Lu Thai A (000726): Vietnam’s steady expansion of production capacity is expected to drive performance growth back in the future

Lu Thai A (000726): Vietnam’s steady expansion of production capacity is expected to drive performance growth back in the future
The company’s revenue grew steadily, and hedging expectations affected net profit, which basically met expectations.1) Operating income of 68 in 18 years.Eight ten percent, an increase of seven per year.3%; net profit attributable to mother 8.100 million, down 3 a year.5%.Mainly due to the decline in domestic demand, orders fell short of expectations in the fourth quarter, hedging losses of approximately 65 million yuan and accrued asset impairment losses of approximately 57.53 million yuan.2) 18Q4 achieved operating income of 18.6 ppm, a ten-year increase of 4.5%.4Q18 achieved net profit attributable to mother 2.200 million, down 9 a year.1%, deducting non-net profit 2.100 million, a year down 0.8%. Gross profit margin declined slightly, expenses were well controlled during the period, net interest margin declined slightly, and asset quality was generally high and good.1) Gross profit margin decreased by 0 in 18 years.82pct, the expense rate is stable.The company’s 18-year gross profit margin decreased by 0 compared with the same period last year.82pct to 29.33%, mainly due to the increase in the price of long-staple cotton in the first half of 2018, resulting in significant cost increases.The 18-year management expense ratio (including R & D expenses) decreased by 0 compared with the same period last year.3 points to 9.9%, the sales expense ratio increased by 0 compared with the same period last year.05pct to 2.3%.Net interest rate decreased by 1 from the same period last year.3pct to 12.5%.2) Healthy asset quality and better cash flow.The 18-year inventory was 21 trillion, which was basically the same as the beginning of the year.The company’s 18-year accrued inventory price loss was about 42 million yuan, an increase of 16.77 million yuan over the same period last year.Accounts receivable and bills receivable for 18 years increased earlier by RMB 75.91 million to RMB 5.500 million.The 18-year operating cash flow net increased by 4 trillion to 14 trillion over the same period of the previous year, and the cash flow continued to improve. The company’s overseas revenue accounts for over 60%. Domestic, Southeast Asian, European and American countries have become three-legged.1) The company’s domestic sales reached 25 in 18 years.4%, an annual increase of 8%, accounting for about 37% of total income; overseas income reached 43.400 million, accounting for 63%, of which the company’s own brand fabric exports accounted for more than 70%.2) In overseas regions, Southeast Asia ‘s revenue exceeds 2 billion yuan, increasing by 1 every year.7%, accounting for about 29% of total revenue; European and American revenues12.2 ‰, an increase of 17% in ten years, accounting for 17 of total revenue.8%. Vietnam ‘s production capacity has been steadily released, and its overseas layout has continued to improve.1) Vietnam’s second phase is gradually put into production, with an orderly release of production capacity.Vietnam Spinning Phase II 7.The 60,000 spindle spinning production line has all been put into production, and the 3 million high-end jerseys of the garment factory in the second phase have also been put into production in August 18th.The company’s current total production capacity in Vietnam is expected to be about 13.60,000 spindles of yarn, 30 million meters of yarn-dyed fabric, 9 million pieces of jersey.2) Continue to increase investment in Vietnam, and Vietnam’s production capacity continues to increase.The construction of the main plant of the second phase of Vietnam ‘s 40 million meter yarn-dyed fabric expansion project is completed. The first batch of equipment installation will begin in the first quarter of 1919, and it is expected to be put into production in 19-20.At the same time, the company invested and constructed 14 in Xining, Vietnam at the end of 2018.The 40,000-spindle spinning and 3,000-spinning spinning project will improve the Vietnamese yarn-dyed fabric industrial chain and achieve a balanced production capacity and facilities.3) The advantages of Vietnam’s favorable inflation and favorable trading environment are obvious. The net profit rate of Vietnamese factories is relatively high.Lu Thai (Vietnam) has achieved a net profit of 77 million yuan in 18 years. It is estimated that the net profit rate will be about 5 四川耍耍网 in domestic factories.Gradually increasing the proportion of Vietnam’s production capacity in the future will obviously drive the company’s overall net interest rate upward. The company is the leader in domestic yarn-dyed fabrics. Vietnam ‘s production capacity is steadily advancing, and future performance is expected to resume growth, maintaining the “overweight” level.The company’s industry leaders are generally solid and have bargaining power.Vietnam’s production capacity is advancing steadily, and the proportion of overseas production is expected to reach more than 1/3 in the future.At the same time, the company’s dividends are stable. The 18-year dividend ratio has reached 52%, and the dividend rate is nearly 5%.Taking into account the growth of domestic downstream 武汉夜网论坛 demand, the full profit forecast is lowered, and the net profit attributable to mothers is expected to be 9/9 in 19-21.9/10.900 million (was 9).5/10.4 ppm), corresponding to EPS.98/1.08/1.18 yuan, PE is 11/10/9 times, maintaining the “overweight” level.