Guodian NARI (600406) Interim Report Comments: Interim Report Meets Expectations Steady Growth of ICT Business

Guodian NARI (600406) Interim Report Comments: Interim Report Meets Expectations Steady Growth of ICT Business

Event: The company released a 19-year semi-annual report and achieved revenue of 109.

34 billion, an increase of 3.

57%; net profit attributable to mothers was 1.2 billion, down by 11.

17%; deduct non-net profit 11.

14 billion, an increase of 4.

1%; mainly due to the impact of changes in the provision of bad debts, otherwise profits are expected to grow further, and performance is in line with expectations.

In a single quarter, the revenue in 19Q2 was 71.

8.3 南京桑拿网 billion, an increase of 7%; net profit attributable to mother 11.

25 billion, down by 10.

6%.

The gross profit margin was relatively flat, and the ICT and integrated gross profit margin increased: the gross profit margin of the company in 19H1 was 27.

52%, flat for one year, up 3 from the previous month.

41pct to 24.

11%; ICT gross profit margin 23.

26%, the same increase of 2.

94pct, the improvement of the business structure; the protection of relay protection and the decline in the gross margin of flexible transmission3.

31 points to 32.

83%, the competition is intensified, IGBT raw material prices have risen; the power grid automation gross margin has been reduced by 0.

92pct to 27.

53%, due to changes in business structure; integrated gross profit margin increased by 17.

45pct to 46.

66%, the increase in energy-saving equipment rental fees.

Order underwriting growth in 19 years: At the end of 18, the company had 33.1 billion orders on hand (+5.

83%), with 193 new orders annually.

700 million (+ 11%); 19H1 management expense ratio decreased by 0.

35pct. In one year, it is planned to realize revenue of 314 billion yuan (+ 10%), operating costs of 22.3 billion yuan (+ 10%), period expenses of 36 billion, and the period expense rate will further decline.

Ubiquitous electric power Internet of things, UHV business is expected to usher in a new round of growth: Ubiquitous electric power Internet of things, UHV business is expected to usher in a new round of growth; internally, in the next 2-3 years, it will contribute to the company’s DC transmission related business development.

Investment suggestion: The company’s EPS for 19-21 is expected to be 1.

00/1.

14/1.

At 31 yuan, the corresponding estimates are 17.

3/15.

2/13.

2 times, give 22 times estimate in 19, maintain “Buy” rating.

Risk reminder: grid construction is lower than expected, competition is intensified, and risk is assessed