Huaxin Cement (600801): Hubei, Southwest China’s Demand for Better 19 Years of Growth Confirmed

Huaxin Cement (6北京桑拿洗浴保健00801): Hubei, Southwest China’s Demand for Better 19 Years of Growth Confirmed

The demand for cement in 19 years is better than in 2018. Under the judgment that the average price of real estate construction investment and infrastructure investment is upward, we judge that the growth rate of FAI’s construction investment in China this year will be in March 2018.

There is a clear rebound based on the 6% growth rate. We judge that the short-term growth rate may increase to double digits. The demand for cement output is expected to resume positive growth, while the growth rate of the same caliber data may increase to 8%., Which means that the sales growth rate of leading companies is expected to increase from about 2% in 18 years to about 8%.

The company’s main production capacity is more than 70%. The market volume and 深圳桑拿网 price are the same. Among the top 5 provinces where the new cement production capacity is located, Hubei, Yunnan, and Chongqing have better demand sides. Both real estate and infrastructure have maintained good growth rates, so they all show volume.Prices are rising at the same time, while Hunan is dragged down by infrastructure investment, demand has improved, and prices are lower than the same period last year. Although demand in Tibet has fallen, due to the internal supply gap in the region, production capacity has been fully utilized, production has continued to increase, but prices have been higher.During the same period last year, the company’s capacity distribution, more than 70% of the region’s volume and price trended upward, and the performance growth in 2019 has a high degree of certainty. Aggregate business is in a period of rapid development.Resources, the annual global aggregate consumption of sand and gravel is about 40 billion tons, and it is the world’s largest producer and consumer each year. The annual aggregate consumption of sand and gravel is about 20 billion tons, which is recovered at a price of 55-60 yuan per ton.The output value has exceeded one trillion yuan.

The company currently has an aggregate capacity of 2,500 tons, and currently has a capacity of 1,300 tons.

Revenue of the company’s aggregate business in 20188.

300 million US dollars, an annual increase of 61%, sales of 1,450 inches, an annual increase of 26%.

It is estimated that from 2019 to 2020, operating revenues will increase by 32.3 billion, 33.8 billion, and 35.2 billion US dollars, respectively.

5%, 4.

8%, 4%; net profit attributable to mothers is 70.

0 billion, 71.

100 million, 73.

400 million, an increase of 35 each year.

1%, 1.

6%, 3.

2%.

The EPS is expected to be 3 in 2019-2021.

34 yuan / share, 3.

39 yuan / share and 3.

50 yuan / share, corresponding PE is 6/6 / 6x.

Based on 7-9 times PE in 19, a reasonable estimate of 23.

38-30.

06 yuan, given a “buy” rating.

Risk prompts a sharp increase in demand and a rise in product prices; production safety risks; exchange rate risks;