Tower Group (002233) 2018 Annual Report Comments: Supply and demand pattern is good, high profit, high dividends, low valuations

The company’s performance increased by 139 in 2018.

0%, EPS1.

RMB 45 On January 12, 2018, the company realized operating income of 66.

30,000 yuan, an increase of 45.

3%, net profit attributable to shareholders of listed companies.

2 trillion, with an increase of 139.

0%, budget benefit 1.

45 yuan; the company’s revenue in the fourth quarter was 21.

1 trillion, with an increase of 38.

5%, net profit attributable to shareholders of listed companies4.

7 trillion, with an increase of 119.


Profit distribution plan: 4 for every 10 shares.

3 yuan cash dividend (including tax), the cash dividend rate is as high as 58.


The sales scale, operating performance and dividend rate of the first-tier companies are reported to reach record highs.

Volume and price are rising, and the company with the best historical profitability report has a comprehensive gross profit margin of 40.

4%, an increase of 10 every 17 years.

8 units; sales rate, management rate and financial rate are 1.

6%, 4.

9%, -0.

2%, 0 per year.

4, 0.

9, 0.

2 averages, period rate 6.

3%, 1 year 17 years down.

4 units.

The company’s comprehensive gross profit margin in the fourth quarter was 38.

5%, an increase of 6 every 17 years.

9 units; sales rate, management rate and financial rate are 2.

0%, 7.

9%, -0.

2%, a decade change of -0.

3, 0 and 0.

2 digits, period rate is 9.

7%, a decrease of 0 every 17 years.

1 unit.

In 18 years, the company’s cement sales reached a ceiling of 1795, an 南宁桑拿 increase of 15 per year.7%, mainly contributed by the first phase of the Wenfu serial port line that was put into production at the end of 17 years.

In addition, benefiting from stricter environmental protection, coordinated peak production by large enterprises and the suspension of Xijiang in the fourth quarter of the season, the price of cement in South China rose by 18 years.

9%, the company’s profitability improved to the historical best level, net sales margin reached 26.


The Hong Kong-Zhuhai-Macao Greater Bay Area merges with the revitalization of the eastern Guangdong countryside, and the regional supply and demand pattern is better.
On the power supply side, except for the completion of the second phase of the Tower Wenfu access line project, which was completed and put into operation at the end of 19 years, there will be no other supplementary production capacity in Guangdong Province in the future. In 19 years, the environmental protection governance in the southern region will gradually increase.The pattern will also continue.

As the cement leader in the Pearl River Delta region, the company’s market share is expected to further increase.

Profit forecast and investment recommendations The internal cement supply and demand pattern in the region is improving, and the company’s business mix business is growing rapidly. The Wenfu clinker insertion line project will continue to contribute to product sales growth, and high profit levels will continue.

In addition, the company’s dividend yield is as high as 7%, which is estimated to have a safety margin.

Maintain the company’s 19-20 year earnings forecast EPS 1.

96, 2.

16 yuan, plus EPS 2 for the 21-year profit forecast.

38 yuan, maintaining a target price of 14.

00 yuan corresponds to about 7 times the PE level in 2019, with a “Buy” rating.

Risk Warning: The demand performance is less than expected, and the risk of a sharp rise in prices of raw materials and coal.