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Beijing Career (002350): New scale of profit scale, steady development of business development

Beijing Career (002350): New scale of profit scale, steady development of business development

Matters: The company released its 2018 annual report and achieved revenue of 25.

500 million, an annual increase of 15.

14%, net profit attributable to mother 1.

2 billion, an annual increase of 41.

72% EPS 0.

2 yuan, it is proposed to distribute a cash dividend of 0 for every 10 shares.

60 yuan (including tax).

At the same time, the company released the 2019 first quarter report and achieved revenue5.

20,000 yuan, an annual increase of 40.

02%, net profit to mother 713.

50,000 yuan, an annual increase of 31.

32%.

Ping An’s perspective: The scale of income has steadily increased, and net profit attributable to mothers has exceeded 100 million for the first time.

In 2018, the company achieved revenue of 25.

500 million, an annual increase of 15.

14%, net profit attributable to mother 1.

20,000 yuan, an increase of 41 in ten years.

72%, net profit after deduction 1

10,000 yuan, an increase of 53 in ten years.

46%.

Comprehensive gross profit margin 24.

56%, a decrease of 0 every year.

A total of 76 expense ratios for sales, management, R & D, and finance were 19.

99%, a decrease of 0 every year.

For a total of 48, the decline in the expense ratio has hedged the impact of the gross margin level.

Net interest rate 4.

19%, an increase of 0 every year.

51 single, mainly affected by the further growth of other income; other income increased by 0 every year in 2018.

24 ppm, mainly due to the expected increase in the amount of reimbursement.

On the whole, through the steady growth of the company’s revenue scale and effective control of costs, the scale of net profit attributable to mothers exceeded 100 million yuan for the first time since listing and reached a new level.

Product structure optimization, the proportion of switches and automation products increased.

In recent years, competition in the distribution network equipment industry has been fierce, and the gross profit margin of products has continued to decline. The company’s product structure has been optimized while increasing its market expansion efforts to achieve steady revenue growth.

Specifically, in 2018, the revenue scale of switch and automation products with relatively high gross profit margins increased rapidly, and the scale of box transformer products with relatively high gross profit margins was effectively controlled; the revenue of switch products in 201816.

20,000 yuan, an increase of 36 in ten years.

97%, revenue from automation products2.

26 ppm, an increase of 18 in ten years.

78%, while the box-type products revenue4.

65 ppm, a ten-year average of 22.17%.

Newly signed contracts increased by 12.

94%, the income scale can be expected to continue to grow steadily.

The company signed a new contract in 201831.

42 ppm, an increase of 12 in ten years.

94%, continued to maintain a good growth trend; of which user engineering contracts4.

88 ppm, an increase of 39% per year, reducing dependence on the grid company market.

The scale of the industry, the rapid development of new energy vehicles, and distributed photovoltaics promote the demand for distribution network equipment. At the same time, distribution network, as a counter-cyclical industry, tends to grow steadily under the pressure of the economy.

We believe that the distribution network industry is booming, and the company has achieved continuous and steady revenue growth through active market expansion and capacity expansion.

The gross profit margin is at the bottom stage, and there is room for improvement in the future.

At present, the net interest rate of distribution network equipment companies has decreased, and the increase in gross profit margin has a significant impact on profitability.

The distribution network equipment industry is an asset-light industry. In 2018, the company’s raw material cost accounted for 92% of the total cost.

11%, ROE is only 5.

86%, the highest level in history.

In 2018, the gross profit margin of distribution network equipment enterprises continued to grow overall. Considering the industry’s asset-light properties and the relatively rigid costs of sales and management, we expect that there is limited space for subsequent gross 武汉夜网论坛 profit margins.

The company’s strategy focuses on the field of distribution networks, and has a certain brand advantage through long-term accumulation. Per capita income has continued to increase in recent years, and production efficiency has significantly improved.

We judge that the current company’s gross margin level is at the bottom stage and there is room for improvement in the medium and long term.

Revenue grew rapidly in the first quarter of 2019, and net profit margins remained flat.

The company released the 2019 first quarter report and achieved revenue of 5.

20,000 yuan, an increase of 40 in ten years.

02%, net profit to mother 713.

50,000 yuan, an annual increase of 31.

32%, comprehensive gross profit margin 21.

4%, down 4 each year.

12 averages.

We estimate that the proportion of revenue from low-margin products such as box transformers increased 重庆耍耍网 in the first quarter, which lowered the overall gross profit level.

In the first quarter, the total expense ratio of sales, management, research and development, and finance was 21%, and then fell 4.

6 levels, effectively hedged the impact of lower gross profit margin; net interest rate 1.

85%, basically flat for one year.

Investment suggestion: Considering that the overall gross profit margin in 2018 is slightly lower than expected, the company’s profit forecast is lowered. It is expected that the net profit will be returned to the mother in 2019-2020

29, 1.

62 ppm (original value of 1.

41, 1.

8.5 billion), EPS 0.

26, 0.

32 yuan, dynamic PE 26.

0, 20.

7 times.

The company’s operation and development is in a period of steady rise, maintaining the “recommended” rating.

Risk reminders: (1) The company’s main customers are State Grid and China Southern Power Grid, and there is a risk of scattered and concentrated customers.(2) The homogeneous competition of products in the distribution network equipment industry is severe, and there is a risk that the gross profit margin will continue to decline.

(3) Risks that new business such as power services and investment M & A projects do not develop as expected.