Connie Electromechanical (603111) 2019 Interim Report Review-Core Core Business Grows Beautifully

Connie Electromechanical (603111) 2019 Interim Report Review-Core Core Business Grows Beautifully

After the company eliminated Longxin Technology, its core main business grew beautifully. After the date of the rescue fund to replace Longxin Technology came to an end, the company’s operation was back on track.

The company’s main business orders for rail transit increased 36 times per quarter.

02%, the layout of new energy vehicles is advancing steadily, maintaining a “Buy” rating.

After excluding Longxin Technology, the performance growth is ideal, and the core main business competitiveness remains.

In the first half of 2019, the company achieved operating income18.

190,000 yuan, an increase of 0 in ten years.

62%, achieving net profit attributable to mothers1.

35 trillion, compared to the same period last year 6.

08 thousand yuan.

If we assume Longxin Technology, the company will realize operating income in the first half of the year.

770,000 yuan, an increase of 39 in ten years.

86%.

Comprehensive gross profit margin of businesses other than Longxin Technology 31.

96%. We estimate that the actual profit growth of the company’s core business in the first half of the year may exceed 50%.

The plan shows sincerity. After removing Long Xin, the business performance is back on track.

The company’s stock announcement intends to sell 100% of Longxin Technology to the bail-out fund. The company’s 12 shares are pledged for 25% of the shares held by the company, and the transaction price is 400 million US dollars.The crisis brought by the acquisition.

Rail transit main business orders are full, and the growth rate is somewhat more guaranteed.

As of the end of the reporting period, the company’s rail transit sector had an increase of 36 orders in hand.

02% to 39.

880,000 yuan, an increase of 28 orders higher than the end of 2018.

6% time point growth.

In the first half of the year, the company’s rail transit business income increased by 51.

63% to 14.

09 million yuan, the beautiful growth rate or the report’s 杭州桑拿养生会所 intervention to facilitate early delivery.

The company still continues to have a market share of more than 50% in the urban rail door system for more than ten years. The market share of EMUs has also exceeded 50%, and it has a larger share in the standard and dynamic market. The company has its own core component advantages.Outstanding, can ensure the overall control of market share and gross profit margin, and maintain strong competitiveness of the door system.

The high percentage of rail transit revenue besides urban rail transit fully benefits from the peak of domestic railway and subway traffic in 2019-2020. The company’s new Guangzhou subsidiary has been established to accelerate the layout of key regions.Certainty.

The new energy vehicle business is advancing steadily.

The company’s main high-voltage, charging harness assemblies and transportation door systems have maintained market share in independent brand OEMs, expanded the development speed of joint venture brand customers, and reported a 17% increase in revenue from the new energy vehicle parts segment.

28% to 1.

940,000 yuan, the subsidiary Connie New Energy achieved a net profit of 2.64 million yuan, an increase of tens of 25.

60%.

At the same time, the company’s traditional automotive precision forging parts have received orders from BMW, Yifa, Musashi, etc., trying to open up the market space with new energy products.

Risk factors: Long Xin’s reduction in progress is less than expected; domestic railway or subway construction progress is less than expected; the company’s product gross margin declines; new energy automobile parts or traditional automobile castings and forgings have grown less than expected.

Investment suggestion: Considering that the company’s track delivery sector has a good pace in the first half of the year, we slightly increase the company’s 2019-21 net profit forecast to 3.

4/4.

0/4.

500 million (previous forecast was 3).

3/3.8/4.

30,000 yuan), the net profit forecast for 2019 is 20% higher than 2018 (excluding Longxin Technology).

50%, the company’s current market value corresponds to 15 times PE in 2019, maintaining the company’s “Buy” rating.