Chint Electric (601877) 2018 Annual Report Comments： Performance Meets Expectations ROE Steadily Picks Up
Chint Electric (601877) 2018 Annual Report Comments: Performance Meets Expectations ROE Steadily Picks Up
The 18-year performance was in line with expectations, and 19Q1 continued to grow rapidly: the company released the 2018 annual report and the 2019 first quarter report, and achieved 274 revenue in 2018.
21 ppm, an increase of 17 in ten years.
10%; net profit attributable to mother is 35.
92 ppm, an increase of 26 in ten years.
47%; net profit after deduction is 36.
54 ppm, an increase of 38 in ten years.
81%; earnings per share is 1.
At the same time, the company announced the 2018 dividend distribution plan, which is intended to pay 6 yuan (including tax) for every 10 shares.
In the first quarter of 2019, the company achieved revenue of 59.
95 ppm, an increase of 17 in ten years.
66%; net profit attributable to mother 5.
USD 4.2 billion, after deducting 18Q1 power station transfers, it will grow by 22 per year.
The low-voltage main business continues to grow steadily, and the market share is expected to increase rapidly: The company has more than 100 series and 10,000 low-voltage electrical products with various specifications.
Affected by the growth of the macroeconomic and the entire society’s electricity consumption, the company’s low-voltage electrical appliance business in 2018 achieved operating income of 172.
47 ppm, an increase of 17 in ten years.
The company has the most competitive advantage in the dealer network. By the end of 2018, the company had 16 offices, 500 core core dealers, and more than 3,600 distribution outlets.
Through the company’s enhanced direct sales model, it has continuously developed well-known customers in many fields such as State Grid, China Southern Power Grid, China Mobile, Huawei, and China Resources, which will help consolidate the company’s performance growth potential.
In addition, the company’s low-voltage business overseas revenue 19.
3.5 billion, an annual increase of 23.
21%, accounting for 11.
50%, the company actively expands the “Belt and Road”, accelerates the overseas market layout, moves from catching up with overseas brands to surpassing foreign brands, and will seize more global market share in the future.
The photovoltaic business has grown against the trend and adheres to the global strategic layout: as disclosed in the annual report, the company currently has photovoltaic cell and module production capacity at the manufacturing end of 2GW and 2 respectively.
5GW, the scale of the equity of the operating power plant is about 3GW.
In 2018, the company’s main business volume and quality achieved an average growth against the trend, and component sales volume3.
At 1GW, the EPC development volume was 661MW, and the diversified development volume was 974MW, all hitting a record high.
Initial new energy business realized revenue and net profit of 107 respectively.
RMB 10,000 (18.
66%) and 13.
4.3 billion (48% year-on-year.
20%), component manufacturing, power plant operation, EPC business revenue accounted for 60%.
The company continued to cultivate overseas for more than ten years, and continued to establish and continue the company’s brand image of the first echelon supplier of global components.
The development of 40MW projects was completed in the second half of 2018. The EPC business in Japan and South Korea grew steadily, and projects under development in the global layout exceeded 1GW. Stable operation and continuous improvement of profitability: The company’s operation is stable, and the compound length of revenue and net profit since listing in 2010 reached 20% and 23 respectively.
Strong channel + high turnover, so the company’s main financial indicators such as turnover days, cash flow, asset-liability ratio are higher than their peers, and the profit quality is excellent.
The company’s gross profit margin in 2018 reached 29.
67%, an increase of 0 a year.
35 cases; net margin is 13.
72%, a year to raise 0.
93%, the company’s profitability has been steadily improved.
As the company’s profitability continues to rise, the photovoltaic plant’s asset quality optimization and overall operating efficiency increase, the company’s ROE level in 2018 reached 16.
59%, an increase of 2 a year.
38%, starting the upward turning point trend, is expected to return to more than 20% in the future.
Investment suggestion: Maintain the company’s Buy-A rating and target price of 38.
The company’s revenue growth rate is expected to be 14 in 2019-2021.
07%; Net profit is 43.
800 million, a growth rate of 19.
74% / 20.
34% / 17.
44%, corresponding 南京桑拿网 to an EPS of 2.
Maintain the company’s Buy-A rating and 6-month target price of 38.
Risk warning: macroeconomic downside risks, upstream raw material prices rising, overseas business expansion exceeding expectations, photovoltaic module prices rising.