Xu Ji Electric (000400): The performance growth rate exceeds Shen Wanhongyuan’s expectations.
Announcement information: The company released the forecast of the first three quarters of 2019.The report summarizes that the company expects to realize net 杭州桑拿网 profit attributable to mothers2.56-2.890,000 yuan, an increase of 65% -86 over the same period last year.45%; basic return 0.2543-0.2874 yuan / share.On July 9, 2019, it is estimated that the net profit attributable to mothers will be 82.89 million yuan-1.1.6 billion, an increase of 253 over the same period last year.89% -396.19%; basic profit return is 0.0822-0.1153 yuan / share. Investment highlights: The third quarterly report showed faster-than-expected growth, and improved operating management led to growth.The company achieved net profit attributable to mothers during the 2019 Interim Report1.740,000 yuan, an increase of 31 in ten years.48%, net of non-attributed net profit1.48 ppm, an increase of 41 in ten years.33%. In the first half of the year, the growth of grid investment accelerated, and the company’s performance 淡水桑拿网 growth mainly benefited from improved operating management.The company’s gross profit margin, net profit margin, operating cash flow and asset turnover rate have improved.The growth rate of the third quarterly report exceeded expectations, mainly benefiting from the continuous improvement of the company’s operations and the steady growth of its main revenue. The intranet market has steadily improved, and the extranet market has made multiple breakthroughs.In the first half of the year, the company successfully won the bids for Qinghai-Henan, Northern Shaanxi-Wuhan DC projects, Yungui interconnection projects, converter valves and DC control and protection systems.The State Grid recruitment market is steadily rising, and it is actively exploring the internal increase of the provincial network.The company focuses on the construction of “unicorn” large customers such as Huaneng, Guodian Investment, Guoneng Investment, China Resources, Three Gorges Group, and China Mobile.New products and new business markets were accelerated, and the first set of products continued to land.The distribution network cloud master station system and intelligent distribution transformer terminal were applied for the first time in Qingdao and Jinan exchange IoT pilots, and the auxiliary monitoring system achieved the first set of operations on Hohhot Metro Line 1. Strive to be the leader of the “three types and two networks” construction of the State Grid, benefiting from the construction of UHV and the ubiquitous electric power Internet of Things.The 2019 State Grid Work Conference proposed the construction of a hub, platform, and shared enterprise, and the company fully supported the construction of the “three types and two networks” of the State Grid.The 2019-2020 period is the peak period for the delivery of 14 UHV line equipment, and the company is one of the few domestic companies with a complete set of solutions for DC transmission equipment.The company has cooperated with the Chinese Academy of Electric Power in the transfer of product technology achievements, signed a strategic cooperation agreement with ZTE, and strengthened joint research on key technologies such as ubiquitous electric power Internet of Things, 5G, and offshore flexible market cooperation. Revise down earnings forecast and maintain rating unchanged: We lower our company’s profit forecast for 2019 based on a prudent attitude and expect to achieve net profit attributable to mothers4.09 million yuan (before the revised earnings forecast was 11.9.6 billion), the company’s profit forecast for 2020-2021 is expected to achieve net profit attributable to mothers5.1.5 billion, 6.32 ppm, corresponding to zero revenue for 2019-2021.41 yuan / share, 0.51 yuan / share, 0.63 yuan / share, the current expected corresponding PE is 21 times, 17 times, 14 times.Due to the insufficient growth of the overall investment in the power grid in the previous period, our profit forecast for 2018-2019 is slightly optimistic. Therefore, we have lowered the previous profit forecast for 2019.2020-2021 is expected to usher in a rapid rebound in UHV orders and the proliferation of orders for the power IoT. Therefore, we maintain our “Overweight” rating unchanged. Risk warning: UHV delivery is less than expected; smart meter replacement is less than expected; ubiquitous electric power IoT advances less than expected