Liberal Arts Garden (002775): Financial expenses increased significantly, cash flow improved significantly

Liberal Arts Garden (002775): Financial expenses increased significantly, cash flow improved significantly

Liberal Arts Garden released its 2018 annual report: the company achieved operating income in 201828.

4.9 billion, an annual increase of 11.

06%; realized net profit attributable to mother 2.

50 ppm, a ten-year increase3.

27%.

In terms of revenue, the company’s Q1, Q2, Q3, and Q4 achieved operating income of 4, respectively.

1.4 billion, 9.

6.6 billion, 7.

4.北京夜网 5 billion, 7.

24 trillion, an increase of 43 over the same period last year.

41%, 12.

17%, -4.

48%, 13.

93%, affected by the deterioration of the financing environment of private enterprises, the single-quarter revenue in the third quarter decreased, and the fourth quarter recovered. In terms of business, the company’s ecological engineering contributed 96% of the company’s total revenue.

13%.

The company achieved a comprehensive gross profit margin of 19 in 2018.

30%, an increase of 0 compared with the same period last year.

53 points.

The company’s net margin is 8.

76%, the ranking dropped 0 in 2017.

77pct. The increase in gross profit margin and the increase in net profit margin is primarily due to the increase in expense ratio and the proportion of asset impairment losses.

In 2018, the company’s expenses including R & D expenses accounted for 2.

95%, an increase of 1 over the same period last year.

07pct, mainly due to the rapid rise in financing costs of private enterprises in 2018, leading to a substantial increase in financial expenses.

The company’s net operating cash flow for one year in 2018 was zero.

11 yuan, a significant improvement before 2017, mainly due to the decline in the cash-to-cash ratio.

From the perspective of the cash-to-cash ratio, the company realized a cash-to-cash ratio in 2018, with a cash-to-cash ratio of 62.

09%, 55.

82%, up by 0 compared with the same period last year.

32pct, -9.

53 points.

The sharp decline in the cash-to-cash ratio was the initial improvement in cash flow conditions.

Profit forecast: We expect the company’s EPS for 2019-2021 to be 0.

60 yuan, 0.

69 yuan, 0.

78 yuan, the PE corresponding 杭州夜网to the closing price on April 22, 2019 is 14.

5 times, 12.

5 times, 11.0 times, maintaining the level of “prudent overweight”.

Risk reminder: land reserve risk, PPP industry policy adjustment risk, new single unit fails to meet expectations, project financing and orders fall below expectations, and cash flow conditions deteriorate