Chint Electric (601877) 2019 Third Quarterly Report Review: Expansion of Low-Voltage Electrical Appliances Enhances Photovoltaic Business and Continues Rapid Growth
Revenue in the first three quarters increased by 17.
62%, net profit attributable to mothers increased by 2.
65%, in line with market expectations.
The company’s revenue in the first three quarters was 224.
7.7 billion, an increase of 17 in ten years.
62%, net profit attributable to mother 28.
6.4 billion, an annual increase of 2.
65%, net profit after returning to mother is 27.
9.9 billion, down slightly from 0 previously.
02%, excluding the effect of transferring generator revenue every year, the net profit attributable to the mother in the first three quarters will increase 武汉夜生活网 by about 20% each year.
The company’s revenue in the third quarter was 80.
50 billion, an increase of 10 years.
67%, net profit attributable to mother 10.
8 billion, a ten-year growth of 7.
21%, net profit after deducting non-return to mother 10.
6.9 billion, an annual increase of 5.
38%, company performance in line with market expectations.
Comment: The low-voltage electrical appliance business continued to grow steadily, with industry marketing and overseas markets actively pushing forward.
The company’s low-voltage electrical equipment business increased by 10.
4%, an increase of about 11% in the first three quarters, with a slight increase in growth rate.
The company continuously strengthens industry marketing and strengthens the expansion of major customers in the power, communications, industrial control and construction engineering industries.
The company has in-depth cooperation with State Grid in the Pan-American power IoT field and is expected to contribute next year; the direct sales business in the communications field is growing rapidly, and new products are jointly developed with operators for 5G base stations;Real estate companies have been shortlisted in dozens of enterprises. The share of enterprises that transfer ownership of the land industry is concentrated, and the company will also increase its market share.
The company further cultivated overseas markets. In the first three quarters, its low-voltage overseas business grew by nearly 20%. It has established strategic major customer business with world-renowned companies. It is expected that overseas business will continue to grow rapidly.
The photovoltaic business grew by about 30%, and the growth of the power station business accelerated.
In the first three quarters, the company’s photovoltaic sector revenue increased by about 30%, and profit growth was close to 30%, which is expected to be about 7.
600 million, of which power plant business profits accounted for more than 70%, EPC business profits accounted for about 10%, manufacturing and household business are expected to be about 8%.
As of the end of September, the company’s installed capacity of photovoltaic power stations was 3.
18GW, an increase of 64 compared with the same period last year.
63%, an increase of 16 from the end of the second quarter.
95%, operating electricity income in the first three quarters17.
96 ppm, an increase of 14 years.
The company’s household photovoltaic business has also achieved rapid growth. The sales + lease model in the first three quarters totaled approximately 960MW, which is expected to exceed 1GW.
The growth of domestic photovoltaic installations has accelerated since the third quarter of this year, and demand in overseas markets has continued to improve. It is expected that the company’s photovoltaic business will achieve rapid growth in the fourth quarter and next year.
Gross profit margin increased, and operating cash flow increased.
The company’s gross profit margin for the third quarter was 31.
71%, an increase of 1 per year.
40%, a month-on-month increase of 2.
At 71%, the gross profit margin of the low-voltage electrical appliances business increased by about 1%. The photovoltaic power plant business also saw a significant increase in gross profit margin through the increase in power generation hours and improvement in operation and maintenance efficiency.
Sales expense ratio for the third quarter was 6.
93%, increasing by 0 every year.
23%, management expense ratio 4.
03%, reduced by 0 every year.
Bills receivable and accounts receivable 130.
8.6 billion, an increase of 22 from the beginning of the year.
22%, net cash flow from operating activities was 29.
55 billion, a previous sharp increase of 99.
05%, mainly due to a substantial increase in EPC business receipts.
Earnings forecasts, estimates and investment ratings.
We maintain that the company’s net profit attributable to mothers for 2019-2021 is 39.
63 ppm, a 10-year increase of 10%, 15%, 16%, and an EPS of 1.
45 yuan, corresponding to an estimate of 12, 10, 9 times. Taking into account the company’s industry leader level, with reference to the same industry forecast level, maintain a target price of 30 yuan, corresponding to 16 times PE in 2019, maintain a “strong push” rating.
Risk warning: Macroeconomic 武汉夜生活网 growth is declining, commodity prices are rising rapidly, and photovoltaic supplementation is falling more than expected.