Liangxin Electric (002706) Third Quarterly Report Review: Multi-point Flowering Revenue Downstream Increases Significantly
The event company released the 2019 third quarter report with operating income of 15.1 billion, an annual increase of 22.8%; net profit attributable to mother 2.5.3 billion, an increase of 15 in ten years.1%; net profit of non-attributed mothers 2.2.2 billion, an increase of 18 in ten years.1%. A brief evaluation of the performance Q3 single-quarter revenue growth was obviously slightly faster than expected, replacing the government subsidy to affect the mother net profit in line with expectations.Company Q3 revenue 5.600 million, an increase of 32 in ten years.1%, an increase of 14.1% over the first half.3 points.As more than 20 million government subsidies received by the company in the third 杭州桑拿网 quarter of last year were received early in the middle of this year, compared to the weak increase in net profit attributable to mothers, non-net profit was deducted by zero.9.2 billion millimeters increased by 22.7% can more objectively show the company’s actual operation.Gross profit margin for the first three quarters of 41.32% a year -1.1pct, mainly due to the increase in the proportion of low-margin 5G special miniature circuit breakers supplied to Huawei; the cash flow from operating activities2.7.4 billion, an increase of 56 previously.2%, the recovery of accounts receivable is accelerated. 5G is rapidly accelerating Q3 revenues to accelerate month-on-month, and many businesses such as real estate are expected to exceed expectations.1) Intelligent building: Q3 land completion area increased by 2.3%, and the monthly growth rate of each month has maintained a steady increase. The difference between the completion of real estate and the start of construction is expected to continue to narrow.The growth rate of Vanke and other leading real estate companies has significantly expanded the industry, and the expansion of smart home is scheduled to expand to an estimated 80 million, which has doubled at the end of the calendar year. The company’s smart building business is expected to grow close to 30%, of which Vanke ‘s shipments have gradually reached 300 million, Obviously step up.Last year, the newly signed customer Country Garden, the China Shipping merger is also expected to exceed expectations. 3) Communication: The construction of 5G macro base stations is started, which is expected to reach 150,000 seats. The expansion of the company’s 5G 1U DC circuit breakers is significantly accelerated. The monthly order data of customers such as Huawei is being enlarged monthly, and the maximum is expected to exceed 80 million.2) Photovoltaic: The domestic photovoltaic market Q3 has resumed, overseas high prosperity continued to maintain, and the photovoltaic growth has gradually reached 50%.More than 8 billion, return to the peak in 2017. The Haiyan production base officially started to help the industrial chain extend, and an industrial investment fund was established to accelerate the expansion of the power industry.The foundation of Liangxin Haiyan, which plans to invest 1.1 billion yuan on September 28, officially laid a foundation, which will effectively increase the company’s production capacity to meet future high-speed growth. At the same time, the company will gradually expand the assembly of low-voltage electrical appliances to the upstream and upstream parts production and processing, and the gross profit margin of the product is expected.Further improvement.In addition, the company plans to invest 85 million yuan in cooperation with professional investment institutions to establish an industrial investment fund to focus on smart grid investment, promote the extension of the company’s secondary power, and forecast electricity markets outside the smart meter market. Profit adjustment and investment recommendations We expect the company’s 2019-2021 results to be 2 respectively.8 billion, 3.700 million, 4.800 million, net profit compound growth 29.3%, currently the corresponding three-year estimate is 21.7x, 16.6x, 12.7 times.Give a six-month target price of 11.7 yuan, corresponding to 2020 EPS 25x. Risks suggest that the construction speed of domestic 5G base stations is not as expected; the completion of real estate is not as expected.