Beijing New Building Materials (000786): The bottom of the North American lawsuit settlement profit appears

Beijing New Building Materials (000786): The bottom of the North American lawsuit settlement profit appears

Guide to this announcement: The company announced that it will resolve the North American litigation issue at one time, and Taishan Plaster will pay 2.

At 4.8 billion US dollars, the gypsum board lawsuit that has been entangled with the company for several years has been basically resolved, maintaining the “overweight” rating.

Investment Highlights: Maintain “Overweight” rating.

The company announced a one-time settlement of the North American lawsuit, and Taishan Plaster will pay 2.

For $ 4.8 billion, the entanglement company’s gypsum board lawsuit has basically been resolved for several years.

Considering the impact of the lawsuit, we lower the EPS for 2019-2021 to 0.

44 (-1.

17), 1.

66 (-0.

10), 1.

90 (-0.

02) Yuan, we are optimistic 南京桑拿网 about the international development of the company after the merger lawsuit and maintain the target price of 28.

22 yuan.

After years of entanglement in the ultimate settlement of lawsuits, compensation is expected.

In 2009, high-rise housing owners and construction companies in the United States filed a lawsuit against Beixin and Taishan Gypsum, asking for compensation for the losses caused by the use of gypsum boards. Until the end of 2018, Beixin and Taishan’s cumulative expenditure related lawyers, compensation and so on reached 7.

4 trillion, the average annual legal fee expenditure in the past 3 years is about 0.

94 million, which continued to affect the company’s performance.

In this one-off settlement, we believe that the company has solved the company ‘s biggest hidden danger for many years. The amount is expected to be 300 million U.S. dollars expected 北京桑拿洗浴保健 by the market, and it reduces the future litigation costs and the uncertainty of the judgment. It clears the biggest obstacle to the company’s future internationalization.We judge that the pace of internationalization will accelerate in the future.

Affect current performance in 19H1.

0.5 billion.

Tarzan paid a total of 2.

$ 4.8 billion for the 2.

US $ 4.8 billion will be used as a projected budget in a single one-time replacement in Taishan Plaster’s financial statements for the first half of 2019, which will affect Beixin’s 2019H1 net profit by approximately 17.

0.5 billion.

The operating performance in 19H1 also decreased by about 20%, among which q2’s operating performance was better than expected.

The company foresees 19H1 performance improvement6.

4-7.

800 million, we expect to be close to the ceiling.

We judge that the company’s sales volume increased slightly in the first half of the year, and the price Q2 was basically stable compared to the previous quarter. Excluding the impact of reconciliation, Beixin’s operating performance in the first half of the year was about 1 billion, a 20% decrease, compared with a 33% decrease in 19Q1, and a Q2 decrease of about 15%.Obviously narrowed and better than expected, the bottom point of profit has now been reached.

Risk warning: raw material prices rise, macroeconomic decline