Xingrui Technology (002937): muscle lean
Event: The company announced the third quarter report of 2019 and realized revenue from January to September 7.
64 ppm, an increase of 2 per year.
22%; net profit attributable to mothers1.
05 ppm, an increase of 31 in ten years.
67%; net profit after deduction is 0.
USD 9.1 billion, an annual increase of 19.
27%; cash flows from operating activities2.
1.9 billion, an increase of 156% in ten years.
The order appears to be reinstated.
Judging from the single quarter of Q3, revenue and net profit have fallen by 4 each year.
26% and an increase of 10.
59%, compared with Q2 single quarter revenue decreased by 4.
78% and net profit growth 7.
The fact of 5% indicates that the order status of the company is gradually improving, and through the reasonable control of period expenses, it finally obtains multiple ideal net profits.
More than 60% of the company’s revenue comes from IT and automobile giants such as the United States, Europe and Japan. The change in Q2-Q3 revenue shows that 苏州桑拿网 the Sino-US trade war has affected the purchasing decisions of major customers, but we judge that the trade war is easing CPE giants such as ArrisOrder for normalization.
Strong internal control capabilities.
The overall gross profit margin for Q3 at the end of 2019 was 28.
47%, an increase of one year.
77 single, mainly in the first quarter of 2019, gross margin increased to nearly 5 in the initial period of 29.
In Q3, Q2 and Q1 of 2019, the gross profit margins of each quarter were extended and increased by 0.
61 and 4.
56 averages, the gross profit margin is controlled at a very stable level.
Judging from the company’s inventory turnover, accounts receivable, accounts payable and cash flow management and other indicators, the company’s internal control capabilities are extremely strong.
This is closely related to the company’s actual controller and management team practicing the Amoeba management model of Kazuo Inamori, Japan’s “holy business”. We believe that only companies with strong muscles and solid internal strength can resist the empire risk and go further.
Earnings forecast and investment advice Considering that the company’s orders are gradually recovering, we believe that the company’s net profit for 2019-2021 will be 1.
45 billion, 1.
9.6 billion and 2.
660,000 yuan, corresponding to 2019-2021 EPS is 0.
67 and 0.
9 yuan, the corresponding PE is 31.
5 and 17.
3 times. Based on the company’s in-depth layout in CPE and automotive electronics, we still give a “Buy” rating.
Risk reminder: trade war exacerbates risks; competition leads to price drop risks