Double Arrow (002381): Three quarterly reports continue to be strong, new capacity is about to be put into production

Double Arrow (002381): Three quarterly reports continue to be strong, new capacity is about to be put into production

Results announcement: The company announced that it is expected to return to net profit for the first three quarters of 20191.

8-2.

0 billion, 50% growth in ten years?
70%; third quarter profit was 5,796.

1?
8202.

60,000, an increase of 21 a year.

9%?
72.

5%.

The effect of high-end conveyor is remarkable: with reference to the conveyor belt price index, the price of the rubber conveyor belt industry has been relatively stable since 2017.

The rise in the industry’s prosperity is mainly due to the clearing of backward production capacity and the withdrawal of inferior products from the market.

As a leader in rubber conveyor belts, the company fully leverages its advantages in scale, technology and management, adjusts its product structure, increases the proportion of high-end products, and further increases its product gross profit margin.

New conveyor belt products were launched strongly, and new production capacity ushered in production in the fourth quarter: the company launched ceramic conveyor belts, RopeCon cableway conveyor belts, aramid duct conveyor belts, overall steel mesh anti-tearing conveyor belts, and overall fabric impact resistant conveyor belts in the first half of the year.7 new conveyor belt products, impact-resistant conveyor belt and ultra-wear-resistant conveyor belt, further expand and meet customers’ requirements for conveyor belts in various 杭州桑拿 industries, improve the short life and high energy consumption of traditional conveyor belts in the industry, and long-distance transportationThe advantages of taking the alternative to truck transportation have been highlighted, and breakthrough performance growth has been achieved.

The company currently has a capacity of approximately 40 million square meters and full orders.

In the fourth quarter, the company’s 10 million square meters is expected to be put into production, with a capacity increase of about 25%, which will continue to contribute to the 2020 performance growth.

Further promoted the development of integrated medical care and nutrition, and the profit model gradually became clear: the company announced that the subsidiary Heji Company had signed the “Entrusted Operation Contract for the Zhouquan Town Senior Care Service Center” with the People’s Government of Zhouquan Town of Tongxiang, Hosting the Zhouquan Town Senior Care Center.

The headquarters of Heji Company established Tongxiang Heji Nursing Home Co., Ltd. to promote the development of integrated medical care.

The company promotes external expansion with an asset-light pension model, and continues to expand market development efforts on the basis of ensuring high-quality and stable service quality.

Investment advice: The company is expected to have EPS 0 in 2019-2021.

61/0.

73/0.

82 yuan, maintain Buy-A rating, 6-month target price of 12.

2 yuan, corresponding to PE 20/16/15 times.

Risk warning: raw material prices fluctuate, market competition intensifies, and production projects are less than expected.