UFIDA (600588): The maturity of cloud products continues to verify that the public cloud share is trying to increase

UFIDA (600588): The maturity of cloud products continues to verify that the public cloud share is trying to increase

According to the company ‘s official micro-revelation, BMW and UFIDA have recently reached a major project cooperation. UFIDA will help BMW build a new digital intelligent marketing service system and provide BMW and its dealers with more comprehensive information technology support in the Chinese market, including sales management., After-sale management, financial accounting, system integration, cloud services and other complete digital marketing modules, to achieve a comprehensive digital intelligence of the marketing management system, to support the continuous growth of future business.

  Cloud products continued to obtain major customer orders, defeating foreign breakthroughs and highlighting product strength. Early in 2020, UFIDA acquired cloud services such as cloud, marketing cloud, and financial ledger, and successively obtained major customer orders. Part of the bidding process defeated SAP, Oracle and other important overseas competitors.Some of the company’s cloud products have caught up overseas in terms of maturity, experience, and domestic fit.

The cooperation with Huawei and the development of the domestic information innovation market will promote the reorganization of enterprise management software 合肥夜网 and help the company to obtain more large orders.

The company maintains the R & D and promotion of cloud services and other strategic businesses, continuously releases new platforms and new products, and maintains alternation in low-code development, cloud-native architecture, and China-Taiwan architecture.


The 0 platform supports a complete product architecture and rich cloud service solutions for large and medium-sized enterprises, paving the way for deep expansion of users in 2020 and beyond.

UFIDA’s accumulated R & D investment for many years is the main source of its cloud product improvement, and it has been continuously growing through R & D, trial and error, sales, and feedback.

Since the shutdown of the traditional NC software version in the second half of 2019 and the vigorous development of NC Cloud 杭州桑拿网 hybrid cloud solutions, UFIDA cloud services have been continuously improved from the internal management of enterprises to the external connection and collaboration.Private enterprise orders will maintain rapid growth in cloud service revenue in the next two years.

  Further adjust the organizational structure, the proportion of public cloud is expected to continue to increase in UF in 2019, further adjust the organizational structure, re-divide the cloud division and software division, based on the principle of “cloud first, partner first, platform first”, and increaseExpenditure on public cloud builds the foundation for the overall transition of the company’s future architecture.

The launch of YonSuite, a cloud-native architecture SaaS product for growth enterprises in 2019, strengthens the output of public cloud products to small and medium-sized enterprises and has the potential for rapid replication and expansion.

It is expected that the proportion of public cloud in cloud revenue will increase significantly in 2020.

  The cloud service module continues to improve, and the cloud native architecture supports and gradually develops into 2019. The company releases a series of vertical products such as UFIDA Cloud IoT services, security and environmental protection services, logistics services, energy services, manufacturing cloud services, etc.Committed to providing enterprises with integrated and interconnected NC Cloud intelligent manufacturing solutions.

The recently launched manufacturing cloud-equipment service is based on a new generation of cloud original architecture and provides a SaaS service model. Through on-site installation and delivery, IoT Internet of Things services, operational data monitoring, intelligent diagnostic forecasting, after-sales service and other comprehensive closed-loop management and data precipitation, integrated AI, Intelligent algorithm capabilities to help enterprises achieve real-time management and control of the equipment’s entire life cycle.

At the same time, it has opened up interconnections among equipment manufacturers, owners, service providers, logistics and other parties, extended and integrated the downstream industry chain, and built a social service ecosystem.

Driven by the continuous optimization on the Iuap platform and the introduction of new application services, UFIDA products have been gradually polished, especially in large and medium-sized enterprises to promote and expand their competitive advantages.

  UFIDA upholds 3.

Strategy 0, committed to becoming an ecological builder in the era of corporate Internet, based on the accumulation of technology and know-how from customers in the enterprise-level service industry for more than 20 years, combined with open platforms to launch cloud services.

We are optimistic about the company’s competitive advantages and growth prospects in the enterprise-level service market. Based on the accumulation of services to large and medium-sized enterprises, the cloud business is supported by stronger growth.

With the increase in the proportion of cloud business, the company’s financial indicators such as accounts received in advance and operating cash flow have shown an upward trend, and the quality of profits has improved.

In 2018, UFIDA’s operating net cash flow was approximately 2 billion (43% year-on-year), corresponding to 39 times the static PCF.

It is expected that the company’s cash flow will maintain a steady growth, which will be 23 trillion and 30 trillion in 2019-2020, respectively, and the corresponding PCF will be 46x and 35x.

At the same time, in combination with the segment assessment method, we believe that the company has long-term investment value and maintain a “Buy” rating.

Tianzhan Technology (688003) New Share Analysis: Leading Machine Vision Technology Company

Tianzhan Technology (688003) New Share Analysis: Leading Machine Vision Technology Company

Leading points of investment in domestic machine vision industry: The company takes machine vision as its core technology and focuses on serving customers in the industrial field.

The company’s business mainly includes precision measuring instruments, intelligent testing equipment, intelligent manufacturing systems and unmanned logistics vehicles.

The actual controller of the company is a PhD from Beijing Institute of Technology. He once worked at Microsoft Research Asia. He is an expert in the field of artificial intelligence and machine vision, and has extensive scientific research and product development management experience.

  Cut into the Apple industry chain and create high-end intelligent testing equipment: the company’s precision measuring instruments, intelligent testing equipment and other products can achieve international advanced similar products import substitution.

The company’s operating income from 2016 to 2018 was 1.

800 million to 5.

1 trillion, with a compound annual growth rate of 68%; net profit attributable to mothers increased from 31.49 million yuan to 94.47 million yuan, with a compound annual growth rate of about 73%.

Relying on R & D advantages and improving product competitiveness, the company cut into the Apple industry chain. By 2018, the contribution of the Apple industry chain performance accounted for 76% of the company’s total revenue.


The company is actively expanding its business in the automotive, photovoltaic semiconductor, and warehousing and logistics industries, seeking product diversification.

  R & D builds the company’s core competitiveness: The company is expanding its R & D expansion efforts to build a wide moat.

In 2018, the company had 286 R & D personnel, accounting for 36% of the total number of employees; R & D expenses were 79.6 million yuan, accounting for 15% of revenue.

7%, a similar company at a relatively high level.

In terms of the traditional precision measuring instrument business, the company has achieved accuracy of (0.

3 + L / 800) micron, at the international advanced level of similar products.

In terms of intelligent detection equipment with the largest proportion of revenue, the accuracy and speed of the combined intelligent detection equipment in the field of consumer electronics are comparable to the technical indicators of international advanced counterparts Hennecke, which can achieve import substitution.

  By 2018, the market share in consumer electronics machine vision and battery machine vision are about 17 respectively.

2%, 15.


The current import substitution of the machine vision industry, referring to the progress of fiber laser import substitution since 2016, the import substitution of the machine vision industry has promoted the rapid increase of the market share of Tianzhun Technology.

At the same time, the company’s existing plant is difficult to meet business expansion, and the raised projects will effectively expand the company’s production capacity.

The company expects to increase the company’s annual sales income after the investment projects are fully reached.

500 million US dollars, about 89% of the company’s revenue in 2018; it is expected to increase annual net profit after tax of 70.22 million yuan, about 74% of the company’s net profit attributable to its mother in 2018.

  Investment suggestion: We expect the company’s operating income for 2019-2021 to be 6, respectively.

9.5 billion, 9.

5.8 billion, 12.

5.6 billion yuan, with a net profit of 1.

1.6 billion, 1.

4.9 billion, 1.

8.7 billion.

Compared with the comparable companies PE and PS, the combined company’s performance growth expectations, we think a reasonable estimate is in the range of 3.2 billion to 3.9 billion US dollars, if the total share capital after issuance1.

Estimated 9.4 billion shares, the company’s reasonable interest range is 16.


1 Yuan.

  Risk reminder: the process of import substitution 南京夜网 or meeting increasing market competition will lead to a decline in profitability; the concentration of large customers and the decline in sales of Apple products will cause the company’s revenue to fall; the trade friction between China and the United States will cause the consumer electronics industry chain to transfer risks from domestic sources.

Shiji Information (002153): Three Questions and Three Answers to Overseas Cloud Transformation (Part Two)

Shiji Information (002153): Three Questions and Three Answers to Overseas Cloud Transformation (Part Two)
Recent situation of the company We have recently communicated with investors in the research and roadshow of Shiji Information. It is worthwhile for investors to pay attention to the opportunities and risks of Shiji Information in 2020.Our Air Force has released a report in June 2018, “Nine Questions Overseas Cloud Transformation-Hotel on the cloud is approaching, Shiji is trying to reach the world.” After that, we found that there are currently three issues that investors are focusing on. Comment on whether Shiji is competitive with giants / startups globally?At the product level, the company’s core system is based on a cloud-native architecture, which realizes the microservices of the business and the connection of data. The traditional giants of the earlier hotel industry had an advantage at the product level. In terms of the scale of the sales service network, the company has been in the global scope within 4 years.It has more than 500 people covering four continents, and overseas teams in more than 15 countries. It can fully serve customers in different geographical regions, and it has obvious advantages over earlier startups. Where are the barriers of Shiji?According to the company’s announcement, Shiji Hong Kong’s total borrowings from subsidiaries in 2019.320,000 yuan, mainly used for operators and investment; among traditional giants, overseas hotel listed company Agilysys’s three fees in 20武汉夜生活网18 totaled 0.8.6 billion US dollars, Shiji ‘s spending has exceeded Agilysys; among innovative companies, according to Crunchbase, the average amount of funds raised by companies with a blockage is gradually around 1 billion US dollars, and it is expected that their size will be difficult to support the same magnitude as ShijiThe fragility of self-built hotels, Shiji’s current expenditure accounts for the annual net profit of large overseas hotel groups, and the proportion of operating net cash flow is high. Shiji’s short-, medium- and long-term income space?In the short term, according to the cost rate calculation, the corresponding potential income of Shiji’s current supplementary mass is 1.6 billion?2.900 million US dollars; in the medium term, PMS, POS, big data promotion progress is normal, the revenue volume is expected to reach 27.7 billion yuan; in the long run, the global hotel IT market is 10 billion U.S. dollars, Shiji tries to divide 15-20% of the market share to reach 1.5-20 billion US dollars in revenue. Estimates suggest that we keep our earnings forecast unchanged.Expected net profit for 2019/20205.1.3 billion / 6.1.4 billion, +10 in ten years.7% / 19.6%.The current contradiction corresponds to the 82x / 68x price-earnings ratio for 2019/2020.Maintain Outperform rating and 49.00 yuan target price, corresponding to 102.0 times 2019 P / E and 85.3 times the 2020 price-earnings ratio, 25% more upside than before. Risks (1) The landing of overseas hotel business is less than expected; (2) Oracle has the possibility of non-renewal; (3) Systematic estimation.

New city system’s market value evaporates 31 billion

New city system’s market value evaporates 31 billion

Original title: Opening hard to escape double bond debt!
Shanghai police has informed that the chairman of Xincheng Holdings is suspected of molesting a 9-year-old girl!
More than a hundred heavy warehouse funds have stepped on the mines and issued bonds amounting to 31 billion yuan Source: The brokerage China’s blue bottom announcement and listed company announcements are here!
  Immediately, Xincheng also issued the “Announcement on the Change of the Company’s Chairman”. The announcement showed that the actual controller and chairman of the company, Mr. Wang Zhenhua, was criminally detained for personal reasons. The company elected director and president, Mr. Wang Xiaosong, as the company’s second board of directors.long.

  This is true of previous news reports. According to media reports, Wang, chairman of the listed company Xincheng Holdings, was taken in Shanghai for compulsory measures on January 1 for allegedly molesting a 9-year-old girl.
This will put pressure on the stock and bond trends of the three listed companies in the New City Department.
  According to relevant data, Xincheng Holdings has about 7.
700 million shares, accounting for 34% of the total share capital, of which, Fortune Development Group Co., Ltd. has pledged 7.
0.6 billion shares, which holds 13.
7.8 billion shares, with a pledge of 51.
25%; Changzhou Derun Consulting Management Co., Ltd. has pledged 65.2 million shares and held 1.
3.8 billion shares, pledged 47.
In addition, the pledgers involved CITIC Trust, Shanghai Haitong Securities Asset Management, Shanghai International Trust, Huatai Securities (Shanghai) Asset Management, Huabao Trust, Haitong Securities, Guangfa Securities Asset Management (Guangdong), etc.
  The announcement of the chairman’s alleged indecent assault of a 9-year-old girl with a blue background officially announced Wang Moumou’s suspected crime.
  At 15:00 on July 3, a news screen swept the circle of friends.
Xinmin Evening News reported that Wang, chairman of the listed company Xincheng Holdings, was taken in Shanghai on January 1 for allegedly molesting a 9-year-old girl.
In response to the chairman’s alleged indecent assault on a young girl, Xincheng Holdings said to the media that the current situation of the company is the same as that of the outside world, and executives of the company are also convening a meeting to study the relevant situation. The company’s internal operations are normal and details will be announced to the public.
  It is reported that the crime occurred in the afternoon of June 29, at a five-star hotel in Wanhangdu Road.
After being molested, the girl called her mother in Jiangsu and cried. The mother came to Shanghai to call the police, and Wang was immediately taken a coercive measure.
At present, the girl has been inspected for injuries, with a laceration in her vagina, causing minor injuries.
  Zhou, the woman who brought the girl to the hotel, has also arrived.
Zhou is 49 years old and is from Xuzhou, Jiangsu.
According to her confession, she brought two girls to the hotel on the day of the incident, one was 9 years old, and the other was 12 years old.
The mother of the two girls is a friend of Zhou.
Zhou lied about taking the two girls to Shanghai Disneyland to play and bringing them from Jiangsu to Shanghai.
On the same day, Wang committed a crime against a 9-year-old girl and later paid Zhou a cash of 10,000 yuan.
  Subsequently, the Putuo police in Shanghai issued a police briefing. At about 22:00 on June 30, 2019, the Putuo police in Shanghai took Ms. Wang’s alarm and said that her daughter was brought by her friend Zhou Moumou (female, 49 years old, from Jiangsu) to her hometown in Jiangsu.He stayed in a hotel in Shanghai and his daughter was molested by a man in the room.
After receiving the report, the police attached great importance to it and quickly carried out related work.
On the afternoon of July 1, the suspect Wang Mou (male, 57 years old, from Jiangsu) went to the public security organ for investigation under police work.
On the evening of July 2, the suspect Zhou Moumou surrendered to the public security organs.
At present, the suspects Wang Moumou and Zhou Moumou have been detained by Putuo police for criminal indecency, and the case is under further investigation.
  新城控股发布更换董事长的公告,公告中提到新城控股于 2019 年7月3日接到上海市公安局普陀分局通知,公司实际控制人、董事长王振华先生因个人原因被刑事拘留,公司于The 16th meeting of the Second Board of Directors was held on July 3, 2019.
The board of directors elected Mr. Wang Xiaosong, the director and president of the company, as the chairman of the second board of directors of the company. Mr. Wang Zhenhua will continue to serve as the director of the second board of directors of the company.
  Newtown Holdings’ A-share stock price is worrying. The chairman of Newtown Holdings is Wang Zhenhua, 57 years old, and has announced total assets of more than 300 billion yuan.
He is A-share New City Holdings (601155.
SH), New City Development Holdings (1030.
HK), the actual controller and chairman of the two listed companies, and Xincheng Yue (1755.HK) is a non-executive director. As of the end of 2018, the shareholding ratio reached 73.


  As the A-shares were closed when the news came out, they have not been affected by the news, and they are expected to close up by 3.


As of 4 pm, Xincheng Development Holdings closed down 24.

24%, with a market value of about 150 billion tons.

In addition, its property management company Xincheng Yue (01755).

HK) fell 23.

72%, the market value evaporates 16.

700 million feet.

New Town Development Holdings’ US dollar debt due in 2023 hit a record decline.

  According to market analysts, referring to the decline of H shares, I am afraid that the selling pressure of A shares on the opening Thursday is not small.

The three listed companies, Wang Zhenhua, have a stock market value of over 80 billion yuan.

  The current public opinion has been verbal about Wang Zhenhua’s case, and investors have boasted that they “stepped on the black swan.” Until now, Xincheng Holdings has three A-share shareholders.

80,000 households.

  Corporate bonds are not optimistic. In addition to stocks, New Town Holdings bonds are not optimistic.

  With New City Development Holdings (01030.

HK) is expected to crash late at the end of the day, and the company’s related 2023 US dollar debt also hit its highest drop ever.

  Relevant data show that Newtown Development Holdings currently has a bond stock scale of up to 11.

500 million, a total of only 5 stocks, the scale is less than 500 million.

  In addition to Xincheng Development Holdings, related data show that Xincheng Holdings’ existing bond stock scale is as high as 309.

8.8 billion, with only 28 in stock.

Among the debt-grade bonds, the debt rating of the bonds issued by New City Holdings was changed to the highest grade-AAA grade.

  Of the US $ 30.9 billion in existing bonds, four have more than 2 billion (including US $ 2 billion) of bonds, and the bond balance is 10 trillion?
There are 14 between 2 billion U.S. dollars and 10 with a bond balance of less than 1 billion U.S. dollars. According to the distribution of the size of the bonds to be repaid, there are 600 million tons within 1 year.
There are 202 between 3 years.

4.7 billion yuan, 3?
There are 80 between 5 years.

600 million yuan, 20 over 10 years.

8.1 billion yuan.

  Xincheng Holding said that the company’s actual controller could not perform its duties normally or would harm the interests of the company and investors.

The company ‘s largest shareholder, Rich Domain Development, directly holds more than 60% of the company ‘s total share capital and is in absolute control. The actual controller of the company is Wang Zhenhua.

  Wang Zhenhua himself, the army has been subject to investigation by the Discipline Inspection Commission. Wang Zhenhua has successively served as the director of the workshop of Wujin No. 1 Cotton Spinning Plant in Changzhou, Jiangsu Province, and the director of a weaving mill in Hutang District. He established a new city in 1993.

In 2009, Xincheng relocated its headquarters to Shanghai and gradually moved towards nationalization.

  In 2015, Xincheng Holdings was listed on the A-share market, becoming the first private housing company to successfully achieve a B-to-A conversion.

Since 2015, Xincheng has ushered in an explosion of scale and has become one of the housing enterprises that has been rising at a speed of several times in the past. In the past two years, its compound growth rate has reached 99%.

  Xincheng Holdings Group’s official website mentioned that the group is headquartered in Shanghai and has experienced rapid development for 26 years. It has become a comprehensive real estate group involved in residential real estate and commercial real estate. It has ranked among the top 20 in China’s real estate industry for ten consecutive years, and its total assets exceed RMB.290 billion yuan.

Xincheng Holdings’ business model is mainly divided into three major business divisions: residential development, commercial development, and commercial operation management. Its core product is Wuyue Plaza. At present, Xinyue Wuyue Plaza has achieved nearly 60 large cities and more than 70 commercialProject layout.

  Obviously, in 2016, Wang Zhenhua once lost contact briefly.

Xincheng Holdings announced on the evening of January 22, 2016 that the company’s actual controller, chairman Wang Zhenhua, is being investigated by the Changzhou Wujin District Discipline Inspection Commission for personal reasons, and he can participate in the company’s decision on major issues in an appropriate manner.
Company characteristics, the above matters have nothing to do with the company’s operations.

But just half a month later, Wang Zhenhua returned to the company to work normally.

Since then, he continued to fully operate the New City for three years, and Wang Zhenhua resigned as the company’s president in August last year.
His son Wang Xiaosong became the company’s president. According to information, Wang Xiaosong was born in December 1987, graduated from Nanjing University with a major in environmental science, and entered the new city after graduating in 2009. He has been an assistant manager of the engineering department of Shanghai since April 2010.
  Obviously, Wang Zhenhua often talked about social responsibility when he was in office, proclaiming himself a charity.

At the public event of Xincheng Holdings in September 2018, Wang Moumou stated, “Corporate management and corporate social responsibility are unified and inseparable.

For example, once a company is well established, it can increase employment and pay more taxes.

I have been saying that there are three main contributions to society. More support means more employment, more taxes, and more charity.

When asked “how to fulfill social responsibility”, Wang Zhenhua said that in the field of public welfare, the company created a large-scale public welfare brand “Seven-colored Light Plan”, and continued to make efforts in the public welfare fields such as environmental protection and cultural engineering.

By the end of 2018, the company had expanded more than 300 million US dollars in social welfare.

According to the official information of Xincheng Holding Group, the “Seven-colored Light” plan mentioned by Wang Zhenhua is divided into 7 sections including child health, environmental protection, humanitarian assistance, cultural engineering, and sports.

  Public information shows that Wang Zhenhua has won the National May 1st Labor Medal, National Labor Model, Outstanding Private Entrepreneur in Jiangsu Province, Jiangsu Socialist Construction Contribution Award, Shanghai United Front (Working) Advanced Individual, Changzhou Star EnterpriseHome, China Charity Outstanding Contributors and many other awards.

  Will Wang Zhenhua face a potential fine?

  Article 236 of the Criminal 北京夜网 Law indicates that[rape]who rapes a woman by violence, assault or other means shall be sentenced to three to ten years in prison.

The rape of young girls under the age of fourteen is based on rape, and it is a fallacy.

Rape of women, rape of young children with severe consequences can be punished by more than ten years in prison, life imprisonment or death.

  According to Article 237 of the Criminal Law,[compulsory violation of the law, crime of infringement]where violence, infringement or other methods are used to force violation of others or discriminate against women with human rights, the following five fixed-term imprisonment or detention shall be imposed;Those who commit the crime of the preceding paragraph in public or have other serious circumstances shall be sentenced to imprisonment of more than five years; those 天津夜网 who molest children shall be re-offended in accordance with the provisions of the preceding two paragraphs.

  Hundreds of heavy warehouse funds have been involved in mines along with listed companies.

As Xinchengyue has just been listed in November 2018, it has been reporting data for consecutive quarters. At present, there is no public information showing that funds have a heavy position. There are three funds in Xincheng Development Holdings, and Xincheng Holdings is a domestic heavyweight stock of more than 100 publicly-raised funds.

  According to relevant data statistics, as of the end of the first quarter, a total of three funds held a large number of Hong Kong stocks New City Development Holdings, including Harvest Financial Select A, ICBC Credit Suisse Shanghai and Shenzhen A, and ICBC Credit Suisse Shanghai and Shenzhen Select A, each accounting for 5 of the fund’s net worth.

26%, 2.

15%, 1.


The three funds mentioned above all lightened up on New City Development Holdings in the first quarter.

  According to relevant data statistics, as of the end of the first quarter, a total of 132 funds held heavy positions in New City Holdings, of which 44 funds held New City Holdings accounted for more than 5% of the fund’s net worth. China Merchants Shanghai and Shenzhen 300 Real Estate, Golden Eagle Small and Medium Cap Selection, Wells Fargo Financial Real EstateWaiting for the positions of the six funds to exceed 8%, or they will be affected in this event.

  From the perspective of the number of shares held, as of the first quarter of this year, 7 public offerings such as TSE Asset Management and Bank of Communications Schroder held more than 5 million shares in Xincheng Holdings. Among them, TSE Asset Management, Bank of Communications Schroder, Huaxia even boughtEntered into the top ten of New City Holdings, Oriental Red ‘s domestic demand growth capital management plan, Bank of Communications Schroder selected and mixed, Huaxia returns, and Oriental Red No. 8 two-way strategic asset management plan respectively ranked New City Holdings seventh, eight, and nine.Top ten shareholders.

  Regarding whether the company will carry out the position adjustment, the fund company that was interviewed merged and responded that “there is an urgent discussion on the corresponding plan, and it will also depend on whether the listed company of Xincheng Holdings is suspended from trading in the future, and it is not convenient to deal with it too much.

“A related person of a fund company holding shares in Xincheng Holding said,” This is the minimum quantitative issue, and this behavior cannot be tolerated morally or legally!

“A fund company insider disclosed,” specific to a certain type of “black swan” incident, it needs to return to the core issue of the company level.

For example, like the previous Visual China, we are reportedly not involved in the company’s core business internally, so the visual China also rebounded.

Whether the fund company makes an assessment is essentially no problem for the company.

But things like vaccine incidents are directly related to the microcosm of the company.

According to the conventional process, the event of Xincheng Holding will likely announce the size of the listed company tomorrow. After the listed company announces, the fund company will look at the market price tomorrow.

If the company itself has no problem, the price will drop sharply tomorrow, which actually means that the market has absorbed the substitution.

“Xincheng Holdings appeared on the block platform, and Guotai Junan’s first business department received a premium. On July 3, Xincheng Holdings had a block transaction with a total volume of 320,000 shares and a total transaction value of 1401.

60,000 yuan, the transaction price is 43.

8 yuan / share, a premium of 2 from the closing price of the day.


The buyer is Guotai Junan Securities Ningbo Rainbow North Road Securities Sales Department, and the seller is Haitong Securities Ningbo Jiefang North Road Securities Sales Department.

  In the last 3 trading days, 5 major transactions have occurred in Xincheng Holdings.

New rules for refinancing activate mergers and acquisitions restructuring goodwill impairment just over?

New rules for refinancing activate mergers and acquisitions restructuring “goodwill impairment” just over?

Refinancing “unbundling” small and medium-cap technology stocks broke out!

Come to Sina University of Finance and listen to the opening column of the Trading Day Financial Morning Post.

   Original Title: New Regulations on Refinancing Activate M & A and Reorganization. Will “Impairment of Goodwill” just come?

  Worry about impairment of goodwill?

  With the implementation of the new refinancing rules, the growth sector and the GEM extension M & A restructuring logic have been strengthened.

The warming up of mergers and acquisitions has even triggered a new upsurge of mergers and acquisitions, and the issue of goodwill cannot be avoided.

  ”Mergers and acquisitions may have goodwill.

Goodwill will only arise in the course of a business combination.

Reflected in the financial statements, it is the share of the consideration paid by the combining party that exceeds the fair value of the identifiable net assets of the combined party.

“A listed brokerage investment banker said.

  Li Jinlong, general manager of Reagan Fund, told CBN that it is expected that the initial funds will give priority to listed companies with performance or technology, but it does not rule out that the scope of final increase will be expanded.

  With the full disclosure of the 2019 annual report notice, listed companies also ushered in a wave of financial “big shower”.

Data show that GEM listed companies still accrued about 34 billion worth of goodwill impairment.

  Mergers and acquisitions may resume On February 14, the CSRC issued new refinancing rules, and revised the regulatory requirements for refinancing of listed companies.

With the implementation of the Air Force in 2017, the refinancing regulatory indicators for refinancing launched from a harsh environment, the new refinancing regulations have the most obvious relaxation of the refinancing of GEM listed companies.

  Tang Shuangshuang, an analyst at Huaxi Securities, took the textile and apparel industry as an example. The main business of the textile sector is sluggish and the market value is small, but the cash flow is good.

The subject matter of its analysis is divided into two main lines. One is the stocks that have been announced in 2019 and have not yet completed the non-public offering; the other is the stocks with high debt and cash flow pressure.

  ”After the new rules on refinancing, there should be a new round of concentration events in the fixed increase and subsequent mergers and acquisitions.

“Li Jinlong said.

  “No M & A, no goodwill” Usually only when the merger occurs, the difference between the investment cost and the fair value of the combined company ‘s net assets is called goodwill (for example, Company A acquires Company B for 1 billion, ifNet assets of 600 million, the difference between the two is 400 million (goodwill).

With the emergence and increase of mergers and acquisitions, the attendant goodwill risks must be paid attention to.

  A few days ago Dangsheng Technology (300073.

(SZ) announcement, according to the company’s performance forecast, the listed company is expected to separately determine the total amount of bad debt receivables in 2019 is about 2.

98.6 billion.

In addition, it was formed during the acquisition of Zhongding Hi-Tech in 2015.

1.3 billion goodwill accrued 2.

9 trillion impairment, a total of 5 local impairment.

88.6 billion.

  Another GEM company precision forging technology (300258.

(SZ) also announced that after fully deducting Ningbo Electric Control’s goodwill impairment in the fourth quarter of 2019, it is expected to achieve net parental profit1.

7.5 billion to 1.

85 billion, the previous decade 28.

5% to 32.


If 2018 and 2019 do not consider replacing goodwill impairment provisions, gradually realize net profit attributable to mothers.

0.8 billion to 2.

18 billion.

  In 2019, the performance of the GEM was also penetrated by the impairment of assets such as goodwill.Through statistics on the preview content of listed companies, China Everbright Securities Research Institute noted that in 2019 GEM listed companies still accrued about 34 billion in impairment of goodwill, plus impairment of assets such as accounts receivable and inventory, totalingThe scale of asset impairment is about 480 billion yuan, accounting for 70% of the net profit attributable to mothers in 2019.

  As GEM companies substantially withdrawn impairment of assets such as goodwill in 2018, the scale of GEM impairment losses in 2019 also decreased, which also caused a change in the growth rate of earnings.

With the full disclosure of the 2019 annual report notice, listed companies also ushered in a wave of financial “big shower”.

Data show that GEM listed companies still accrued about 34 billion worth of goodwill impairment.
  Goodwill will not be “so big” or even the rising tide of mergers and acquisitions brought about by the new refinancing regulations, but many restructuring mergers and acquisitions and restructuring people believe that goodwill is not a “big problem” under the fixed growth recovery.

  A veteran of mergers and acquisitions restructuring in Shanghai said to First Financial that “goodwill can be concerned, but I don’t think this is a major issue.

“” Dingzhang and mergers and acquisitions are two different things. Only issue financing without mergers and acquisitions has no goodwill.

“The aforementioned investment bankers also said.

  From the statistics of public data, we can see that from the perspective of the growth of goodwill, the GEM bull market that started in 2013 was the initial trigger for goodwill growth, and the 2015 bull market has become a direct catalyst for the explosive growth of goodwill.

The formation of goodwill is inseparable from the outbound mergers and acquisitions of listed companies.

The GEM bull market opened in 2013 was accompanied by a rapid increase in the number of outbound mergers and acquisitions by listed companies.

This wave of mergers and acquisitions peaked in 2015 and 2016.

  Among them, the goodwill of small and medium-sized boards increased from US $ 25.5 billion in 2013 to 380 billion at the end of 2018, an increase of nearly 14 times; the goodwill of GEM increased from 15 billion in 2013 to 270 billion at the end of 2018, an amazing increase.17 times.

  ”In general, goodwill is a problem that occurs only 2-3 years after a merger is completed.

The last wave of goodwill in 2018-2019 was caused by mergers and acquisitions in 2015-2016, especially when the bull market was high.

That is to say, 2014 corresponds to 2017, and 2015 corresponds to 2018. This is the goodwill generated by the previous wave of mergers and acquisitions, and this wave of mergers and acquisitions has not yet begun. The issue of goodwill does not need to be considered so much for the time being.

“The veteran of the Shanghai brokerage merger and reorganization told reporters.

  From the perspective of performance commitment, GEM performance is the most dependent on outbound M & A.

In 2017, the net profit brought by the outbound mergers and acquisitions to the GEM accounted for 37% of the GEM’s net profit, a significant increase of 10% before 2014.

  ”This wave of facts has learned from the previous wave of risks.

The 6-month non-public offering can be financed by mergers and acquisitions or by investment projects.

Mergers and acquisitions of cash by the Securities and Futures Commission will not be able to review. If it is to issue shares to purchase assets, the Securities and Futures Commission will certainly review. The three-party acquisitions with relatively high risks are still subject to stricter audits.

Therefore, this round of mergers and acquisitions will not even be as good as the goodwill risk in the previous round of mergers and acquisitions, because 天津夜网 the CSRC will intentionally control this risk.

“The veteran of the Shanghai brokerage merger and reorganization further told First Financial.

  Moreover, First Financial also understands that there are not many high-quality assets with existing asset securitization, and there are fewer and fewer targets for mergers and acquisitions. At the same time, there are “flickering” reorganizations and other behaviors that have an impact on the psychological level of the market.Therefore, the review of M & A and reorganization by the CSRC has been strictly controlled.

  Incomplete statistics show that 17 of the 102 listed companies’ merger and reorganization applications reviewed by the China Securities Regulatory Commission’s M & A and Reorganization Committee in 2019 were rejected and rejected by 16.


FAW Fuwei (600742) first quarterly report in 2019: slightly negative growth in the first quarter

FAW Fuwei (600742) first quarterly report in 2019: slightly negative growth in the first quarter

Core point of view events: The company released the 2019 first quarter report: the company achieved operating income in the first quarter of 201829.

5.8 billion, a decrease of one year.

26%; net profit attributable to mother 1.

07 million, a decrease of 6 every year.

93%; net profit after deduction to mother 1.

0.6 million yuan, a decrease of 2 each year.


The company’s equity incentive plan completed the first grant of incentive objects: The company completed the first grant of stock options to the incentive objects on April 25, 2019. Except for one incentive object giving up on its own initiative, the company granted 2,280 for the first time to a total of 161 people.

One million stock budgets, exercise price of 13.

04 yuan / share, accounting for 4 of the company’s total share capital.


Our comments on this are as follows: In the first quarter of 2019, the company’s performance slightly overlapped in the short term, and the net profit attributable to the mother company stabilized from the 上海夜网论坛 previous month, and the industry average.

Domestic car sales in the first quarter of 2019 were 637.

240,000 vehicles, a decrease of 11 per year.

32%, the company’s performance was dragged down by the industry, and operating income was slightly replaced every year.

26%, net profit attributable to mothers is slightly broken down every year6.

93%; compared with the previous month, as the domestic auto industry ‘s sales growth in the second half of 2018 changed from positive to negative, the company ‘s net profit attributable to mothers decreased quarter by quarter: 2018 Q2 – 2018 Q4 net profit attributable to mothers were 1.

4.3 billion, 1.

3 billion, 1.

07 million yuan, the net profit attributable to the mother in Q1 2019 is 1.

07 trillion, began to stabilize.

70% of the company’s revenue comes from FAW-Volkswagen, which will benefit significantly from FAW-Volkswagen’s new car cycle.

In 2018, 70% of the company’s one-year operating income was derived from FAW-Volkswagen. FAW-Volkswagen started a super new car cycle in 2018. In 2018-2020, it launched 16 new and replacement models (including 8 new SUVs) and launched a newThe “Jetta” sub-brand (including 3 new vehicles) has entered the low-end market, and the company will fully enjoy the FAW-Volkswagen new car cycle industry chain dividend.

We forecast FAW-Volkswagen’s annual sales in 2019 to reach 225.

80,000 vehicles, an increase of 10 in ten years.

8%, annual sales in 2020 will reach 270.

90,000 vehicles, an annual increase of 20.


Equity incentive plan completed the first reward, fully motivated employees, and further promoted mixed reform.

The company completed the first grant of a mixed-equity equity incentive plan and awarded 2,480 to incentive objects.

One million stock budgets, about 4% of the company’s total share capital.

49%, incentives include one company director, three senior management personnel and 157 core management personnel, a total of 161 people, the grant price is 13.

04 yuan.

As a traditional state-owned enterprise, the company now provides large-scale and wide-ranging fair incentives which will definitely improve the work enthusiasm of the company’s employees, and the company’s mixed reform will be further promoted.

Investment suggestion: The company has significantly benefited from FAW-Volkswagen’s new car cycle. The large-scale and large-scale equity incentive plan was announced for the first time, followed by mixed ownership reform. The profit margin is likely to increase. Conservatively estimate FAW Fuwei’s total revenue in 2019-2021.Followed by 158.

45, 197.

72, 215.

91 trillion, with a growth rate of 16.45%, 24.

78%, 9.

20%, net profit attributable to mother in turn is 5.

91, 7.

61, 8.

62 trillion, with a growth rate of 19 in turn.

4%, 28.

9%, 13.

3%, the current market value is 66.

20 ppm, corresponding to PE in order of 11.

2, 8.

7, 7.

7 times, maintaining the “recommended” level.

Risk reminders: ① the risk of rising raw material prices; ② FAW-Volkswagen’s production capacity is less than expected; ③ the domestic automobile market is sluggish.

Conch Cement (600585): Profit hits record high and faucet continues to expand

Conch Cement (600585): Profit hits record high and faucet continues to expand

Note: Unless otherwise specified, the currency unit here is converted into RMB.

  The company’s 2018 revenue was 1284.

03 billion, previously +70.

5%; net profit attributable to mother 298.

14 trillion, +88 a year.

05%; net profit after deduction is +111.

81% may send out a golden bonus of 1.

69 yuan.

  The trading 苏州桑拿网 platform helped promote the rapid increase of market share. The self-produced and sales volume was affected by the environmental protection error peak: the company’s comprehensive sales volume of cement clinker in 20183.

68 billion tons, a sharp increase previously24.

77%, far faster than the industry growth rate, of which the sales volume of the trading platform is about 7,000 euros, which has increased 12 times every ten years, which has helped the company to expand and increase rapidly, showing the company’s market share and control as a leader; in addition, its own production and sales volume2.

9.8 billion tons, an increase of 2 in ten years.

69%, slightly lower than the national cement output growth rate of 3% in 2018, which was mainly affected by the core and core markets of East China last year. Environmental impact 返回码: 500 网站打不开?重查 peaks and restrictions on production were severely affected. We estimate that the company ‘s self-production and sales of Q4 can only be slightly reduced (last yearIn November and December, the monthly output of cement in Anhui Province was -7 per second.

34%, -4.


  Multiple favorable factors resonate, and the profit hits a record high: the company’s self-products ton revenue in 2018 was about 328 yuan, an increase of 81 yuan, of which Q4 ton revenue reached about 364 yuan, a substantial increase of about 37 yuan, mainly due to the peak season demandNew start-ups are pulling ahead of expectations, overlapping the environmental protection peaks of the Yangtze River Delta in autumn and winter, overcoming the supply of energy-saving and power-restriction, multiple favorable factors resonate, and pushing prices in East China to a record high.

The company’s profit has therefore reached the best level in history. In 2018, the gross profit per ton of self-products was about 154 yuan, which was increased by about 66 yuan each time. Among them, the gross profit was estimated to be about 180 yuan in Q4 tons.103 yuan, an increase of about 50 yuan per year.

  Cash cows with continuously optimized capital structure, expanding internally and externally to maintain expansion: In 2018, the company’s net operating cash flow was 360.

59 billion, an increase of 107 previously.

68%; cash in hand at the end of the period was 37.6 billion, interest-bearing debt was only 13.5 billion, and the asset-liability ratio continued to fall to 22.

15%; financial expenses turned negative to -4.

7.4 billion; abundant cash flow also lays the foundation for the company’s internal and external expansion of the continuous expansion. It reports that the merged company acquired Guangying Cement, overseas projects continue to progress in an orderly manner, and aggressively expand the aggregate business; the company plans to have capital in 2019Expenditure is about 10 billion yuan. It is expected to increase cement production capacity by about 400 replacements (excluding M & A) and aggregate production capacity at 1,700.

As there are still too many positive expansion expectations, the company’s dividend rate for 2018 is 30.

04% has fallen, but the dividend yield is still close to 4 at the latest closing price.


  Investment suggestion: The company has obvious advantages as a leader, leading the industry in profit, and maintaining continuous expansion through internal and external expansion; and industry demand can still be transformed, and the supply layout is good. The company’s EPS is expected to be 5 in 2019-2021.



79 yuan, corresponding to the latest closing price of PE respectively 6.



21 times, PB is 1.



15 times; based on historical estimates over the past three years (average PB1.

62 times), considering the company’s ROE profit center moved up in the past three years, giving the company 1.

85 times PB, quantified net assets in 201924.

63 yuan, corresponding to a reasonable value of 45.55 yuan / share; the latest closing price of H shares is 5 relative to A shares.

27% premium, so based on the current A and H share premium ratio and exchange rate calculation, the reasonable value of H shares is 56.

09 made / share.

Maintain “Buy” rating on A and H shares.

  Risk warning: demand worsens severely, the industry’s supplementary supply exceeds expectations, and collaborative shutdowns rupture

Haitian Flavor (603288): Steady operation in a single quarter, scale advantage, profitability

Haitian Flavor (603288): Steady operation in a single quarter, scale advantage, profitability

The event company released the third quarter of 2019 report. The company achieved revenue of 148 in the first three quarters.

24 ppm, an increase of 16 in ten years.

62%; net profit attributable to mother 38.

35 ppm, an increase of 22 in ten years.

48%; net profit after deduction is 36.

38 ppm, an increase of 23 in ten years.


The company achieved revenue of 46 in the third quarter.

64 ppm, an increase of 16 in ten years.

85%; realized net profit attributable to mother 10.

85 ppm, an increase of 22 in ten years.

84%; net profit after deduction to non-returned mothers10

380,000 yuan, an increase of 31 in ten years.


Brief comment on the steady growth of Q3 seasoning sauce. The company’s revenue growth in the first three quarters of this year was extremely stable. The average quarterly revenue growth rate remained between 16% and 17%, of which the 16% revenue growth target is expected to be achieved.

In terms of products, the company’s soy sauce achieved revenue of 86 in the first three quarters.

78 ppm, an increase of 13 in ten years.

76%, accounting for 58% of revenue.


Soy sauce Q3 achieved revenue of 26 in a single season.

90 ppm, a ten-year increase of 14.

08%, an increase of 0 from 2019H1.

47 points.

The company’s oyster sauce is in a period of rapid growth, with revenue of 25 in the first three quarters.

45 ppm, an increase of 20 in ten years.

33%, accounting for 17% of revenue.


Oyster sauce Q3 single-quarter revenue reached 8.

300 million, the previous growth rate was the highest of the three major products, was 18.


Seasoning revenue reached 17 in the first three quarters.

65 ppm, a relatively expected growth rate of 9.

21%, but in Q3, the growth rate of seasoning sauce increased to 13.

80%, an increase of 6 from H1 in 2019.

3 pct, indicating that the company’s adjustment of the sauce market channel in 2018 gradually reflects.

From a structural point of view, soy sauce accounted for 57% of revenue in Q3.

68%, down by 1 from H1.

25pct, the proportion of non-sauce products increased. Channels have developed steadily, and the growth in the central and western regions has grown rapidly. From the perspective of channels, the company’s offline channels achieved revenue of 138 in the first three quarters.

4.0 billion, accounting for 93% of revenue.

12%, an annual increase of 14.


Online channels currently account for a relatively low share, only 1 of revenue.

90%, the first three quarters increased by 34.


Q3 single season online channel growth slowed down, replacing 13.

17%, while the growth rate of offline channels increased to 16.

79%, an increase of 2 from 2019H1.

89 points.

In terms of different regions, the company’s revenue distribution is relatively even. In the previous three quarters, the northern region had the highest revenue, accounting for 24 of the revenue.

67%, 20% in the east, south, and middle.

25%, 19.

86%, 19.

23%, with the lowest ratio in the western region at 11.


In Q3 single season, the growth rate is in the western region, with an annual growth rate of 30.

68%, up from 6 in 2019H1.

At 75pct, the single-quarter growth improvement in the central / south region is relatively penetrated, with multiple growth rates of 23 respectively.

41% / 14.

51%, an increase of 4 over H1.

62 points / 3.

30pct, the east / north growth rate is stable, the previous season’s growth rate was 14 respectively.

97% / 9.

54%, similar to H1 levels, respectively +0.

82 / -0.

81 points.

In the first three quarters of this year, the number of company dealers reached 5,640, a net increase of 693.

Among them, the increase in dealers was mainly in the northern region, with a net increase of 283, and the central and western regions were also the key areas to strengthen.

At the end of Q3, the company’s funds received in advance fell by 40.

11%, mainly due to the dealer’s advance preparation and payment at the end of last year.

The cost control effect is significant, and the company’s gross profit margin has been lowered with the increase in net interest rate. The gross profit margin in the first three quarters was 44.

51%, a decrease of 1 per year.

96pct, Q3 single quarter gross margin was 43.

75%, the year-on-year decrease has narrowed to 1.

33 points.

The decline in gross profit margin was mainly caused by changes in the product structure and fluctuations in raw material prices: 1) The gross profit margin of soy sauce was the highest in the company’s products, reaching more than 50%, and the faster-growing oyster sauce gross profit margin decreased, about 41%; 2) The cost of soybeans, packaging materials and additives in the company’s raw materials has increased. The price of soybeans has increased since the second quarter of this 返回码: 404 网站打不开?重查 year. Although there has been a certain fall in the third quarter, it is still higher than the same period of the previous year.

Judging from the performance of net interest rate, the company maintained its profitability improvement under the increase of cost rate caused by external factors, not only because the company controlled fees properly, but also highlighted the company’s scale advantage as an industry leader.

Judging from the rates, Q3’s single season sales / management / R & D rates are 12 respectively.86% / 1.

91% / 3.

37%, the obvious decrease is the sales and R & D expense ratios, which decreased by 2 respectively.

82, 1.

29pct, the company ‘s sales rate level has decreased this year, and the company ‘s channels are highly efficient under optimization. Furthermore, this year, some dealers chose to pick 天津夜网 up the product, which saved some freight costs.

Management expenses increased by 78% due to the budget increase, but the overall rate was still at a reduced level.

Profit forecast: As the leader of condiment, the company will gradually expand its capacity and supplement its channel network in the future to increase its city share.

The company is expected to achieve revenue of 198 in 2019-2021.

49, 230.

21, 265.

2.5 billion, net profit attributable to mother 52.

57, 62.

90, 74.

19 trillion, the corresponding EPS is 1.

95, 2.

33, 2.

75 yuan.

Risk reminders: food safety risks, raw material price rise risks, exchange rate risks, cumulative expansion is less than expected, risk of decline in the industry’s prosperity, etc.

Shun Xin Agricultural (000860) Annual Report: High Growth in Liquor Business

Shun Xin Agricultural (000860) Annual Report: High Growth in Liquor Business
In 2018, the company achieved operating income of 120.74 ppm, a ten-year increase2.90%; net profit attributable to mother 7.440,000 yuan, 南京桑拿网 an increase of 69 in ten years.78%, realizing net profit after deductions.930,000 yuan, an increase of 129 in ten years.59%. Main point: Liquor sector maintains high growth.The average growth of the company’s revenue and net profit comes from the rapid growth of the liquor sector. In 2018, the revenue of the liquor sector was 92.78 ppm, an increase of 43 in ten years.82%.Liquor sales 62.10,000 kiloliters, an increase of 44 in ten years.66%, the ton price decreased by 0.6%, mainly due to the promotion of foreign markets to Niu Er mainly caused a slight fluctuation in the price of wine. The slaughter plate is greatly affected by swine fever.Revenue from slaughter sector in 201823.68 ppm, a decrease of 20 per year.23%, revenue accounted for 19.62%, down 5 from last year.68 points. The property sector is expected to bottom out and rebound.Affected by factors such as policies and insufficient demand, the real estate sector business continued to increase in 2018.As the company’s Hainan and Xiapotun projects gradually recognize revenue, profitability is expected to improve from 2019.The company’s gross profit margin in 2018 was 39.96%, a significant increase every year 6.04 points.The company’s net profit margin in 2018 was 6.03%, an increase of 2 a year.26 points, profitability has been significantly improved. Profit forecast and investment rating.We think the company’s revenue for 2019-2021 is 148.21, 171.25, and 190.27 trillion, a growth rate of 22.77%, 15.55% and 11.10%; net profit attributable to mother is 11.62, 14.20 and 15.97 ppm, an increase of 56.18%, 22.20% and 12.46%; corresponding EPS is 2.04, 2.49 and 2.80 yuan.The current company PE is 24.25 times, the company as a low-end liquor leader, the liquor business is expected to improve space, while the pork and real estate sectors are expected to turn a profit, we give the company 30 times PE, with a target price of 61.20 yuan.

Jinhe Industry (002597): Divided in the sweetener field, the oligarch Dingyuan project opens up growth space

Jinhe Industry (002597): Divided in the sweetener field, the oligarch Dingyuan project opens up growth space
Steady growth of sweetener leader Jinhe Industry is a domestic sweetener leader. Until February 2019, it was the world’s largest oligomer of formamide and maltol. After the expansion of sucralose, it has ranked first in the world.two.The company’s main functional sweetener is expected to accelerate the replacement of sucrose, the market space is broad, and the company’s integrated industrial chain production, the cost advantage is significant.The medium and long term Dingyuan project will open up the company’s growth space, and the proposed employee incentives for share repurchase will also help improve governance.We expect the company’s EPS for 2019-2021 to be 1.60, 1.92, 2.35 yuan, the first coverage given “overweight” rating.  Demand for sugar substitutes is stable, new types of sweeteners are accelerating growth and the number of people suffering from diabetes is rising, consumers’ awareness of health is increasing, and governments of various countries have imposed sugar taxes. Sucrose and low-generation sweeteners such as saccharin and cyclamate will be replaced.Speed up replacement.New sweeteners such as acesulfame and sucralose 杭州桑拿 have high safety and outstanding price-to-price ratio advantages. At present, beverage giants represented by Pepsi and Coca-Cola have successively introduced drinks using new sweeteners.According to China Chemical Information Weekly, it is estimated that by 2021, the consumption of acesulfame and sucralose in China, Western Europe, Japan, the United States, and Canada will reach zero.66, 0.Nominal 88, CAGR (2016-2021) were 3.4%, 6.5%.  Multi-dispersed oligarchs with significant cost advantages in the integration of the industrial chain The company currently has the capacity of Ansaimi.2Every year / year, occupying about 60% of the global market share, replaced by oligarchs, and the company’s self-supplied key diketene, sulfur trioxide, supply and demand for acesulfame tightened, and the price center rose.The company’s sucralose 1500 tons / year technical transformation project has already ranked second in the world after the commissioning of the company, and the company continues to improve its technology. The raw material cost industry is on average 10% -25% lower.Beetle maltol has been impacted by new players, but the company plans to expand production to maintain its leading position, and the industry pattern may remain stable in the short term.Based on the research and development of retractable products, the company continued to reduce costs through refined production. According to our calculations, the cost of products such as acesulfame and silyl maltol decreased by nearly 40% from 2011 to 2016.  The Dingyuan project opens up long-term growth space, and the share repurchase share plan is intended to encourage employees. In November 2017, the company announced that it plans to invest in Dingyuan22.The production line of furfural, cresol maltol, crotonaldehyde, and potassium sorbate will be built at USD 5 trillion. The first phase of the project will be put into operation in the second half of 2019. The company expects to increase its annual revenue by 8.1 ‰, total profit 2.600 million US dollars, the company’s industrial chain further extended to the field of food additives, pharmaceutical intermediates.In addition, the company announced on May 11 that it intends to use its own funds of 75 million to 150 million yuan to repurchase shares for employee incentives, with the number of repurchases accounting for 0 of the total share capital.44% -0.87%, which helps to motivate employees and is beneficial to the company’s mid- and long-term development.  For the first time, the company has been given an “overweight” rating. Jinhe Industrial is a domestic sweetener leader. The company’s main sweeteners such as acesulfame and sucralose can promote the replacement of sucrose, and the company’s industrial chain integration has significant cost advantages.In the medium and long term, the Dingyuan project will open up the company’s growth space. The repurchase of shares is intended to be used for employee incentives and will also help improve governance.  We expect the company’s EPS for 2019-2021 to be 1.60, 1.92, 2.35 yuan, the combined company’s estimated level (13 times PE in 2019), giving the company 13-14 times PE in 2019, corresponding to a target price of 20.80-22.40 yuan, the first coverage given to “overweight” rating.  Risk reminder: The risk of the industry structure continues to deteriorate, and new projects are put into production less than expected risks.