Real Madrid Technology (603181) Quarterly Report Review: Small Variety Segments Continued Heavy Volume Performance Growth Exceed Expected

Real Madrid Technology (603181) Quarterly Report Review: Small Variety Segments Continued Heavy Volume Performance Growth Exceed Expected
2019Q1 revenue and performance growth 无锡桑拿网 were 7 respectively.87%, 57.10%, performance growth exceeded expectations.The company released the first quarter of 2019 report and achieved operating income4.07 billion (+7.84%), net profit attributable to mother 0.5.5 billion (+57.10%), deducting non-attributed net profit 0.4.9 billion (+45.72%), a substantial increase in the past, performance exceeded expectations. The small variety 北京夜网 sector continued to increase its volume, and its single-quarter gross margin hit a record high.In the first quarter of 2019, the company’s small variety segment sales1.9 Initially, the annual growth rate is 32.87%, the average bid of 14,388 yuan / ton, exceeding the decline of 2.48%; sales of large variety plates1.53 Initially, it fell by 0 each year.66%, with an average formaldehyde of 8873 yuan / ton, a year-on-year decrease of 20%.33%, the company’s gross profit margin increased by 3 under the combined effect.39 pcs to 22.97%, the net interest rate increased by 4.25 pcs to 13.54%, the gross profit margin and net profit margin in the single quarter both reached new highs in the past three years.In this regard, it benefits from the company’s business strategy of “adjusting the structure of large varieties and making profits from functional small varieties”, and constantly optimizing the product structure. The proportion of sales of small varieties has gradually increased, and profitability has continued to increase.Ways to actively expand the production of small varieties and further improve the company’s profitability. Layout of high-margin small varieties and new material products, investment projects into the volume period.The company’s current total output is 18 tons, of which the area of Lv’an Plant is 11 tons, and the production capacity of Zhangzhen New Industrial Zone is 7 tons. There are more than 1,300 product types, and it is the most complete domestic enterprise in China.The company’s output is increasing in production capacity, and investment projects are mainly focused on small varieties and new material products with higher gross profit, including production capacity 8.5 traces of small variety of surfactants and 10 insertion of new material resins, the new layout of the product will optimize the company’s product structure and significantly improve the company’s profitability. New production capacity will be gradually put into production in 2019, which will increase the company’s performance in the future and help the company to enter newA round of growth. Profit forecast and investment grade: We believe that the company’s product range is complete, and its scale and efficiency advantages are obvious. As a leading surfactant company, the company’s current global city share is still low, and it will be replaced by imported space in the future; meanwhile, its sales channels are stable and customersStrong stickiness, which has strong support for the company’s performance. We expect the company’s compound growth rate to be 30% in the next three years.The net profit attributable to mothers will be 2 in 2021.71/3.64/4.62 trillion, the current price of 21.41 yuan, corresponding to 16 times PE in 2019, maintain “Buy” rating. Risk Warning: Lower than expected downstream demand, rising raw material prices, risks of production safety, risks of exchange rate changes.