McGmitter (002851) Interim Report Comments: Interim Report Exceeds Expectation of New Energy Vehicles and Increases Results

McGmitter (002851) Interim Report Comments: Interim Report Exceeds Expectation of New Energy Vehicles and Increases Results
Revenue increased by 61% and profit increased by 148%.The company achieved operating income of 16 in 19H1.Six ten percent, an annual increase of 61.06%; net profit attributable to the parent company1.620,000 yuan, an increase of 148 in ten years.07%, the corresponding EPS is 0.34 yuan.The gross profit margin for 2019H1 is 24.84%, a decline of 4 per year.32pct; net profit at home is 9.74%, an increase of 3 per year.42pct, performance growth exceeded expectations. In the new energy automobile sector, such as BAIC and other large customers, heavy volume, withdrawal, and product integration have affected the gross profit margin. 2019H1 company’s new energy vehicle + rail transit sector revenue5.5.2 billion, previously +238.8%, +23.7%; gross profit margin 23.2%, at least -11.4pct, ring than -13.0pct.The company is the main supplier of the PEU system for the EU / EC series of BAIC A0 and above models. Since 2019, BAIC has rapidly contributed to its performance.BAIC’s production target of 200,000 vehicles this year will continue to drive the company’s new energy sector’s high performance.During this period, the industry’s supplementary tax rebate has an impact on the 北京夜网 gross profit margin; at the same time, the company’s new energy vehicle product structure has transitioned from a single MCU to PEU (MCU + OBC + DC / DC, etc.). The gross profit margin has also declined slightly, but the value of the product has increased initially.Resisted the impact of product price reductions on gross profit margin. Household appliances, industrial control grew steadily, and industrial power grew even higher.Revenue from the H1 appliance segment in 20197.4.0 billion, +23 per year.2%, +34.4%; gross profit margin 21.5%, at least -3.3pct, ring than -2.0pct. The growth rate of H1 is slower than the growth rate of about 50% of the previous Q1, but the overall growth rate is still high. Among them, the conversion shows a better growth.2019H1 company’s industrial automation sector achieved revenue 1.53 trillion, ten years +26.4%, +14.0%; gross margin 37.9% 北京夜网 every year -0.1pct is basically flat, +6 from the previous quarter.1pct. The industrial control industry recovered Q1, Q2 was affected by the trade war, and the company was affected by the industry. Conversion, PLC and other products were flat or slightly reduced, but the business boundaries continued to widen and grew steadily. Industrial power H1 increased by 43.6%, communication power benefits 5G development is expected to continue to increase.Revenue of industrial power sector in H1 20192.46 trillion, ten years +43.6%, MoM-1.2% was basically flat; gross margin was 29.8%, twice -2.2pct, ring than +0.1pct.In the first half of the year, telecommunications power supplies benefited from the constructive growth of 5G. The company actively cooperated with European 5G core suppliers Ericsson, Philips and other international customers. It is expected that the communications sector will maintain high growth rates.Medical power has grown steadily. The three subsidiaries of Jardine Sanitary, Shenzhen Driven, and Shenzhen Control contributed consolidated profits in the second half of the year. Jardine Sanitary / Shenzhen Drive / Shenzhen Control began consolidation in the second half of 18 years, and the net profit of the three companies in 19H1 was 0.32/0.67/0.09 billion, with completion rates of 33.7% / 96.2% / 48.5%, 19/20 performance commitments total 1.83/2.35 trillion, is expected to still be completed in excess. Earnings forecast and investment grade: It is estimated that the net profit attributable to mothers will be 3 in 2019-21.74/4.93/6.38 billion, an increase of 85.0% / 31.8% / 29.5%; EPS are 0.80/1.05/1.36 yuan, corresponding to the current price of PE is 24 times / 18 times / 14 times.Considering the company’s cross-domain diversified layout, multi-wheel drive performance growth and entering a period of synergy efficiency improvement, it is given 35 times PE in 2019 with a target price of 28 yuan and maintains a “buy” rating. Risk warning: Macroeconomic downturn, price reductions exceed expectations, sales volume is lower than expected