Shen Wan Light Industry The company's announcement is expected to return to the mother's net profit of 3.38 billion yuan in 2018, and also announced the acquisition of 100% stake in VersoWickliffeLLC. The company announced 2018 annual results pre-increase notice, in 2018 achieved a net profit of 3.38 billion yuan. 1) Non-operating income from acquisition: Among them, the acquisition of VersoWickliffeLLC 100% equity consideration is lower than the fair value of its identifiable net assets, and the net profit attributable to the mother is about 360 million yuan. 2) Q4 profit growth ratio: After deducting the impact of the acquisition, the company's Q4 realized a net profit of 703 million yuan, an increase of about 15% from Q3. 3) After deducting the consolidated effect, the business grew steadily in 2018: after removing the Nordic Paper and Liansheng Paper (a total contribution of about 600 million yuan). The non-net profit was 2.13 billion yuan, a year-on-year increase of 6.5%. Base paper: Q4 sales increased on a month-on-month basis; external waste clearance, the proportion of usage increased; the profit of Liansheng Paper continued to improve. At the end of 2018Q3, the increase in the stock of raw paper and the increase in the US waste inventory (including the non-entry of the US) increased the company's inventory to 3.396 billion yuan, the Q4 raw paper inventory was digested, and the waste outside the port was gradually cleared. 1) The leading effect appeared, against the trend of the industry, Q4 sales increased. In 2018, affected by the trade friction between China and the United States and the low growth rate of the society, Zhuo Chuang Information showed that the total output of the boxboard corrugated paper industry fell by 8.8%. The company's anti-industry trend, with the leading edge Q4 sales increased, the end of Q3 raw paper inventory gradually digested, by the end of the year, the original paper stock has been reduced to a low level. 2) The external waste clearance will accelerate, and the external waste ratio Q4 will increase. Since May, the domestic customs has implemented 100% unpacking and box inspection on US waste imports. The US waste import and export volume has declined in Q2-Q3, resulting in a decline in the proportion of waste products outside the company's Q3. Q4 pre-purchasing waste is gradually cleared, and the waste paper tariff policy outside the US remains unchanged, and the increase in external waste rate brings Q4 cost improvement. 3) Liansheng Paper's profitability has gradually improved. At the beginning of the year, the company consolidated the paper industry (corresponding to the production capacity of 1.05 million tons of corrugated paperboard). The management efficiency of Liansheng Paper has gradually improved, and the proportion of external waste will also increase quarter by quarter. We expect Liansheng Paper to achieve a profit of 400 million yuan in 2018 and a significant improvement in the second half (250 million) compared with the first half (150 million). Acquisition of 100% equity of VersoWickliffeLLC at a discount of 100%, global integration. 1) The discounted purchase formed 360 million yuan of non-operating income. In September 2018, the company's wholly-owned subsidiary, Zhejiang Shanying's indirect holding subsidiary GlobalWin (60% of the company's shares) completed the acquisition of 100% of VersoWickliffe LLC (referred to as "Phoenix Paper"), the acquisition price of 16 million US dollars. The net assets appraisal value of the acquired company as of September 6, 2018 was approximately 929 million yuan, higher than the acquisition consideration of 819 million yuan. The acquisition, because the acquisition consideration is lower than the identifiable net assets, increased the net profit of the mother to about 360 million yuan (because the company only holds 60% of the purchaser GlobalWin, and involves taxes and fees, so the company's profit is 360 million yuan instead of 8.19 100 million yuan). 2) Layout North American wrapping paper capacity, globalization further. Prior to the acquisition, Phoenix Paper mainly produced and sold pulp and paper products related to cultural papers and has been shut down since November 2015. After the completion of the acquisition, the company will transform the existing equipment of Phoenix Paper and convert it into a packaging paper production line. This will expand the company's global layout to the North American market, and the internationalization strategy will go further. Box board corrugated paper + packaging + special paper multiple power, industry chain integration and international investment continue to advance, low valuation + determine growth, maintain buy. Foreign acquisition of Nordic special paper faucets, European waste paper recyclers, American pulp and paper mills, vertical expansion of the packaging industry chain and pulp and paper integration. Ma'anshan, Haiyan, Hubei, and Fujian bases have fully covered production bases in East China, Southeast China, and Central China. The profitability of the packaging sector through supply chain and operations management is expected to continue to increase. As the acquisition formed non-operating income, we raised the net profit of returning to home in 2018 to 3.38 billion yuan (formerly 3 billion yuan), maintaining a net profit of 3.18 billion yuan and 3.37 billion yuan from 2019-2020, corresponding to EPS. They are 0.74 yuan (formerly 0.66 yuan), 0.70 yuan and 0.74 yuan respectively. The current share price (3.25 yuan/share) corresponds to PE of 4.4 times, 4.7 times and 4.4 times respectively, corresponding to PB only 1.2 times, and maintains buying. This article is posted on this website for the purpose of transmitting more information and does not imply endorsement of its views or confirmation of its description. Article source address: http:// Funiture Bed,Wooden Double Bed,Wooden Bunk Bed,Full Bed Frame With Storage DUOBUY TECHNOLOGY SHANDONG CO., LTD. , https://www.doubuytech.com