Hongfa shares (600885) 2019 first quarterly report comments: performance in line with expectations continued high growth in emerging businesses
Investment Highlights The company released the first quarter report of 2019: realized operating income16.
$ 2.5 billion, growing by 1 every year.
82%; net profit attributable to mothers1.
5.7 billion, down 5 each year.
61%, with a budget benefit of zero.
21 yuan; net profit deduction for non-attribution1.
500,000 yuan, in line with market expectations.
Revenue growth was short-term and profitability remained stable.
Gross profit margin for the first quarter of 2019 was 38.
17%, down by 1 every year.
44 points; net margin is 13.
42%, a decrease of 0 every year.
78pct, 2014-2019Q1 The company’s gross profit margin and net profit margin remained relatively stable.
Emerging business continued to grow rapidly, and power relays returned to high growth.
In the first quarter of 2019, the company’s emerging business achieved rapid growth. High-voltage DC relays and low-voltage electrical appliances increased by 58% / 31% every time; power relays benefited from the rebound in meter bidding volume and returned to a higher growth rate of more than 20%.
The growth rate of industrial control relays continued to increase, and automotive relays fell more than expected.
In the first quarter of 2019, the company’s industrial control relays and signal relays benefited from the recovery in downstream demand, which increased 北京夜网 by 40% / 37% respectively, and the growth rate continued to increase. The automotive relays were affected by the shrinking of the overall automotive industry demand, at least 30%, which fell faster than expected.The home appliance industry adjusts, and the decline rate stabilizes every six.
Continued high R & D investment shapes global competitiveness.
The company consumed zero R & D expenses in the first quarter of 2019.
7.4 billion, an increase of 10 per year.
6%, R & D expenses accounted for 4.
6%, budget R & D expenses accounted for about 5%, adhere to high R & D investment, and continue to improve the global competitiveness of products.
Investment suggestion: We expect the company’s net profit from 2019 to 2021 to be 8 respectively.
5 billion yuan, EPS is 1.
68 yuan, corresponding to the closing price of PE on April 29, 2019 were 21.
4 times, maintain prudent overweight rating.
Risk reminder: less-than-expected progress in capacity growth and less-than-expected macroeconomic growth