Tangshan Port (601000): Cost reduction and expense control drive 3Q performance growth by 15%
3Q results slightly exceeded our expectations for the third quarter results announced by Tangshan Port: operating income of 25.
60 trillion yuan, an annual reduction of 6%, a 10% increase in costs, so the gross profit margin fell by three percentage points; net profit attributable to the parent company.
USD 7.3 billion, an annual growth of 15%, corresponding to a profit of RMB 0.
06 yuan, slightly more than we expected, mainly due to cost reduction and expense control to drive 3Q performance growth.
Revenue and cost decrease slightly We believe that it may be partly due to the active control of trade business volume. The decrease in cost exceeding the decrease in revenue may benefit from changes in the structure of tons of goods (higher gross margin business growth decreases): the first three quartersThe company’s bulk cargo tungsten increased by 3%, of which ore and coal increased by 5% and 6%, respectively, while steel and other goods fell by 12% and decreased by 10%.
On the expense side, in the third quarter, the company’s management expenses decreased by 23% each year, and every 40% reduction in financial expenses, a high base in the same period last year.
Development Trends The coal business is expected to continue to benefit from the increase brought by transit to iron.
Driven by environmental protection requirements, the company’s specialized berths (professional coal berths) and the advantages of railway gathering ports have been highlighted. Under the overall weak coal demand (the first three quarters of the Daqin Line ‘s coal transportation decreased by 5%) enjoyThe increase in structural changes (the company ‘s coal explosion increased by 6% in the first three quarters). At the same time, the company took a stake in the Tanggang Railway and enjoyed the revenue from the railway port.(The decrease was 5% before the third quarter, and the trend has improved. The first three quarters have continued to grow).
At the same time, we also noticed that the company’s ore and steel cargo volume may be affected by 北京夜生活网 factors such as weaker downstream demand, environmental protection and limited production, and there is still some pressure.
The container business is still in the incubation period: the gross profit margin of the container business in the first half of this year was -1.
37%, still waiting for the scale to continue to grow in order to reach the breakeven point.
Earnings Forecasts and Estimates Due to the slightly better-than-expected performance, we raised our 2019/2020 net profit forecast by 5% / 4% to 17.
6 billion / 18.
5.4 billion yuan, corresponding to a growth rate of 9% / 5% in 2019 and 2020 (considering that the net profit in the fourth quarter of last year was a high base, our earnings forecast implies a flat 4Q19 longer).
The current sustainable correspondence is 8/2019/2020.
6 times / 8.
1x price-earnings ratio.
Maintain Neutral rating and 3.
A target price of 00 yuan corresponds to 10.
6 times 2019 P / E ratio and 10.
0 times 2020 price-earnings ratio, compared with the recent inclusion of 18.
The risk explosion growth rate was lower than expected, and the loading and unloading rate dropped.