McGmitter (002851) 2019 Interim Report Review: New Energy Automotive Business’s High-Growth Operational Efficiency and Significant Improvement in Cash Flow

McGmitter (002851) 2019 Interim Report Review: New Energy Automotive Business’s High-Growth Operational Efficiency and Significant Improvement in Cash Flow
Matters: In the first half of the year, revenue increased by 61%, and net profit attributable to mothers increased by 148%, which continued to exceed market expectations.The company’s revenue in the first half of 2019 was 16.6 billion, an increase of 61 in ten years.06%, net profit attributable to mother 1.6杭州桑拿网.2 billion, an increase of 148 in ten years.At 07%, the company ‘s democratic forecast for the first half of the return to the mother ‘s net profit increased by 110% -160%. The actual performance was lower than the forecast range, which slightly exceeded market expectations.4.1 billion, a growth of 175 in ten years.63%.The company completed the acquisition of minority shares in subsidiaries in the third quarter of last year. If factors other than consolidation are excluded to affect the first half of the year and profit growth is expected to increase 64.16%, still reflects sustainable growth. Comment: New energy vehicles and rail transit business increased by 239%, and it is expected to continue to grow rapidly in the second half and next year.In the first half of the year, the company’s revenue from new energy vehicles and rail transportation products5.52 ppm, an increase of 238 in ten years.82%, mainly due to the significant development of the supply of new energy to BAIC, is expected to be about 50,000 sets in the first half of the year, gradually reaching more than 100,000 sets.On July 17, Beijing issued a capital incentive policy for updating taxis to pure electric vehicles, which is beneficial to the future growth of BAIC New Energy. McGmitter also gradually provided core components for other OEMs such as Dongfeng.Continuous business growth is expected. New customers of smart bathroom products have developed better, and display power and inverter air conditioner controllers have grown rapidly.The company’s smart bathroom business revenue in the first half of the year 1.9.4 billion, a ten-year growth4.23%, mainly due to the high base in the same period last year, the company’s new customer segmentation volume continues to rise, and the growth is expected to accelerate in the second half of the year.Revenue from other home appliances electronic control business 5.1 billion, an increase of 32 in ten years.29%, display power products consolidate the leading position of the flat-panel TV industry, open up subdivision applications such as laser projection, and inverter air conditioner controllers have achieved higher growth in overseas markets. The rapid growth of industrial power 43.6%, the rapid growth of communication power next year is expected, and the industrial control business will grow steadily.Revenue from industrial power business in the first half of the year 2.4.6 billion, an increase of 43 in ten years.62%, commercial display products and communication power products have grown significantly, and medical power products have grown steadily due to the impact of the trade war.The company continues to increase R & D investment in 5G and other fields, and it is expected that the communications power business will perform better next year.In the first half of the year, the demand for the industrial control industry declined, and the company’s industrial automation product revenue increased by 26.4%, reaching 1.5.3 billion.Among them, inverter and PLC products were flat or slightly decreased, and the intelligent welding machine business achieved higher growth.The company’s market share in the industrial control industry is still growing, and most of its customers are industry leaders. It is expected that industrial automation products will continue to grow in the future. The gross profit margin was affected by the new energy vehicle business, but operating efficiency improved and cash flow improved significantly. The company’s gross profit margin for the first half of the year was 24.84%, a decrease of 4 per year.32%, mainly due to the continuous decline in prices of new energy vehicle business affected by subsidies.In the first half of the year, the sales and management expense ratios decreased by 1.23% and 1.45%, the net profit in the first half of the year was 9.85%, a slight increase of 0 a year.01%, operating efficiency has been continuously improved.Net cash flow from operating activities in the first half of the year was 2.8.2 billion, a net decrease of 0 in previous years.1.2 billion growth. Investment suggestion: We expect net profit attributable to mothers in 2019-2021.63, 4.92, 6.5.5 billion, an increase of 80%, 36%, 33% over the same period, EPS is 0.77, 1.05, 1.40 yuan, taking into account the company’s high-energy automotive business growth, smart bathroom and industrial control business has growth potential, the new product layout gradually increased volume, with reference to the level of change in the industry, given 35 times PE in 2019, target price of 27 yuan, maintaining “Recommended “rating. Risk warning: New product expansion exceeds expectations, and new energy vehicle business product prices are accelerating to decline.