Lianmei Holdings (600167): Clean heating steadily develops high-speed rail media icing on the cake

Lianmei Holdings (600167): Clean heating steadily develops high-speed rail media icing on the cake
This report reads: The company is a domestic leader in clean heating, leading profitability, and further expanding its scale. The second main business, Zhaoxun Media, has broad space for development, and its performance is expected to continue to grow rapidly. Investment Highlights: Investment Suggestion: Target Price 13.69 yuan, for the first time, give “overweight” rating.It is expected that EPS for 2019-2021 will be 0.68/0.83/0.98 yuan, comprehensive PE and PB estimation results, target price 13.69 yuan, for the first time, give “overweight” rating. Different understanding: The market believes that the high gross profit margin of the company’s heating business is difficult to sustain. We believe that the company’s high gross profit margin is sustainable due to the company’s efficient coal burning technology and refined management.The company’s heating area still has room for growth. The profitability of heating is leading, and the growth is endogenous.1) Endogenous: The company’s heating business is mainly located in Shenyang City. As of 2018, the company’s heating area is 62 million square meters, and the total planned heating area has reached 152.32 million square meters.In addition to the internal expansion of the Shenyang region, the company is also actively promoting the extension layout. In May 2019, the company announced its intention to acquire a 66% stake in Shandong Heze Fulin Thermal Power. This is the first time the company has realized the industrial steam sector after integrating the Group’s clean heating assets in 16 years.The off-site expansion of the company is expected to accelerate the off-site replication of clean heating based on capital and technological advantages. The high-speed rail media has vast space and Zhaoxun Media has outstanding performance.In November 2018, the company acquired 100% equity of Zhaoxun Media.Zhaoxun Media is the first professional company operating digital media in military railway passenger stations in China, which has transformed into a 南京桑拿网 rapid growth of high-speed rail passenger flow, and advertisers have been increasing the speed of high-speed rail media transmission.As of the end of 2018, Zhaoxun Media has achieved a national advertising media network covering 29 provinces / autonomous regions / municipalities, more than 500 contracted locations, and over 6,000 digital media resources. It has the largest number of media resources in the domestic railway digital media industry.One of the most extensive media service providers.Zhaoxun Media achieved net profit attributable to mothers in 20181.590,000 yuan, an increase of 26 in ten years.92%, future performance is expected to continue high growth. Risk factors: coal prices grow faster than expected, advertising industry growth is slower than expected