Weixing Co., Ltd. (002003): Reduced demand, increased competition, leading excipients, looking for new opportunities

Weixing Co., Ltd. (002003): Reduced demand, increased competition, leading excipients, looking for new opportunities

19H1 income increased by 4% annually.

19H1 company realized revenue13.

15 ppm, an increase of 3 per year.

96%, net profit 1.

66 ‰, a decrease of 8 per year.

16%, gross margin is 39.

92%, a decrease of 1 per year.

06pct, with a net profit of 12.

62%, a decrease of 1 per year.

67 points.

19Q2 income 8.

02 million, a decrease of 4 per year.

85%, net profit 1.

47 trillion, a decrease of 10 a year.

80%, gross margin is 42.

56%, a slight decrease of 0 every year.

06pct, net interest rate is 18.

29%, a decrease of 1 per year.

22 points.

Button revenue continued to grow, and zipper revenue was under pressure.

Benefiting from the easing of the international trade environment in the first quarter, and increasing downstream customers’ orders that were concentrated before the increase was reduced, the revenue growth rate was as high as 22%. In the second quarter, the external environment changed, domestic demand is expected to decrease, and brand customer orders may decrease.

In terms of products, 19H1 zipper revenue was 6.

86 ‰, a decrease of 0 per year.

08%. Zippers, especially metal zippers, are the company ‘s main products. From the perspective of the growth of the subsidiary companies, the sports market is growing faster than other categories of clothing. Sportswear uses nylon and plastic zippers more than metal zippers.Judging the prevailing trend at this stage has affected the growth of zipper business.

The scale of the button business is stable, with 19H1 button income5.

81 ppm, a ten-year increase of 8.


International business is better than domestic business.

19H1 domestic business income 9.

90 ppm, a 10-year increase2.

15%, international business income 3.

25 ppm, an increase of 9 in ten years.

85%, better than domestic business growth.

Temporary domestic market demand is weak, and instead of overseas measures, high-level preferential countries have attracted garment companies to shift, creating operating pressure on supporting domestic auxiliary materials companies.

The company’s international export business can meet the demand for accessories of overseas garment factories. The long-term growth rate of international revenue in 19H1 is faster than the transitional growth rate in 2018H1 and 201南京夜网8 (3.

35%, -0.

51%) significantly improved.

We believe that the company can use the Bangladesh park as a base and its core products as the entry point to deeply explore overseas markets. Product structure changes and gross profit margin decreases.

The company’s overall gross profit margin dropped by 1 in 19H1.

06pct to 39.

92%, of which the gross profit margin of zippers decreased by 3.

54 points to 35.

25%, the zipper business income is under pressure, indicating that the market demand is weak, we judge that the situation is not good, the sales unit price may have concessions, resulting in a reduction in gross profit margin.

19H1 button gross margin increased by 1.

94 points to 45.

83%, the company’s button business advantage continued to expand.

19H1 net interest rate decreased by 1.

67 points to 12.

62%, mainly due to the increase in expense ratio, of which sales expenses increased by 1.

05pct to 9.

39%, the market is fiercely competitive. In order to maintain scale expansion, the sales business unit has been expanded.

Management + R & D Expenses13.

62%, increasing by 0 every year.

20pct, financial expenses cost 0.

44%, an increase of 0 every year.

12pct, basically maintain the advantages of upgrading and expanding the main business, and the military industry business remains stable.

As a leader in auxiliary materials, the company continues to maintain its technological advantages in research and development, and can provide customers with “tailor-made” integrated auxiliary material solutions. At the same time, it has established an international marketing and service system that radiates 50+ countries and regions around the world, becoming Adidas and Nike., Armani and other well-known clothing brand partners, we expect the main business of accessories is expected to achieve steady growth.

As the Beidou system is in the process of technological upgrade, the order delivery in the 19H1 Zhongjie era continues to alternate, and the revenue in 19H1 Zhongjie era is 68.

770,000 yuan (+282.

08%), 2018 basic income1.

US $ 200 million. Generally speaking, the proportion of revenue in the first half of the year is small, and the growth rate does not have any reference. The gradual growth still depends on the order delivery in the second half of the year.

Profit forecast and estimation.

We expect the company’s net profit to be 3 in 19 and 20 respectively.

65, 4.

18 million, as of the closing price of 2019/8/16 corresponding to the price-earnings ratio of 13, 11X, given the company 13-14X PE in 2019, corresponding to a reasonable value range 6.


73 yuan, maintain “Neutral” rating.

risk warning.

Order loss risk, capacity expansion is not up to expectations.

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