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Shanghai Xiba (603200): Operating business steadily improves equipment integration and rapid growth

Shanghai Xiba (603200): Operating business steadily improves equipment integration and rapid growth

Event: The company released its 2018 annual report, and achieved revenue 4 in 18 years.

1.4 billion, an annual increase of 37.

45%, net profit attributable to mother 0.

80ppm, an annual increase of 39.

25%, performance growth in line with expectations.

A cash dividend of 3 is proposed for every 10 shares.

3 yuan (including tax), 3 bonus shares will be distributed for every 10 shares.


Investment highlights: Steady growth in operations, rapid growth in equipment business The company’s 18 years of steady growth in operations-related businesses, chemical sales and services, and water treatment system operation management revenues increased by 13% and 12% respectively, and equipment-related businesses achieved rapid growthThe integration of water treatment equipment, the sales and installation of medicinal equipment increased by 230% and 78% respectively. The rapid growth of the water treatment equipment integration business was mainly due to the 18-year progress of the company’s Leting EPC project.

In terms of different industries, except for the pulp and paper industry, which lost revenue due to the termination of the Hainan Jinhai Pulp and Paper Water Treatment Project contract without renewal, the other industries achieved positive growth. Among them, the petrochemical, automobile manufacturing, and steel metallurgy industry revenues increased by 14%, 11% and 114%, and the revenue of the civilian industry also increased by 9%.

Mainly due to the gradual improvement of the continuous recovery of the industry, the overall operation of the petrochemical, steel, automobile and other industries is 成都桑拿网 better, and the volume of contracts signed by the company’s industrial business has increased.

Gross profit margin decreased slightly, and management expenses increased due to equity incentives. The company’s overall gross profit margin declined slightly.

12pct to 38.

20%, in which the operation and management of water treatment systems, the sales and service of chemicals, and the integrated gross margin of water treatment equipment are slightly smaller by 6 respectively.

12pct, 1.

62 points and above 1.

22pct, sales and installation of dosing equipment As the company further strengthened cost control, gross profit margin increased by 15.

83pct to 33.


The company’s sales expense ratio and financial expense ratio continued to decline, and the management expense ratio (including research and development expenses) increased slightly.

35 points to 18.

09%, mainly due to the company’s 18-year recognition of equity incentive costs of 1349.

530,000 yuan, at the same time increased investment in research and development projects, focusing on the development of water treatment agents, metal composites, oily sludge, electrolytic fillers and other methods of preparation and application research and development.

The company’s 18-year net profit margin increased slightly by 0.

32pct to 19.

43%, maintaining sustainable profitability.

Major shareholders’ increase in shareholding is completed, showing confidence in the company’s future development. As of February 26, 2019, the controlling shareholder of the company, Mr. Wang Wei and his spouse, Ms. Weng Huilan, increased their holdings of 489,700 shares in the company through centralized bidding transactions, accounting for the company’s total share capital.0.

65%, the average price of holdings is 31.

80 yuan / share, the increase of 1557.

450,000, showing the confidence of the actual controller in the future development of the company.

Maintaining the “Recommended” level for 19 years. Water treatment equipment integration is still an important growth point for the company, and the proportion of the third-party operating market transformed into industrial water treatment has gradually increased. The company’s operating business has continued to grow, and the company has continued to expand its new business.Such as hazardous waste, treatment of black and odorous water bodies, etc., the company is expected to achieve net profit attributable to mothers in 19-21.

10, 1.

40, 1.

6.3 billion yuan, with EPS of 1.

47 yuan, 1.

86 yuan, 2.

18 yuan, corresponding to PE is 27, 21, 18 times, maintaining the “recommended” level.

Risks suggest that gross profit margin is falling, market advancement is slower than expected, project advancement is lower than expected, policy risk, financial investment risk