Cree Electromechanical (603960) Semi-annual Report of 2019 Review: A New Chapter in Deep Ploughing and Developing Diversified Layout
The company’s performance achieved high growth in the first half of the year.
In 2019H1, the company realized revenue 3.
500 million, an increase of 45 in five years.
3%; net profit attributable to mother is 0.
50,000 yuan, an increase of 62 in ten years.
6%; net profit after deduction is 0.
4 ‰, an increase of 53 in ten years.
Benefiting from the smooth delivery of Bosch-based orders, the conversion of downstream manufacturers’ national 5 standards to national 6 standards, and the impact of the consolidation of Shanghai Zhongyuan, the company’s revenue and return to net profit in the first half of the year both achieved rapid growth.
In the second quarter, the company achieved revenue1.
90,000 yuan, an increase of 28 in ten years.
8%; net profit attributable to mother is 0.
20,000 yuan, an increase of 63 in ten years.
The second quarter results are still beautiful.
In the first half of the year, the company’s flexible automation equipment and industrial robot systems business was new in the first half of the year.
70 ppm, a decrease every year, and corresponding customer orders are expected to be released in the second half of the year.
The newly signed contracts are mainly concentrated in the fields of new energy automotive electronics (motors, electrical controls, energy recovery, etc.), automotive interiors, optical communications and 5G wireless communications.
Profitability has improved, and cash flow has improved significantly.
In 2019H1, the company’s gross profit margin was 28.
7%, reduced by 0 every year.
01pct, but an increase of 0 compared to 2018.
7pct; net interest rate is 15.
8%, increase by 1 every year.
7pct; ROE up to 8.
8%, an increase of 2 per year.
The sales expense ratio / management expense ratio (including R & D) / financial expense ratio increased by -0 respectively.
The company’s expense ratio was well controlled, gross profit margin remained stable, and net profit increased 厦门夜网 slightly.
In the first half of the year, the company’s net cash flow from operating activities reached 5,393.
80,000 yuan, a significant increase of 5337 per year.
80,000 yuan, the company’s sales receipts increased significantly, and cash flow conditions have improved significantly.
R & D continued to be heavily invested, and new areas of deployment were beginning to bear fruit.
In the first half of the year, the company’s R & D expenses reached 1,807.
30,000 yuan, an annual increase of 94.4%, accounting for 5% of revenue.
While deepening and making breakthroughs in key areas of automotive electronics, the company has achieved initial results in the layout of new areas.
1) Part of the company’s IGBT module packaging test technology has been successfully applied to the PM4 project of United Automotive 天津夜网 Electronics.
2) The company successfully developed the field of assembly and testing of high-end complete sets of drive motor controllers for new energy vehicles, and obtained the latest product orders from the Bosch Group. It has achieved an order of magnitude leap in the scale of production lines and output value.
The company actively develops driverless related equipment technologies, successfully develops functional test and fatigue endurance test benches, and has created conditions for the progressive development of driverless car control electronics.
3) In the automotive interior parts industry, the company vigorously promotes the application of robotic automation and intelligent production technology, and has achieved independent research and development of small joint non-standard robot batch engineering applications in the field of seat production.
4) The company actively expands the field of optical communication and 5G wireless communication, and the equipment developed has been supplied to Finisar, a well-known manufacturer of optical communication devices worldwide.
Investment suggestion: The company is a national leader in automotive electronics equipment.
We expect the company’s expected earnings in 2019/2020 to be 0.
85 yuan, the current sustainable corresponding PE is 47.
4x, maintaining the company’s “recommended” rating.
Risk reminders: macroeconomic growth rate; decline in industry prosperity; high customer concentration; intensified market competition; less-than-expected technological transformation; lower-than-expected performance and so on.