Depth * Company * Guoguang (002749): Mixed performance and continued growth can still be expected

The company released its 2018 annual report and achieved net profit attributable to mothers in 20182.

350,000 yuan, an increase of 26 in ten years.

6%, in line with expectations.

The company issued a profit distribution plan and planned to distribute a cash dividend of 2 for every 10 shares.

3 yuan (including tax) and 7 additional shares.

Maintain BUY rating.

The main points of the support level The company’s profits have grown steadily, but there are concerns.

The company achieved operating income in 20188.

65 ppm, an increase of 17 in ten years.

37%; net profit attributable to mother 2.

350,000 yuan, an increase of 26 in ten years.

6%; net profit after deduction to mother 1.

61 ppm, a decrease of 10 per year.

83%.

In 2018, when the supply of original medicines was extremely tight, the company’s revenue continued to grow steadily through strategies such as strengthening technical marketing and expanding package sales, which is indeed commendable.

However, it must be recognized that the company’s stable production has been greatly affected by the tight supply of crude drugs and rising prices. The gross profit margin has also been significantly squeezed. The gross profit margins of pesticides and fertilizers have fallen.

53 and 2.

79 units.

In addition, the one-time investment income of 54 million yuan from the acquisition of Jiangsu Jinghong also affected the company’s profit growth.

Expenses increase in cracks, but worries in the midst of happiness.

Several of the company’s 都市夜网 major expenses have seen potential growth in 2018, leading the suppression of profit growth.

Among them, sales expenses increased by 15.06 million yuan, an increase of 13.

16%; administrative expenses increased by 10.94 million yuan, an increase of 31.

15%; R & D expenses increased by 15.86 million yuan, an increase of 63.

86%.

The increase in management expenses mainly comes from the allocation of fair incentive costs, and the increase in research and development expenses mainly comes from the registration and experiment costs generated by the application for registration certificates.

Management costs are a short-term increase.

R & D expenditure will bring continuous income to the company in the future. Considering the number of registration certificates currently in the application process, the R & D intensity in the next two years will be quite large compared to 2018, and the cost will not increase significantly.

The increase in sales expenses matched the increase in revenue, and even the sales expense ratio fell slightly.

Taken together, the near-term foreseeable cost increases are almost all in 2018, leaving room for future company profit growth.

The foundation for continuous growth has been consolidated, and it is still worth looking forward to in the future.

It is estimated that the extremely tight upstream supply situation this year has exceeded initial expectations, which will bring considerable pressure on the company’s performance growth. It is expected that the company’s earnings per share for 2019-20201.

15 yuan, 1.

47 yuan, corresponding to 18 for PE.

1 times, 14.

2x, maintain BUY rating.

The main risks faced by the rating are that the progress of capacity construction has exceeded expectations, upstream supply is tight, and industry policies have changed abnormally.