Qianjing Garden (603778) Company Comments: Performance recovers as scheduled, business performance trend upwards

Qianjing Garden (603778) Company Comments: Performance recovers as scheduled, business performance trend upwards

The company recently announced the results report for the first half of 2019, and realized operating income during the reporting period1.

550,000 yuan, -3 lower than the same period last year.

36%; the net profit of non-return to mothers was RMB 13.59 million, an increase of 15 over the same period last year.


Opinions are as follows: Revenue has picked up quarter by quarter, and the operating growth trend has been upward. Although the company’s operating income declined in the first half of the year3.

36%, but from a single quarter point of view, there has been an upward trend. Orders signed in the second half of last year have gradually entered the implementation phase, and the single quarter growth rate in the first quarter was -27.

70%, and the single quarter growth rate in the second quarter has rebounded to 7.


Benefiting from the increase in the company’s high gross margin level and the increase in asset impairment losses, the company’s net profit after deducting non-return to motherhood increased compared with last year.

97%, although it is down from the previous quarter (due to slight fluctuations in the profit base in the first quarter), we still believe that the company’s operations continue to improve, and the operating trend is upward.

Due to the deteriorating operating environment last year, the company accrued additional impairment losses at the end of the year, and the year’s environment gradually improved. No further accrual is expected, and the growth rate in the next two quarters still has room for improvement.

In addition, compared with other garden companies in the sub-industry, the company’s performance has been very good. At present, the asset-liability ratio is also at the industry level, and the company’s balance sheet expansion space still exists.

The Kaleidoscope Greenhouse at the World Pavilion China Pavilion will bring a good advertising effect to the company. The company implements a differentiated development strategy and follows the development path of 深圳桑拿网 distinctive advantages. The core technology accumulated in the construction of the greenhouse landscape, construction capabilities, technical barriers, and occupationMarket segments.

The company undertook the bidding for the greenhouse landscape project of the World Garden Kaleidoscope Project of the Beijing World Garden Expo and the first stage of the greening project of the public greening landscape of the World Horticultural Expo Park, namely the greenhouse construction of the key pavilion China Pavilion.

The greenhouse landscape has 1,000 kinds of precious plants, ending the Dragon Boat Festival holiday, and the number of people visiting the garden in one and a half months has exceeded 2 million.

The company’s kaleidoscope project is expected to bring positive advertising effects to the company and bring certain convenience 杭州夜网 to future new order acceptance.

Under the current economic prospects, private enterprises have successively hired strategic investors. According to the statistics we constructed in the report “Semi-annual Investment Strategy of the Industry: Policy Probability Increases, Infrastructure Chains Are Arranged at the Right Time”, the construction industry has 13 companies during the year.Part of the equity has been transferred, and this is generally common in the garden industry, with 6 garden companies transferring equity.

As deleveraging continues, these private enterprises transfer part of their equity to state-owned enterprises or state-owned platforms, and gradually support in financing.

In the background of garden industry companies’ dating and investment, there is also a certain imagination in the company’s current increase plan.

Investment advice The company’s announcement of the performance report is basically in line with our expectations, and the current operating income has picked up quarter by quarter; the World Garden Fair currently being held has also brought good advertising effects to the company.

In summary, the company’s performance trend has been confirmed, and it is expected that the future operation will continue to improve.

We maintain the EPS for 2019-2021 to 0.

20 yuan, 0.

24, 0.

The forecast of 30 yuan / share corresponds to PE of 24, 20, and 16 times, maintaining the “overweight” rating and 6 for the company.

4 yuan target price.

Risk reminder: the acceleration of the growth of fixed asset investment is accelerating, the competition in the industry is intensifying, the risk of industry repayments, and the project is not progressing as expected