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.
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.
At 31 yuan, the corresponding estimates are 17.
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