Evergreen Shares (002391): Interim report meets expectations and intends to repurchase shares for equity incentive
The annual profit of 2019H1 increased by 13%. Evergreen, which was in line with market expectations, issued an interim report on August 20, and the company’s revenue in 2019H1 was 17500 million, an increase of 17 in ten years.7%, net profit 1.95 trillion, an increase of 12 in ten years.9%, performance is in line with expectations, press 5.With the latest equity calculation of 3.9 billion shares, the corresponding EPS is 0.36 yuan.Among them, the revenue of 2019Q2 was 10.1 trillion, an increase of 20 in ten years.0%, net profit 1.24 ppm, an increase of 16 in ten years.4%.The company also announced that it plans to repurchase 11-22 million shares for the equity incentive plan. We expect the company’s EPS for 2019-2021 to be 0.74/0.92/1.02 yuan, maintaining the “overweight” level. The increase in sales led to the growth in performance. With the launch of 1,600 tons of butyl ether urea in May 19, and the production of 300 tons of indoxacarb in 18Q2, 200 tons of fluconazole continued to increase./ Fungicide revenue increased 23% / 10% / 40% to 7 per year.7/8.3/1.0 million yuan, the company’s export value increased by 19% to 10 in ten years.800 million.According to Zhongnong Lihua, the price of the main product of imidacloprid / sulfasulfuron in the H1 company fell by 15% / 9% to 16.3/12.30,000 yuan, but the dimetrione / butyl ether urea / fluriconazole / tricyclazole continued to increase by 11% / 16% / 28% / 17%, which partially replaced the impact of falling prices of the main product.Reported that the first-tier company’s comprehensive gross margin was downgraded in ten years.6pct to 24.7%, during which the rate of expenses fell to 0.6 points to 10.5%.The company increased the provision for bad debts to generate a credit impairment loss of 21.35 million yuan, which caused a certain impact on performance. The recent trend of pesticide products is generally weak. Due to the weak demand of the industry as a whole, the recent trend of pesticide prices is weak. According to Zhongnong Lihua, the company ‘s main product, imidacloprid / toluenid / flumizone, was the latest price on August 18.5/15.0/11.80,000 yuan / ton, down 9% / 16% / 2% respectively compared with the beginning of May; in the case of small varieties, the latest prices of tricyclazole / methoprene / butyl ether urea were 9 respectively.3/18.0/16.0 million yuan / ton, are flat with prices in early May. The convertible bond investment project has been steadily advancing, which is expected to help the long-term growth of performance. The company issued convertible bonds to raise funds in April 20199.1.4 billion US dollars, with Nantong Changqing as the mainstay to build 6 projects including “6,000 tons of dicamba”, of which “5,000 tons of hydroxylamine hydrochloride project” has entered the commissioning stage and is expected to be put into production in 19Q4, which is expected to enhance the company’s raw material security.The company expects that the remaining fund-raising projects will be completed by 2021, which will contribute a total of 15 annual revenue after reaching production.4.6 billion, net profit 2.10,000 yuan. The shares to be repurchased are used for equity incentive companies. At the same time, the company intends to use its own funds to buy back shares for equity incentive plans. The repurchase price does not exceed 11.86 yuan / share, the 成都桑拿网 repurchase volume is 11-22 million shares, calculated based on the upper limit of the repurchase scale, corresponding to a total amount of 1.3-2.600 million.If the repurchase and subsequent equity incentives are implemented smoothly, the company’s long-term incentive mechanism will be improved, and the participation and enthusiasm of core employees will be fully mobilized, which will benefit the company’s long-term development. Maintaining the “overweight” rating We expect the company’s EPS for 2019-2021 to be 0 respectively.74/0.92/1.RMB 02, based on the comparable company’s estimated level (average 14 times PE in 2019), considering the weak trend of the company’s main products, giving the company 12-14 times PE in 2019, corresponding to a target price of 8.88-10.36 yuan (original value 9).62-11.10 yuan), maintaining the 重庆耍耍网 “overweight” level. Risk reminder: Downstream demand does not meet expected risks, and core technology is at risk of confidentiality.