Taiji shares (002368) 2019 third quarter report comments: Q3 revenue accelerated and continued to grow

Taiji shares (002368) 2019 third quarter report comments: Q3 revenue accelerated and continued to grow

Matters: The company released the third quarter report of 2019 and realized operating income of 45.

84 ppm, an 18-year increase.

02%; net profit attributable to mother 7618.

310,000 yuan, an increase of 9 in ten years.

58%; deducted non-attributed net profit 6033.

08 thousand yuan, the average of ten years is 13.

50%.

Among them, Q3 achieved operating income of 15 in a single quarter.

71 ppm, an increase of 32 in ten years.

27%; net profit attributable to mother 5470.

480,000 yuan, an increase of 10 in ten years.

60%; net profit of non-return to mother is 4,492.

690,000 yuan, 10-year average of 10.

20%.

Comment: Q3 revenue growth has accelerated, and the market and research and development have expanded.

The company achieved operating income of 45.

84 ppm, an 18-year increase.

02%; net profit attributable to mother 7618.

310,000 yuan, an increase of 9 in ten years.

58%; of which, in the third quarter, a single quarter achieved operating income of 15.

71 ppm, an increase of 32 in ten years.

27%, significantly faster than Q1 and Q2.

The company’s profitability improved and its gross profit margin extended 2.

92 units.

At the same time, the market and R & D expenses increased significantly. The sales expense ratio, management expense ratio and R & D expense ratio increased by 1, respectively.

1 average, 0.

53 digits and 0.

The increase of 98 shares per share also added a better basis for the company’s subsequent business development.

Network security and autonomous and controllable business are developing well.

The subsidiary NPC Jincang’s business has developed rapidly in the first half of the year, and its operating income has increased by more than 50%. It has newly released three new products of Jincang HTAP distributed database KSOne, Jincang distributed video database system KVDB, and Jincang multiple data synchronization software KFSDistributed, video image processing, multiple data synchronization and other technology fusion innovations, starting a new journey in the field 武汉夜生活网 of database segmentation.

In addition, the company and Huawei set up a joint innovation laboratory to jointly create an open and compatible industrial ecosystem.

Convertible bonds were successfully issued, with overweight Xinchuang, cloud and industrial internet.

According to the announcement, the company has successfully issued convertible bonds and plans to raise US $ 1 billion for Taiji Xinchuang’s key technology and product research and development and industrialization projects, Taiji cloud computing center and cloud service system construction projects, and Taiji industrial Internet service platform construction projects.And replenishing liquidity.

The company will further enhance the expansion in the fields of cloud computing, Xinchuang and Industrial Internet, focusing on increasing the layout of cloud computing, system integration, and main software applications based on autonomous systems, middleware, and databases under safe and controllable conditions.It helps the company to build a secure and controllable information technology system.

Investment suggestion: We continue to be optimistic about the company’s network security, autonomy and controllability, and the growth prospects of the government cloud business.

Maintain forecast that the company’s net profit attributable to the parent for the years 19-21 will be 3 respectively.

9.6 billion, 4.

85 billion, 5.8.9 billion, corresponding to PE is 34 times, 28 times, 23 times, maintaining target price of 40.

17 yuan, maintaining the “strong push” level.

Risk warning: the competition in the government cloud market is intensifying; the expansion of autonomous and controllable services is less than expected.

Bank of Communications (601328): Why Social Security Cuts Bank of Communications-Self-Adjusting Asset Portfolio

Bank of Communications (601328): Why Social Security Cuts Bank of Communications-Self-Adjusting Asset Portfolio

The company maintains the situation of Bank of Communications.

The company maintains 9 billion H shares of the Bank of Communications, accounting for 12% of the total share capital.

18%, this belongs to strategic investors.

The company maintains A shares.

800 million shares, accounting for 2% of total equity.

53% was obtained by participating in the rights issue in 12 years, and the ban was lifted after 3 years.

The reason why Social Security chose to reduce its holdings: adjust its asset portfolio.

This time, it is planned to sell the shares participating in the placement in 2012 (not exceeding 14.

900 million shares, currently corresponding to 9.3 billion market capitalization, Bank of Communications 2% of capital), this is a trading order, earning 73% in 6 years, the income is pretty good, new asset allocation in the future; the remaining holdings.

18% is a strategic investment and a basic shareholding that is expected to be held for a long period of time (the Bank of Communications intends to issue 60 billion convertible bonds. If social security does not reduce its holdings, it will account for 4% of A shares.

78% requires 28.

700 million relevant funds to subscribe).

We expect it to be social security’s own behavior, not related to overall financial policy.

The market has been overly concerned. The reduction in the holding of social security by BOCOM is due to the need to adjust its own asset allocation, while still being a long-term strategic investor of BOCOM; it has nothing to do with the policy’s attitude towards the stock market.

The fundamentals of the Bank of Communications are stable and good: at the end of 18, 1, the company’s performance growth continued to increase, and the revenue and PPOP growth gradually replaced the best levels since the end of 2014, respectively + 11% and + 13%.

2. The overall view of asset quality is stable and tends to improve in multiple dimensions.

From the indicators of non-performing rate, overdue rate, and provision coverage ratio, the overall quality of assets is stable. From the indicators of non-performing net generation and overdue net generation, asset quality is on the marginal improvement channel.

Cost control was good in the third and fourth quarters, and the high increase in consolidated revenue led to a decline in cost-to-income ratio.

Investment suggestion: The company 2018, 2019E PB 0.

73X / 0.

65X; PE 6.

74X / 6.

4X (original line PB 0.

85X / 0.

75X; PE 6.

76X / 6.

45X), the profitability of Bank of Communications has 北京夜网 substantially improved compared with the previous period, the asset quality continues to improve, and the overall basic direction is upward, better than expected, the current discount is estimated to be high, and it is recommended to pay active attention.

Risk warning: the macro economy is facing downward pressure, the company’s deposit competition is under pressure, and performance management is less than expected.

Lao Fengxiang (600612): A hundred-year-old shop has benefited from rising gold prices, opening stores at home and abroad to consolidate brand influence

Lao Fengxiang (600612): A hundred-year-old shop has benefited from rising gold prices, opening stores at home and abroad to consolidate brand influence
Backed by state-owned assets, spanning three centuries, it has a long history and a long history as a leading company in the jewelry industry.The company was founded in 1848 and has a history of more than 170 years.After several changes, the company has gradually developed into a leading jewelry company in China.The company mainly produces and sells military gold jewellery, arts and crafts, and pen stationery products. Among them, jewellery revenue contributed the largest proportion. The overall recovery of the gold jewellery industry, the huge demand for gold jewellery, the future increase of the gold jewellery industry: 1) Per capita jewelry consumption in developing countries as a percentage of alternative disposable income.31%, about US (0.68%) bilateral.In the future, if national income continues to grow, the long-term development of the jewelry industry is expected to further improve.2) Marriage awareness of wedding jewelry has increased, the number of marriage registrations is expected to usher in a peak, and the wedding population bonus will promote the consumption of jewelry.3) Carrying out the urbanization process, jewelry consumption in the third and fourth tier cities will become the main battlefield.Driven by jewellery penetration rates in third- and fourth-tier cities and a large population base, the jewellery industry 合肥夜网 still has development potential. Gold has been a major consumer product in the jewelry market in developing countries.In 2018, the consumption of gold jewellery reached a record high in one year, and has ranked first in the world for the consumption of gold jewellery for many years. Showcases increased market share, business expansion to the global consolidation of brand influence, channel coverage has obvious advantages, and the number of outlets is leading the industry.In 2018, the company’s store outlets totaled 3,521. Before 2017, the net increase was 347, and the store’s rapid expansion capacity was transferred.The company’s total number of stores has always been more than related, maintaining the domestic market leader, with significant channel advantages.The continuous development of the marketing network layout provides the most fundamental guarantee for the continuous growth of the company’s performance.In addition, the company accelerated the development of overseas markets and consolidated the brand’s influence at home and abroad.The gold jewelry industry is highly homogeneous, and brand influence improves competitiveness.In 2018, the company opened 6 new overseas stores (1 in the United States and 5 in Hong Kong).By the end of the year, the number of overseas stores had reached 19, with annual operating income3.96 ppm, an increase of 30 in ten years.43%. Centennial brand influence, help channels sink overseas expansion, cover for the first time, give “recommended” rating in 2019. Channels will sink further, completing the intensive layout of low-tier cities; gradually, Lao Fengxiang Hong Kong has wonThe US $ 200 million syndicated loan for the lead bank will help accelerate the company’s expansion of stores outside mainland China.Merging the company’s own design and supply chain advantages, the century-old brand has a solid influence, which helps the company to expand its channels at home and abroad.The state-owned enterprise reform is expected to resume, and the company’s senior executives hold shares to optimize the company’s internal efficiency.Regardless of the expectations of the state reform for the time being, it is expected that the company’s net profit attributable to its mother in 2019-2021 will be 13 respectively.2.1 billion, 14.34 ppm and 15.8.3 billion, with EPS of 2.52 yuan, 2.74 yuan and 3.03 yuan, the corresponding PE is 18X, 17X and 15X.Covered for the first time and given a “Recommended” rating. Risk Warning: Industry Competition Expansion Stores Expected Less Than Expected, Gold Price Fluctuations Exceeded Expectations, National Reform Uncertain

The A-share new force is gathering hundreds of billions of foreign funds each year to invest in the market?

The A-share new force is gathering hundreds of billions of foreign funds each year to invest in the market?

Economic Observer reporter Zheng Yizhen reports from Beijing that if “European stock god” Anthony Bolton can enter the Chinese market later, perhaps his investment strategy will not be defeated by the “immature market” at that time.

After all, a generation of stock gods can’t compete with the entire market. Six years after Anthony Bolton exited the Chinese market, foreign countries gathered in A shares are participating in the Chinese stock market and undergoing a structural change.

  After 4 am on September 7, the S & P Dow Jones Indices announced a specific list of A shares.

The list went into effect on September 23, and more than a thousand A shares were allocated to S & P Dow Jones’ six major index families.

The market is holding its breath looking forward to September 23rd. On the same day, FTSE Russell also raised the A-share replacement factor from 5% to 15%. The two major international indexes attempted to bring A-shares more than $ 5 billion in incremental funds.

At that time, A shares will formally merge the three major global index companies-MSCI (Ming Sheng Index), FTSE Russell and S & P Dow Jones.

The scale of foreign admissions brought by the three major indexes this year is expected to reach 100 billion yuan.

  At present, every expansion of the A-share international index affects the nerves of the market.

The recent expansion of MSCI on August 27th brought tens of billions of capital inflows to A shares within three minutes of the end of the market. The rare “pulse market” made the market look at foreign big moves.

  In the A-share market, the foreign stock market value has quickly caught up with public offerings, and insurance capital has approached the trend of tripartite triumphs, and is expected to be on par with public offerings by the end of this year.

Shanghai-Hong Kong Stock Connect opened in 2014, and Shenzhen-Hong Kong Stock Connect opened in 2016.

Since the exclusion of MSCI from A shares in 2018, they have swarmed in with foreign scale and speed.

In the first half of 2019, the net inflow of Beishang funds has reached 149.6 billion yuan in A-shares. The A-share split between FTSE Russell and S & P Dow Jones will also be launched this year.

The size of foreign allocation of A shares has soared from about 300 billion in 2013 to 1 in the middle of this year.

65 trillion, has become the most important source of incremental A-share funding in recent years.

As of the end of June, public equity funds held a stock market value of 2 trillion yuan, of which only a difference of more than 350 billion US dollars.

  Fortunately than Anthony Bolton, for the current foreign institutional investors, they are ushering in a new wave of opening up in China’s financial industry.

Including expanding the Shanghai-Shenzhen-Hong Kong Stock Connect quota, researching and expanding QFII and RQFII access conditions and investment scope, discussing how to improve the holder’s equity ratio and the intensive introduction of various open policies, continue to increase.

As the A-share market ushers in the “Golden Nine, Silver and Ten” market, the State Council’s Financial Stability Development Committee has again adjusted the A-shares, and it is necessary to solidly cultivate various types of institutional investors, create good conditions for more long-term capital to continue to enter the market, establish a good market ecology, and strengthenThe vitality, benefits, and service capabilities of the capital market have truly become a “booster” for economic growth and development.

  In the next five to ten years, foreign shares in A-shares are expected to reach 10%, truly becoming a new force that cannot be ignored in China’s stock market.

At this point in time, styles and trends that have not appeared in the A-share market have appeared before—for example, large-cap stocks have consistently outperformed small-cap stocks for three consecutive years, retail shares have continued to decline, and transactions have become increasingly concentrated.

From short-term speculation to long-term investment, the path of Chinese investors’ A-share asset appreciation is quietly changing.

  Domestic and foreign dances Since the end of 2015, the trend of large-cap stocks outperforming small-cap stocks has continued for about three and a half years, the longest record since 2005.

Comparing the South Korean and Taiwan stock markets, since MSCI completely separated them, large-cap stocks have continued to outperform, and there have been almost no major style changes.

  Such a change is difficult to predict for domestic investors.

An analyst at a large brokerage firm in Beijing remembers that when he went to a Shanghai fund company for a roadshow in 2015, he mentioned that a TMT stock had already come to an end, and the fund manager rejected it on the spot “without imagination, it can go up 10 times”.
  Now, the old stars of GEM, such as LeTV and Stormwind, have fallen, and the blue-chip stocks have become the market’s sweet spot.

Consistent with this trend, after the Shanghai-Shenzhen-Hong Kong Stock Connect opened one after another in 2014, foreign countries continued to grab large-cap blue chips, especially large consumer stocks. The computer sector responded flatly to the technology that many domestic institutional investors are keen on.

  Under the recent expansion of the A-share MSCI and FTSE Russell, and in addition to the many positives of the S & P Dow Jones Indices, the Shanghai Stock Connect closed a net purchase of US $ 5.5 billion on September 6, and until September 6, the Shanghai Stock Connect has been continuousNet buying on the 7th trading day.

Foreign accumulation has lowered expectations of lowering standards, and A shares have also ushered in the “Golden Nine Silver Ten” market. Since September 2, A shares have risen for five consecutive times. The Shanghai Composite Index once stood at 3,000 points, and the GEM index once exceeded 1700 points.

On the evening of September 6, we gradually lowered the quota and decided to reduce the deposit reserve ratio of financial institutions to 0 on September 16, 2019.

Five exemptions (excluding finance companies, financial leasing companies and auto finance companies) are expected to release 900 billion funds, and the market’s profit-making effect is further highlighted.

  The foreign exchange flowing into A shares following the three major index companies is divided into active funds and passive funds.

After the first phase of FTSE Russell is completed (that is, in March next year, a division factor of 25%), China A shares are expected to weigh about 5 in the FTSE emerging market index.

36%, representing that the index alone can bring in a net inflow of $ 10 billion in passively managed assets.

FTSE Russell stated that this is purely passive management of funds and we cannot predict actively managing funds.

  Similarly, a large part of institutional investors tracking MSCI are long-term funds such as sovereign wealth funds, insurance funds, social security funds, etc., which have 3-5 years or even periodic allocation requirements.

Its investment philosophy is not the same as that of A shares before. Some types of investments will have ESG (ie environmental, social and corporate governance) themes. Some investors passively track the index.Large, also brings a closer investment strategy to the A-share market.Overseas institutional investors attach great importance to the comparison with benchmarks, and domestic active funds may pay more attention to indicators such as performance rankings.

  On August 27, the proportion of A-shares was increased from 10% to 15%. After the MSCI semi-annual index assessment in November, it was converted to A-shares and the proportion of large-cap stocks increased to 20%. At the same time, mid-cap stocks were replaced by 20%.

MSCI estimates that 80 billion U.S. dollars flowed into A shares last year.

According to MSCI forecasts, the size of global tracking funds for the emerging market 南京桑拿网 index and the global market index is 1, respectively.

$ 6 trillion and 3.

$ 2 trillion.

The Shanghai-Hong Kong Stock Connect opened in 2014, the Shenzhen-Hong Kong Stock Connect opened in 2016, the A-share split in 2018 was MSCI, and the 2019 A-share split in FTSE Russell and S & P Dow Jones.

  This part of foreign investment style is increasingly affecting the A-share market.

According to Zhou Hao, senior economist at Commerzbank in Asia, foreign countries have a longer-term view, and the inspection cycle of investment managers is relatively long.

In the process of communicating with foreign investors, you will find that the idea of foreign investment is relatively simple-invest in stocks in this market that cannot be invested in other markets.

Foreign opinions on estimates are also very simple. They are based on three tables of financial statements, looking 佛山桑拿网 at cash flow and expected cash flow.

Some overseas institutional investors will make some assumptions based on the financial report, regularly discuss whether the assumptions are reasonable, repeatedly demonstrate, and be cautious. The number of investment stocks to supplement each year is also very limited.

  Foreign countries tracking the index mainly enter A shares through Shanghai-Shenzhen-Hong Kong Stock Connect.

In private equity funds, Hou Anyang, the chairman of Ruo Ruoshui, believes that this part of the Shanghai-Shenzhen-Hong Kong Stock Connect funds prefers performance-driven companies and also prefers Chinese companies with industrial advantages. Therefore, large consumer products such as home appliances and new energy vehicles.
“This wave of stocks selected by foreigners are good targets. They are all companies with high ROE (return on equity) or stable cash flow.

“It is also a large consumer sector. Foreign estimation systems are significantly different from domestic investment.

Guosheng Securities analyst Zhang Qiyao explained that somehow we think that Coca-Cola’s estimates are more expensive than Apple’s. In the foreigner’s estimation system, Coca-Cola has been around for 100 years, but technology companies like Apple and even Nokia have only existed for a few years.It collapsed within a few years, and foreign countries paid more attention to the moat and the determined premium.

Now that foreign countries have gradually mastered the voice of consumer stocks, there will be an increase in the allocation of growth stocks in the future.

  However, the investment strategies of foreign and domestic investment are inferior and inconclusive.

Hou Anyang remembered that “European stock god” Anthony Bolton had also been “beaten” with a bruised face and swollen face in Hong Kong.

In April 2011, Bolton established a special situation called Fidelity China, which plans to invest in small and medium-sized consumer enterprises in mainland China within one year.

The target of its investment was frequently struck by lightning. Some Ajisen China and Bawang Group encountered the “Bone Soup Gate” and the “Dioxane Incident”, respectively, and decreased by 34 each year.

53% and 64.

At 08%, Xi’an Baorun was charged with fraud and the combined decline was more than 90%.

Two years after its establishment, the fund has a limit of 14.

42%.

In contrast, Anthony Burton had a 28-year annualized return of 19 during the period from 1979 to 2007 when he was in charge of Fidelity’s UK Special Situations Fund.

5%.

  Zhou Hao said that any model has its own merits. The investment concept is highly related to the company’s culture and genes.

A domestic investor advocates the investment concept of “Hurry up and catch up”.

In many foreign countries, investors often invest. Vanguard, the world’s largest public fund, makes ETFs on a large scale, and some companies are more willing to dig out individual stocks.

But it is certain that the long-term performance returns of institutional investors are much higher than those of retail investors, because their strategies are fixed and do not easily follow the wave.

  Hou Anyang believes that overseas institutions have long-term studies of some industries that are more profitable, and some consumer industries have advantages here.

Some prejudgments that do not involve China’s national conditions are quite accurate.

There are many non-market factors in the Chinese market. This part of the research on foreign investment is not good at domestic institutions. Domestic institutions, research and listed companies are closer.

However, “For us, foreign investment is not important, and they will not be interfered by when making investment decisions.

“What did foreign invest?

  At present, foreign countries enter China mainly through Shanghai-Shenzhen-Hong Kong Stock Connect and QFII / RQFII channels.

QFII / RQFII requires the qualification approval of the CSRC and the quota approval of the SAFE. The advantage is that it can invest in a wider range of A-share targets and can also invest in other products such as bonds.

The Shanghai-Shenzhen-Hong Kong Stock Connect is a direct interconnection between the mainland and Hong Kong exchanges and settlement companies. It has low cost and convenient transactions. Most of the large-cap stocks can be bid.  Since the opening of the Shanghai-Shenzhen-Hong Kong Stock Connect, there has been a net inflow of 782.8 billion yuan from the north, of which 439.7 billion yuan is for the Shanghai Stock Exchange and 343.1 billion yuan for the Shenzhen Stock Exchange.

The total market value of Northbound funds was 45 trillion yuan, of which 30 trillion yuan was traded on the Shanghai Stock Exchange and 15 trillion yuan was traded on the Shenzhen Stock Exchange.

  As of September 5th, the top ten stocks with the largest value of Shanghai Stock Connect holdings were, in order, Moutai, Guizhou, Ping An of China, Hengrui Medicine, China Merchants Bank, China International Travel Service, Yangtze Power, Shanghai Airport, Yili, Conch Cement and Haitianwei.Industry, are blue-chip white horse stocks.

The largest holdings on the Hong Kong Stock Connect are Midea Group, Wuliangye, Gree Electric, Hikvision, Ping An Bank, Yanghe, Vanke A, Aier Ophthalmology, Yunnan Baiyao and Focus Media.

Northbound funds are mostly in the food and beverage industry.

  Guosheng Securities research report data shows that foreign countries are concentrated in the consumer and financial sectors, of which the food and beverage industry is particularly preferred.

As of February 1st this year, Kitakami Capital’s most favored large consumer sectors (food and beverages, pharmaceuticals, biotechnology, and household appliances), followed by the financial industries (banks, non-bank finance). The total positions of the top five heavy storage industries reached 57.

8%, and the largest heavy storage industry food and beverage positions close to 20%.

  Some foreign stocks, such as Han’s Laser and Midea Group, have been touched.

The existing regulatory documents stipulate that the sum of all foreign investors’ shareholdings in the A-shares of a merged listed company must not exceed 30% of the total shares of the listed company.

  According to Wind data, in terms of Shanghai Stock Connect, foreign holdings of Shanghai Airport accounted for more than 29% of its free circulation, and foreign holdings accounted for more than 20% of its free circulation market value. Founder Securities (rights), Hengli Hydraulics, China National Travel Service, Hongfa, Haitian Flavor, Conch Cement, Moutai, Guizhou, Angel Yeast, Shuijingfang, Zhongnan Media, Yifeng Pharmacy, Haier Zhijia, Yutong Bus.

In terms of Hong Kong Stock Connect, Aier Ophthalmology’s foreign shareholding is close to the upper limit, reaching 29%. In addition, Supor, China Test, China Resources Sanjiu, Yixintang, Boss Electric, Sanhua Intelligent Control, Midea Group and other large consumer stocksThe proportion of shares in free float also exceeded 20%.

  For QFII, Wind data shows that as of August 30, 2019, QFII investment quota was US $ 111.4 billion and RQFII investment quota was US $ 693.3 billion.

  The semi-annual report just concluded shows that at the end of the second quarter, QFII appeared among the top ten shareholders of tradable shares of 293 companies. From the perspective of shareholding, QFII has priority over finance and the consumer industry is also in its favor.

The top ten stocks held by QFII are Bank of Beijing, Bank of Nanjing, Huatai Securities, Bank of Ningbo, and Baotou Iron & Steel, China Construction, Midea Group, Haier Zhijia, and Jiangsu Leasing.

And the largest increase in warehouses are China Construction, China Merchants Shipping, Bank of Ningbo, WuXi AppTec, Hainan Rubber, Han’s Laser and so on.

  In the second quarter, non-bank financial stocks Huatai Securities and Oriental Wealth increased the most in QFII. Among them, Citi Global Financial Corporation bought a large amount of 8.

2.5 billion Huatai Securities, accounting for 13% of outstanding shares.

16%.

In addition, consumer stocks-Jiajiayue of the supermarket chain, tissue paper Zhongshun Jierou, and intelligent home appliances intelligent Sanhua Zhikong also received more than 10 million new QFII purchases.

  For the high-end rising liquor sector, many foreign investors chose to make a profit.

Among the stocks that suffered liquidation or reduction in the second quarter, there were too many liquor companies.

Shuijingfang was cleared by Goldman Sachs, and more than 9 million shares were sold in Maotai, Guizhou. Liquor companies such as Yanghe shares, Jinhui liquor, Wuliangye were also reduced by QFII.

In addition, the largest reductions in QFII are Baosteel, Haier Zhijia, Industrial Fulian, Hytera, Tonghua Dongbao and Zhongtai Chemical.

The companies that were cleared by QFII include Hikvision, China Merchants Highway, Tiandi Technology, Ningbo Port, Sun Paper, Jinzhengda and other companies.

  UBS Securities believes that in the long run, overseas investors have always preferred consumer sectors such as food and beverages and durable consumer goods.

However, overseas investors are also paying close attention to the estimates in the medium term. In the second quarter of this year, they reduced their holdings of food and beverages estimated to be above the historical average.

In terms of individual stocks, the flow of funds to the north indicates that foreign investors favor stocks with large market capitalization and strong liquidity.

The types of stocks are characterized by high ROE, high dividend yields and low P / E ratios.

According to our exchanges with overseas investors, they favor leading and unique companies that are competitive and unique, as well as companies that have a comparative advantage in estimating and profitable growth globally.

  Indeed, foreign investment strategies have always been to buy only one dragon but not two.

Guosheng Securities analyst Zhang Qiyao said that some foreign countries have always liked to buy Shanghai Airport, and they started to buy Baiyun Airport only after it was full.

Of the 28 Shenwan Tier 1 industries, the largest foreign holdings are 20 of which are absolute industry leaders (the largest market capitalization).

The rest are basically leading companies in segmented industries.

  Changes in the long-term data show that until the end of the second quarter of 2019, foreign investors’ A-shares held stock market returns.

65 trillion yuan, compared with 1 at the end of 2018.

15 trillion yuan, an increase of 43%, accounting for the total domestic market value and free circulation market value3.

1% and 7.

5%.

  Guosheng Securities Research reported that in 2019, A shares will be officially divided by the FTSE Russell Index, and the replacement factor in MSCI will be increased to 20%. If it can be landed as scheduled at the same time, it is expected to bring about an increase of about 400 billion.In the long run, Taiwan, Japan, South Korea and other overseas markets account for foreign exchange. If the foreign shareholding ratio reaches 10%, it will bring about 4 trillion incremental funds; further, if the excess shareholding ratioIf it can reach 15%, the scale of incremental funds will reach 6.

68 trillion yuan.

  With the expansion of foreign power, the historical proportion of A-share retail investors is high, and the trend of serious speculative market distortions has been reversed. The two A-share markets have shown significant changes-institutionalization and internationalization.

According to the CICC Research Report, the proportion of individual investor holdings in the total market value has dropped from 28% in 2014 to 21% in 2018, and the proportion of individual investor holdings in “free market capitalization” has fallen from 2014.72% fell to 53% in 2018.

  At the same time, the proportion of A-share institutional investors is also steadily increasing.

The data of CICC Research show that the proportion of institutional investment holdings in the total market value has increased from 11% in 2014 to 19% in 2018, and the proportion of institutional investors’ holdings in “free market capitalization” has increased from 201428% rose to 48% in 2018.

Private equity funds, insurance, and public equity funds (excluding shares held by insurance, social security, annuities, etc.) are the types of domestic institutional investors holding the most shares, accounting for about 9 of the free float market value.

2%, 9.

0%, 6.

3%.

Foreign holdings through QFII and Interconnect account for about 6 of the free float market capitalization.

7% is the third largest institutional investor category.

  Continued foreign inflows have had a significant impact on A shares.

Wang Hanfeng, chief strategy analyst of CICC, explains these changes from four dimensions.

The first is that the influence of fundamental factors of A-shares has increased. In recent years, fundamental factors such as ROE, profit growth, and valuation have explained the excess returns of stocks, while the role of speculative factors has decreased significantly.

Second, the blue-chip stocks continued to outperform.

Third, the estimated premiums for small and medium-cap stocks have narrowed. Since 2016, the estimated premiums of small- and mid-cap stocks relative to large-cap stocks have narrowed to historical lows.

Fourth, transactions are increasingly concentrated in the “leading position”. In 2018, the top 1% of A-shares accounted for 15% of the market’s total transaction volume, the highest since 2009; the 30% of A-shares after the transaction accounted for the market.The percentage of transactions was 6%, the lowest since 2009.

  FTSE Russell said that many investors in China’s A-share market are retail investors and short-term investors, and they value short-term returns.

With the improvement of China’s level of opening up and the implementation of international indexes such as FTSE Russell divided by A shares, the medium and long-term investment methods of foreign institutional investors will bring more stability to the Chinese capital market and make the A share market moreRationality will also bring the concept of diversified asset allocation to Chinese investors.

  By contrast, in the economies of South Korea and Taiwan, foreign allocation has reached a weight of 15% -30%. Now foreign countries have entered a stage of mutual flows.

In the ten years when foreign countries entered the market, the turnover rate and change rate of South Korea and Taiwan have decreased significantly. The value and institutionalization of the entire market is obvious. The two markets have not experienced a major style switch.Large-cap stocks continue to outperform, and in the past, A-shares often switched between small and large-cap styles.

In addition, the correlation between South Korea, China Taiwan stock indexes and the US market has greatly improved.

  Zhang Qiyao said that from many Taiwan and South Korean foreign stocks with relatively high foreign shareholdings, like Samsung and TSMC, it can be found that the foreign exchange shareholding ratio and the existence of correlation are much higher than the correlation with the company’s profit, while a large numberDue to fluctuations in the company’s short-term profitability for one or two years, the company will increase or decrease the allocation.

A shares are also undergoing similar changes, and the correlation between A shares and US stocks has also increased over the past few years.

  Foreign investment targets and investment strategies have become one of the benchmarks of A shares.

The fundamental mechanisms are strengthening the rich inflows, helping A-shares to build a more rational market.

In April last year, the Securities Regulatory Commission will quadruple the Shanghai-Shenzhen-Hong Kong Stock Connect quota and the interconnection mechanism will be further improved. In January this year, the Securities and Futures Commission will openly solicit opinions on relaxing QFII and RQFII access conditions and investment scope. In March, the Deputy Chairman of the Securities and Futures CommissionYan Qingmin stated that he would conduct a co-ordination study on the issue of the high proportion of shares held by researchers. In June, the CSRC stated that it would open and open private placements to invest in the Hong Kong stock market through the “Hong Kong Stock Connect”; in July, the supervision would cancel securities internally in 2020,Fund management and other companies’ foreign share ratio restrictions.

  As reported by the Securities and Futures Commission in August this year, as global trade frictions intensified, in response to market doubts beyond China, the momentum of foreign exchange investment in A-shares gradually weakened, the Securities Regulatory Commission expanded and even opened the capital market to the outside world, and accelerated the improvement of the securities servicesOpen policies, improve the rules and regulations for foreign investors to participate in the A-share market, effectively protect the legitimate rights and interests of various investors, and promote the steady and healthy development of the capital market.

Fuyao Glass (600660) Quarterly Review: Exploiting New Business Performance of Aluminum Trims in Accordance with Expectations

Fuyao Glass (600660) Quarterly Review: Exploiting New Business Performance of Aluminum Trims in Accordance with Expectations
Excessive float capacity, SAM integration in Germany, performance in line with expectations On October 30, the company disclosed three quarterly reports, the first three quarters of gradually realized revenue of 156.3.4 billion, +3 per year.4%; net profit attributable to mother 23.4.7 billion yuan, -28% a year; of which Q3 achieved operating income of 53.4.6 billion, +6 per year.1%, net profit attributable to mother 8.4.1 billion, -39.6%, net profit after return to mother 7.85 billion, previously -20%, net profit decreased because last year Q3 company sold 51% equity of Futong Safety Glass Company generated non-recurring income4.500 million US dollars, Q3 after non-deductible results in line with expectations.In 2019, domestic automobile sales have increased significantly, the company’s float glass production capacity is excessive, and the integration of German SAM, float glass sales and German SAM replacement has weighed on the company’s gross margin.We expect the company’s EPS to be 1 in 19-21.28\1.37\1.60 yuan, maintaining the “overweight” level.  Q3, the company achieved a gross profit margin of 37.2%, six years -6.91pct, chain +1.12pct, we believe that the nature of the decline in gross profit margin is the decline in domestic automobile sales and insufficient accumulated throughput. The float glass sales have weighed on the gross profit margin. On the foreign side, the newly acquired German SAM company has completely consolidated its balance sheet.Status status; sales expense ratio 7.0%, one year -0.1 point; management expense ratio 13.4% (including R & D expenses), at least 1 per year.5pct, basically unchanged from the previous month; financial expenses are -1.7.6 billion yuan, Q3 company exchange gains2.2.3 billion.Net operating cash inflow of the company 14.USD 6.6 billion, -24% for one year; accounts receivable and bills for half a year -5.5%, the company accelerated the collection of accounts receivable; the inventory for ten years + 10%, mainly due to the increase in float glass inventory; accounts payable and bills -21% each time.  The production capacity of the US plant continues to climb, and the German SAM integration or completion will be completed next year. According to the data of the China Automobile Association, China ‘s auto output in Q3 is 6 million units per year.24%, the decline was significantly narrower than the second quarter.We expect that due to the gradual improvement of downstream demand, year-end impulse and the base of the same period last year, domestic production of Q4 is expected to further improve.The company’s continued growth in revenue was primarily due to the consolidation of German SAM and the rapid growth of its overseas business.At present, German SAM is still in the process of integration and is in the state of gross profit growth. The company expects that SAM is expected to be integrated next year, and the aluminum trim business is expected to become a new growth point for the company.We expect the U.S. plant capacity to reach 380 in 19?With a capacity of 3.9 million units, the U.S. plant capacity reached 4.6 million in 20 years. Through the gradual climb of the throughput of the U.S. plant, the net profit margin improved, and Fuyao ‘s market share in the United States is expected to continue to increase.  The automotive glass leader develops new businesses and maintains an “overweight” rating. We believe that it should be replaced by the total growth in Q3 domestic automobile market demand and overseas business integration.However, in the long run, the company’s cash flow management is better. It has bargaining power in the industry chain, rich cash dividends, active overseas expansion, US factories turning losses into profits, and a broad market space in the future.The company actively expands aluminum trim business and looks for new growth points.We predict company 19?21 year net return to mother is 32.10, 34.31, 40.0.8 billion yuan (down 2).3%, 9.3%, 8.8%), the corresponding EPS is 1.28\1.37\1.60 dollars.The company in the same industry has 20 times the PE of 19 years. Considering the company’s rich cash dividends, the prospect of 杭州桑拿 expanding new business is expected.20 times PE error, adjust target price range to 24.32?25.6 yuan to maintain the “overweight” level.  Risk warning: Sino-US trade conflicts intensify; the company’s overseas expansion is less than expected; raw material prices rise.

Wuliangye (000858): Xinpuwu gives the company flexibility in performance

Wuliangye (000858): Xinpuwu gives the company flexibility in performance

The eighth generation of Wuliangye Classic was officially launched, optimistic about the brand enhancement brought about by the upgrade. It is said that Wuliangye ‘s official website reported that on May 20th, “Ingenuity Inheritance · Classic Persistence——2019 Classic Wuliangye Cross-Version Ceremony” was held in Yibin, Sichuan, which lasted 16The seventh-generation classic Wuliangye was put off production and the eighth-generation classic Wuliangye was put into production.

On the basis of inheriting and continuing the classics, the eighth-generation Wuliangye upgraded its quality, packaging, and anti-counterfeiting. At the same time, the ex-factory price of the eighth-generation Wuliangye increased by about 12% compared with the seventh-generation product, and the ex-factory price difference with Feitian Maotai was furtherShrinking, product 武汉夜生活网 brand power has also been improved.

What do we expect Wuliangye 2019?
The EPS in 2021 will be 4.

70 yuan, 6.

05 yuan and 7.

32 yuan, maintain “Buy” rating.

The eighth-generation classic Wuliangye: triple upgrade of quality, packaging, and anti-counterfeiting. The official website of Wuliangye shows that the seventh-generation classic Wuliangye has been in production for 16 years and gradually produced 12 since its launch in 2003.

More than 30,000 tons, more than 2.

4.7 billion bottles, is one of the important “big singles” in the history of the development of Imperial liquor.

In order to comply with the escalating trend of liquor consumption, the eighth generation has triple-upgraded quality, packaging and anti-counterfeiting.

In terms of quality, it also highlights the unique style of Wuliangye’s “long aroma, mellow taste, sweet mouth, fresh throat, harmonious flavors, just right, especially known for its comprehensive wine taste”; excellence in packaging, certain textures, openMore convenient and better experience. In terms of traceability and anti-counterfeiting, it has an intelligent code management system composed of bottle caps, boxes, and boxes with multiple code associations, which enables the entire process of product production, logistics, warehousing, and sales to be traced to the source.

Product upgrades promote higher terminal prices, the restructuring of Wuliangye’s price system to rebuild the eighth-generation classic Wuliangye’s triple upgrade also drives the product’s ex-factory price. In March 18th, the antique Wuliangye brand dealers’ marketing work, the company saidThe price is around 889 yuan / bottle, which is about 12% higher than the previous seventh-generation price.

Driven by product upgrades, the seventh-generation Wuliangye concentration price continued to rise, and dealers’ profits improved, raising prices for Puwu new products, controlling profit distribution and digital empowerment.

At present, Wuliangye Company is actively carrying out the eighth generation Wuliangye tasting meeting across the country. The dealers have full confidence in the new products, consumers’ feedback on wine has improved significantly, and product compensation prices and terminal prices have also been effectively supported.

Optimistic about the income and profit flexibility brought by product upgrades, maintaining the “Buy” rating of the introduction of the eighth-generation classic Wuliangye, gradually reshaping the product price system, ensuring the stability of dealer profitability, and gradually increasing the price difference between Wuliangye and MaotaiTo enhance the brand power of Wuliangye.

What do we expect Wuliangye 2019?
In 2021, sales revenue will be 519.

700 million, 646.

200 million and 773.

USD 500 million, with annual growth of 30%, 24% and 20% respectively; EPS is 4 respectively.

70 yuan, 6.

05 yuan and 7.

32 yuan, an increase of 36%, 29% and 21% each year.

The average PE of comparable companies in 2019 is 30 times. Since the comparable companies in 19-21 forecast the average average compound profit growth rate of 22%, the company’s performance growth rate is higher than this level.
35 times PE estimates, the target price range is 150.

40 yuan?
164.

50 yuan, maintain “Buy” rating.

Risk reminder: the risk that the price is not up to expectations, the risk that the market demand of the eighth-generation classic Wuliangye is not up to expectations, food safety issues, etc.

Depth-Company-Linyang Energy (601222): Interim report performance grows rapidly, smart sector volume can be expected

Depth * Company * Linyang Energy (601222): Interim report performance grows rapidly, smart sector volume can be expected

The company released its 2019 Interim Report, which basically met expectations.

The company’s distributed photovoltaic turbine leader is stable and stable, and the smart sector is expected to benefit from the start of domestic electricity meter demand; maintain a BUY rating.

Key points supporting the rating The first half profit growth of 5% is basically in line with expectations: the company released its 2019 Interim Report and the first half revenue was 16.

68 ppm, a 10-year increase3.

37%; net profit attributable to shareholders of listed companies4.

18 ppm, a five-year increase of 5.

30%; profit after deduction 4

40,000 yuan, an increase of two in ten years.

57%.

Among them, 2019Q2 was profitable 2.

63 ppm, a five-year increase of 5.

10%.

The company’s performance basically met expectations.

Revenue from photovoltaic power generation has steadily increased, and N-type battery capacity has been actively invested in: the company’s new energy segment business realized revenue in the first half of the year.

10,000 yuan.

In terms of power generation business, as of mid-2019, the company has installed about 1 installed capacity of various photovoltaic power stations that are connected to the grid.

5GW, 9 in the first half of the year.

5.7 billion kWh, an annual increase of 11.

14%, realized electricity tariff income7.

37 ppm, an increase of 11 years.

2%.

In terms of EPC business, the company continued to promote cooperation with state-owned enterprises and central enterprises, and in the first half of the year, it extended strategic cooperation agreements with China Power Construction Investment.

In terms of manufacturing business, the company actively participates in the research and development and production of high-efficiency batteries. At present, the company’s N-type battery has a module capacity of 400MW, and TOPCon battery equipment has been scheduled. It is expected that by 2020, the N-type capacity will exceed 1GW.

Demand for smart meters has begun, and subsequent performance growth can be expected: State Grid’s second batch of smart meter bidding requests in 2018 experienced rapid growth in several months, and the first batch of bidding in 2019 also continued to pick up.

The company won 2 in the first batch of bidding in 2019.

4 ‰, an increase of 62% in ten years, won 3 bids in the regional tenders of the Southern Network.

79 ppm, an annual increase of 57%, we expect the domestic electricity meter business is expected to usher in a rapid growth subsequently.

The company’s overseas electricity meter business has achieved remarkable results, with overseas sales of US $ 28.07 million and orders in hand of US $ 40.72 million.

Estimated the company’s interim report and operating status, we adjusted the company’s forecasted budget revenue for 2019-2021 to zero.

50/0.

59/0.

67 yuan (the original forecast was 0.

51/0.

60/0.

69 yuan), corresponding to a price-earnings ratio of 8.

6/7.

3/6.

5x; maintain Buy rating. The main risks faced by the rating are 无锡夜网 photovoltaic policy risks; photovoltaic power generation supplementary arrears and curtailment risks; domestic electricity meter demand is not up to expectations.

Tonghua Dongbao (600867): Operation has substantially improved, and third-generation insulin approval will welcome the second spring

Tonghua Dongbao (600867): Operation has substantially improved, and third-generation insulin approval will welcome the second spring
Event: The company announced its 2019 Interim Report, which achieved revenue in 2019H114.350,000 yuan, at least -1.96%; net profit attributable to mother 5.320,000 yuan, at least -0.85%; net profit deducted from non-return to mother 5.26 trillion, +1 a year.00%; operating net cash flow 5.780,000 yuan, +27 a year.26%.Earnings per share are 0.26 yuan.Performance was slightly lower than market expectations. Opinion: The apparent performance is the same as the same period of last year, but the operation has substantially improved.The company’s Q1 / Q2 single-quarter revenue in 2019 was 7 respectively.14/7.20 ppm, -1% /-3% for one year; net profit attributable to mother 2.74/2.5.9 billion, -0% /-2% a year.Although the apparent profit growth rate was flat, the operating net cash flow improved significantly and the long-term growth in the first half of the year.26%, mainly due to an increase in sales receipts and a decrease in cash paid for goods purchased; accounts receivable and bills Q1 / Q2 were 6, respectively.02/6.86 ppm, down from 6 in the same period last year.83/7.6.4 billion yuan; after the inventory turnover days and net operating cycle peaked in Q1 2019, Q2 declined.Taken together, the company’s operations are undergoing a substantial improvement. Continue to focus on the main business, insulin resumed steady growth, and chronic disease platform turned a profit.H1 recombinant human insulin APIs and injection products accounted for 81% of operating income.29%, or 11.660,000 yuan, a year-on-year increase of 7% (the income of the same period last year was 10).8.5 billion, accounting for 74% of revenue.14%), to resume steady growth, and the proportion continues to increase. Considering the channel overstocking factor in the same period last year, we expect the actual growth rate of the terminal to be 10?15%; it is estimated that the equipment segment will achieve revenue of about 2 trillion, an annual increase of 20?30%; holding subsidiary of your medical care to achieve a net profit of 346.640,000 yuan, turning losses into profit, it is expected that the expected increase in users will lead to increased sales of blood glucose test strips, needles and other diabetes supplies; Jin Hongji real estate business achieved a net profit of 2236.820,000 yuan, -43% per year (3900 in the same period last year.580,000 yuan).The company’s revenue structure gradually focuses on the main business of diabetes, and it will gradually build a large platform for diabetes in the future. Insulin glargine is about to go on the market, and the scale of diabetes drugs is gradually increasing.In the pipeline developed by the company, the gradually progressing insulin glargine has been in the review stage of the sample inspection center, and it is approved that the second-generation insulin will become the company’s new growth driver; aspart injection, sitagliptin phosphate tablets, Sitagliptin dimethylbisbutyl tablets have been submitted for marketing applications and obtained notice notice in 2019H1, and are expected to be approved for marketing in 2020; insulin aspart 30 injection, insulin aspart 50 injection, liraruPeptide injections, troglitazone APIs and tablets, reglinide tablets, reglinide dimethyl bisphenol tablets are undergoing clinical or BE trials successively; insulin detemir and insulin lispro are in the clinical stageIt is expected to start clinical trials in the near future; the super fast-acting insulin analogue (THDB0206) and the insulin-based mealtime combination (THDB0207), the dulatin peptide injection and the englitazone project are in the preclinical research stage. Profit forecast, forecast and rating and rating company ‘s net amount in the primary insulin market, and the successive approval of glucose-lowering 北京夜网 drugs such as insulin glargine in the research pipeline will open up new growth space; in the future, the company will improve the use of diabetes products.It has a trinity diabetes management platform of “blood glucose” monitoring + medication + chronic disease management.We maintain forecast that the company’s EPS for 19-21 will be zero.49 yuan / 0.60 yuan / 0.74 yuan, the annual growth rate is 20% / 22% / 23%.The current maximum corresponding PE is 29/24/20 times, maintaining the “overweight” level. Risk reminder: Budget manufacturers continue to increase competition and bring about price reduction risks; new product development progress is not up to expectations.

Enjie (002812): Certainty of overseas supply strengthens advantages and resonance stays on top

Enjie (002812): Certainty of overseas supply strengthens advantages and resonance stays on top

Company statusWe participated in the opening ceremony of the first phase of Zhuhai Enjie and the start of the second phase of the project on May 8th, visited the alternative production line 淡水桑拿网 of Zhuhai Enjie and participated in the exchange activities.

Comment on the company’s significant competitive advantage, cut into the global supply growth.

The company believes that its competitive advantage relative to itself is reflected in four aspects: 1) Barriers of scale: The company’s production capacity at the end of 2018 is 1.3 billion square meters, and it is expected to reach 2.8 billion square meters in 2020.Benefit from the growing demand of downstream lithium customers for large quantities of stable raw material supply.

2) Barriers to large customers: The company’s 18-year Chinese market share reached 45% and 1Q19 was nearly 50%. It held large orders from core large customers.

The temporary start and stop of production lines brought by small orders will affect the yield rate and capacity utilization rate, 深圳桑拿网 and the company gradually becomes more dominant.

3) First-mover advantage of foreign core customers: The company has now fully integrated into international customers such as LG Chem, Samsung SDI, Panasonic, etc. The corresponding certification time is up to 2-3 years, forming a first-mover advantage of the supply time window, and it must be scaledAdvantages form a solid barrier, and it is difficult for latecomers to find a share.

4) Technical advantages: The company’s comprehensive yield rate is 78%, compared with the previous average of 53% in the industry, and the total number of inventions and practical patents in hand continues to exceed 270. At the same time, the company has deep accumulation of replacement technologies and masters advanced technologies such as oily PVDF.
At the same time, the company can shorten the production level of the auxiliary materials company by more than 99%, and increase the rate of good products, speed up the vehicle speed, and continuously reduce costs.

The industry is heavy on assets, scale expansion is accelerating, and advantages resonate to increase industry differentiation.

The single is a typical asset-heavy industry, with single-line investment in the industry reaching 400-400 million yuan.

High depreciation will significantly drag down companies that have expanded and have poor yields.

The company has high-quality production capacity. It plans to construct a total of 20 production lines in Zhuhai / Wuxi / Jiangxi in 2019. We expect that the initial production capacity in 2020/2021 will reach 2.8 billion / 4 billion flats.

The company’s current gross profit margin and net profit margin are stable, and the industry’s triple advantage resonance caused by the decline in price competition in 18 years will further accelerate the industry differentiation, and the company is expected to stay at the top.

The absolute price industry supply and demand game, the operating cash flow is affected by the carry-over of bills.

The company believes that the price will not be significantly affected by the formal implementation of the 2H19 subsidy New Deal. The company’s internal power generation utilization rate is more than 80%, supply is tight, overseas customers’ demand continues to increase, and the price is further significantly reduced.

The 18-year operating cash flow was due to the fact that part of the sales proceeds were directly carried over to the equipment supplier in the form of bills and were not included in operating cash flow.

It is estimated to maintain a net profit forecast of 19 / 20e8.

38/11.

6.1 billion.

The current routine corresponds to 19 / 20e 28 / 20x P / E, and maintaining a target price of 71 yuan corresponds to 19 / 20e 40 / 29x P / E and 41.

8% space is recommended.

Risks The production and sales of new energy vehicles fell short of expectations, and the market share of Enjie shares fell short of expectations.

Tasly (600535): Operational adjustments in 2018Q4 affect current performance 2019Q1 performance improvement

Tasly (600535): Operational adjustments in 2018Q4 affect current performance 2019Q1 performance improvement

Investment Highlights Recently, Tasly announced its 2018 annual report, which states that the company has achieved sales revenue of 179.

900,000 yuan, an annual increase of 11.

78%; realized net profit attributable to parent company.

4.5 billion, an increase of 12 in ten years.

25%; net profit after deduction of 13.

4.4 billion, an annual increase of 2.

13%; earnings per share 1.

02 yuan.

The company announced the 2019 first quarter report, reporting that the combined company realized sales revenue of 45.

71 杭州桑拿网 ppm, an increase of 15 in ten years.

66%; Realize net profit attributable to parent company.

4.8 billion, an annual increase of 20.

64%; net profit after deduction 3

9.6 billion, an increase of 10 in ten years.

28%; EPS 0.

Profit forecast of 30 yuan: As a leading company in the domestic Chinese medicine industry, Tasly has fully expanded its market licenses through independent research and development, product introduction, cooperative R & D, and investment in priority market licenses. It continues to develop its innovative capabilities and is gradually transforming into innovative medicines.In the future, the product lines of chemical drugs and biological drugs will be continuously enriched.

In terms of industry, we believe that the existing core varieties will maintain steady growth; Puyouke has entered a period of rapid volume growth and has become a new growth point for the company. It is expected that the industrial sector revenue in the future is expected to maintain stable growth of about 10% -15%.

In terms of commerce, the company will expand its marketing network and continue to grow rapidly. It is expected that the revenue of the commercial sector will maintain a growth rate of more than 10% in the future.

In terms of medium- and long-term layout, the active layout in the field of innovative medicines is expected to support the company’s sustainable and stable development. Tasly Bio is expected to go public in Hong Kong this year and inject new vitality into the scale of capital and scale system.

We adjust the company’s profit forecast and expect the company’s EPS for 2019-2021 to be 1.

17.1.

37, 1.

62 yuan, corresponding to 20, 17, 14 times daily on April 22, 2019, maintaining the “prudent increase” rating caused.

Risk reminder: Puyouke heavy volume is lower than expected; Dandi sales volume changes more than expected; research and development progress of products under development is gradually expected; accounts receivable risk