated sharply, and new business development fell short of expectations.