Jiechang Drive (603583): Third-quarter results exceed expectations and are bullish on long-term development potential

Jiechang Drive (603583): Third-quarter results exceed expectations and are bullish on long-term development potential

Jiechang Drive (603583): Third-quarter results exceed expectations and are bullish on long-term development potential

The third-quarter performance exceeded expectations and the gross profit margin declined. The company released its third quarter report and achieved revenue of 10 in the first three quarters of 2019.

10,000 yuan, an increase of 37 in ten years.

5%; net profit attributable to mother 2.

25 ppm, an increase of 40 in ten years.

8%.

By quarter, 19Q3 single-quarter revenue3.

60,000 yuan, an increase of 40 in ten years.

2%; net profit attributable to mother is 74.23 million yuan, an increase of 37.

3%, still maintaining high growth.

As the company’s products are mainly exported to the United States, affected by the escalation of trade disputes, Q3 gross profit margin was 32.

79%, a decline of 10 per year.

38.

Corporate expense ratio has shrunk, Q3 financial expense ratio 3.

14 pct, a decrease of 3 per year.

46 pct. At the same time, the asset disposal income and net investment income totaled 11.83 million yuan, which will certainly reduce the impact of tariff reductions on net interest rates.

Operating net cash flow in the first three quarters2.

190,000 yuan, an increase of 67 in ten years.

09%, basically 成都桑拿网 matching the scale of profit.

Overseas capacity transfer is smooth, optimistic about the company’s long-term development potential. According to the announcement, the company invested 5 million yuan to set up a wholly-owned subsidiary in Taiwan, China for product sales; the US subsidiary contributed US $ 25.3 million, and established a wholly-owned subsidiary in Malaysia.Sun Company, as the company’s overseas production base, actively implements capacity transfer and accelerates global deployment.

The trade disputes escalated in June, and the company’s revenue in the third quarter still maintained a high level of growth, indicating that downstream customers are more sticky, and recognition of product quality is the source of support for the company’s long-term development.

At the end of the third quarter, the company’s advance accounts were 2,372 million, equivalent to an increase of 33 at the beginning of the year.

52%, sufficient orders.

Investment suggestion: It is predicted that the revenue for 19-21 will be 13 respectively.

92/17.

67/21.

7.6 billion, with EPS of 1.

69/2.

03/2.

42 yuan / share, the current sustainable corresponding PE is 20x / 16x / 14x.

There is a certain difference in the proportion of the company’s products and comparable companies. Under the background of continuous downstream demand, the company has strategic layout in the fields of smart home and photovoltaic industry. The product application scenarios are expanded and the future growth is better.

Taking into account the differences in assessment levels and growth of comparable companies, the company’s 19-year PE is 26x, corresponding to a reasonable value of 44.

04 yuan / share, give the company a “buy” rating.

Risk reminders: the risk of intensified trade friction between China and the United States, the risk of fluctuations in gross profit margin, the risk of intensified market competition, the fluctuation of the RMB exchange rate, and the relatively high concentration of customers.