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Boxi Co., Ltd. (002698): Quarterly fluctuations in performance and short-term epidemic affect project progress and new orders

Boxi Co., Ltd. (002698): Quarterly fluctuations in performance and 杭州桑拿网 short-term epidemic affect project progress and new orders

This report reads: The reasons for the transition in the 19Q4 quarter include project progress, forecast of investment income of subsidiaries, etc. The parent company Q4 maintains rapid growth; the epidemic affects project progress and new orders in the short term, and has a small impact on scale under optimistic conditions.

Investment highlights: Conclusion: The company released a performance forecast, and returns to profit in 20193.

0?
3.

19 billion, an increase of 65?

75%, gets the median of 3.

100 million, slightly lower than our expectations.

According to the performance forecast, the EPS for 2019 is reduced to 0.

3 (-0.

02) Yuan, taking into account the uncertainty of order delivery, reduce 2020?
21 years EPS to 0.

43 (-0.

03), 0.

53 (-0.

03) Yuan, maintaining target price of 11.

81 yuan, 成都桑拿网 increase holdings.

The performance fluctuates normally in the quarter, and new orders guarantee high growth.

4Q19 returns to mother profit 0.

5?0.

6.9 billion, an increase of -2%?
35%, a month-on-month improvement, due to project progress, the expected investment income of subsidiaries, etc. According to our understanding, Q4 of each business of the parent company continued to grow rapidly.

Judging from the new signings, there will be a slight increase in the ten years in 2019. The new signings in 2018 and 19 exceeded the historical high in 2011. Considering the confirmation cycle of about two years, 2020?
21 years of high growth is highly certain.

Traditional business orders are more sustainable, and categories and applications are expanding.

Looking forward to 2020, for traditional businesses, do we think that this round of downstream expansion will continue to at least 2020?
21 years, and the company’s orders mainly come from the old line of technical transformation, better continuity.

In addition, we found that fertilizer, flour, PVC and other powder orders accounted for a large proportion, and the application fields also expanded to agriculture, construction, building materials, food and other fields, and the dependence on petrochemicals has been greatly reduced.

In terms of new products, powder FFS complete equipment relay granules, ferrosilicon, silicon manganese will relay calcium carbide, and the category continues to develop.

The epidemic situation has a short-term impact on project progress and new orders, and under a optimistic situation, it will have a small impact on a series.

The outbreak of this outbreak was due to goods, personnel movement, distribution, technical services and new project bargaining for 1-2 weeks, depending on the resumption of work in the provinces. It will affect the first quarter revenue and new orders.

In the optimistic situation, if the provinces gradually resume work recently, overtime after the epidemic is lifted can be repeated and the impact will be small.

Risk reminder: New product market development is not up to expectations, and downstream investment is shifting precipitously.