On March 23, Jianye Chemical (00148) and Jianye Laminate (01888) held its 2017 annual results conference in Hong Kong. According to the performance data released earlier, in 2017, Jianye Chemical achieved a turnover of 43.159 billion Hong Kong dollars. The growth rate was 20%, and the basic net profit (excluding non-recurring items) was 5.589 billion yuan, a year-on-year increase of 70%. Net book value was 5.593 billion yuan, an increase of 11% year-on-year, basic earnings per share was 5.358 yuan, and it is proposed to distribute 100 Hong Kong cents per share.
Jianye Laminate (01888) achieved a turnover of approximately HK$18.243 billion in 2017, a year-on-year increase of 17%. The company's net profit attributable to holders was HK$3.735 billion, a year-on-year increase of 92%. Basic earnings per share was HK$1.225. The final dividend was 52.6 HK cents and the dividend payout ratio rose to 70%.
The following is a Q&A with the performance of Jianye Chemical and Jianye Laminates organized by Zhitong Finance APP:
Q: Is it possible for the company to spin off the real estate business? Will there be investment to increase the return of shareholders this year?
A: Seven or eight years ago, I said that we will reach 10 billion in future rents. This year our rental income has exceeded 1 billion to reach 1.1 billion, which is more than the rent collection of many real estate companies, but we have not considered the points yet. Demolition, wait until the time is ripe to discuss this matter.
As for whether this year will invest, everyone will see the United States raise interest rates. It will increase twice this year. It will increase three times this year and three times next year. It’s scared to death. At the beginning of the rate hike, everyone did not notice that it was warm boiled frogs. You die without feeling. Therefore, I think it is better to be stable. We will prudently invest and are still considering it.
Q: What are the plans for increasing production capacity? When will the plant be put into production?
A: The site of the Shaoguan factory is ready. Next year, it will put into operation 900,000/month of FR4. The turnover will be about 1.4 billion a year. This year, a lithium battery copper foil plant will be added in Lianzhou and will be put into operation at the beginning of next year. Now, two factories, glass and glass cloth have been put into production, which has also achieved quite good profit.
Q: When will the sales of the company's residential projects begin? How much will the copper-clad panel increase this year?
A: In Kunshan, we bought two plots in January, one piece of 200,000 square meters and one piece of 100,000 square meters. It cost about 5 billion yuan. We will sell it until the entire project is accepted, about three years. In London, we don't have property sales, but investment properties. Hengyang is an industrial land change. We are working on this and the timetable has not yet come out.
As for the price of copper-clad panels, our sales were still booming in the first quarter this year, and we had an increase of 5% in January.
Q: Is the company's current real estate project mainly in the Yangtze River Delta. Have you considered investing in some projects in Guangdong, Hong Kong, Macau and Dawan District? Will the Sino-US trade war affect the company's business?
A: Our real estate projects are still in East China, including Kunshan, Shanghai, Huai'an, etc. We have been working stably in that area. In Dawan District, we also have some real estate projects in Panyu, which are now under construction. At present, many policies in the Dawan District have not yet come out. It is still unclear what the Dawan District will do in the future. Of course, the development of the Dawan District is definitely beneficial to Hong Kong.
I didn't see the contents of the Trump Act last night. It is too early to say, but on the whole, it is easier for the US manufacturing industry to surpass China. Now China's production technology is more advanced than Europe and America. I believe that it is special. The grandson of Rump is born to win us. I think that the production technology and equipment in the United States are more than 15 years behind China. I don't dare to say that cutting-edge technology, but the production technology of civilian household appliances is backward behind us.
Q: Although you feel that the US technology lags behind China, will it affect the price of global products and limit the company's ability to increase its price? Will it consider buying new real estate projects this year? If so, the cost of financing Or will the channel consider different methods?
A: We have bought a lot of rent-collecting properties in London. The current interest rate hike cycle has just begun. I want to consider investing after I have decided.
In terms of trade wars, I really can't answer the question of the impact of 60 billion. But we are the world's largest supplier of copper-clad panels, with a vertically integrated production model and 28 years of history, and can accept any challenge, so I think The impact of the trade war on the construction of copper-clad panels will not be too great.
On the other hand, 5G will bring great business opportunities for Jianye. For example, we are now helping mobile to do 5G base stations. I believe that 5G replacement will happen in the next year or two, so 5G will build up in the next few years. Laminates and built-in circuit boards are all great business opportunities.
Q: What is the amount of the company's exports to the US? What is the approximate ratio?
A: The amount we export to the United States is about 10%. In fact, most of our PCB manufacturers are in China, because the scale of China's circuit boards is almost 70% to 80% of the world's scale. It is not easy to find such a supplier. The goods that we actually export to the United States are actually sold back to Southeast Asia or the rest of the world. Some of them may be American brands. To determine the proportion of exports to the United States, we must To do statistics, but our customers are mainly to sell to the circuit board factory, and most of the circuit board factory is China, and there are not many goods indirectly to the United States, because the dismantling factory is also mainly in China.
We also have a buffer for copper-clad panels and circuit boards, because we also have copper-clad panel factories in Thailand, which has doubled production capacity in Thailand this year, reaching 1 million sheets, accounting for almost 5-6% of our group's turnover. The board factory also has a factory in Thailand, and we are currently developing a new factory in Myanmar.
Q: Where is the main reason for the better turnover in January this year than last year?
A: Our copper-clad panels can be shipped in the first quarter, because the overall electronics market demand is strong, there are 5G and electric vehicles, such as BYD, Geely have been vigorously promoting electric vehicles, I think the next five to ten years The electric vehicle market will have huge business opportunities.
When it comes to electric vehicles, Tesla's battery copper foil is also bought with us. I can't continue to produce them without giving them copper foil. So the trade war is not so simple. Many things have to be mutually cooperative. Originally, Cooperation is very good, and it is unlikely that it will suddenly be hard to separate.
Q: In January, the price of copper-clad panels increased by 5%. How much is the price increase in the rest of the year? How much space will there be for upstream materials this year? There is only one real estate project launched this year. Is it afraid that the income in this area is limited?
A: The overall market in the first quarter of this year is very good. We also raised the price by 5% in January. I believe that the future price trend will be very stable. The future market will not be balanced quickly, so we will be the future. The price is also very confident.
In terms of real estate projects, after the real estate projects were fully accounted for in 2019-2020, the Jianye laminates were concentrated back to our main business laminates and upstream materials, so the proportion of real estate will decrease year by year, but the profits are more and more impressive. Because we are selling more and more, we will sell all the properties of Jianye Laminate after completing the fourth and fifth phases of Huaqiaoyu Garden, but Jianye Chemical will continue to do real estate. .
Upgraded Materials: The Household Cleaning Towels are made from 80% polyester, 20% polyamide, with a higher polyamide content, making them stronger and more durable. Plus, the non-abrasive Household Cleaning Towel Wipe is thick and soft, lint-free and scratch-free.
HIGH EFFICIENCY: These Household Cleaning Microfiber Towels are highly absorbent and quickly capture water stains and dust, ideal for streak- and lint-free cleaning, making household cleaning more convenient and efficient. Versatile: You can clean, dust, scrub, polish and Dry most surfaces in your home, office and car. Great for house cleaning towel, dusting, glass, usually used as furniture wipes, appliance towels, musical instrument towels, glass cleaning cloths, bathroom cleaning supplies.
Household Cleaning Towel,Kitchen Cleaner Cloth,Microfiber Glass Towel,Microfiber Glass Cleaning Cloth
SUZHOU BETTER CLEAN CO LTD , https://www.betterclean.net