McGmitter (002851) 2019 Third Quarterly Report Review-Revenue Continues to Grow Faster Than Expected Expenses and Better Control of Expenses

McGmitter (002851) 2019 Third Quarterly Report Review-Revenue Continues to Grow Faster Than Expected Expenses and Better Control of Expenses
The company achieved operating income in the first three quarters of 201926.5.2 billion (previously +64.67%), achieving net profit attributable to mothers2.76 trillion (decade +125.1%).The reorganized assets continued to release performance, helping the company grow at a high speed.Maintain the company’s 2019-2021 net profit forecast3.50/4.57/5.7.4 billion.The company has many high-quality circuits, a technology base to enjoy the boom period, and high-speed growth momentum redundant. The reasonable range for 2019 is 35x-40x, and it maintains a “Buy” rating.北京桑拿洗浴 Revenue growth continued to exceed expectations, and the multi-sector boom pattern was verified.The company achieved operating income from January to September 201926.5.2 billion (previously +64.67%), achieving net profit attributable to mothers2.76 trillion (decade +125.1%), in line with the scope of the performance forecast; in the third quarter, it achieved operating income of 9 in a single quarter.920,000 yuan (ten years +71.08%), achieving net profit attributable to mother 1.140,000 yuan (ten years +99.02%).The company’s income end continued to grow at a high rate, further reflecting the company’s diversified layout, using its own technology and product advantages to fully enjoy the high prosperity in many fields. Expenditure has improved markedly, and operating capacity has become apparent.The company reports gross sales margin / net margin 25% / 10.43%, the gross profit margin was affected by the product structure down 4.At the same time of 9 pcs, the company still maintained a basically stable net purity, and its management ability gradually became prominent.Expense end company period expense expense14.22% (year -5.25 pcts), of which sales / management / R & D / financial period expenses3.69% / 1.86% / 8.53% / 0.14%, sales / management / R & D expense ratio decreased by 1.5/1.27/2.82 pcts, financial expenses turned positive due to exchange rate changes, ensuring a stable net interest rate level.Net cash flow from operating activities was 3.49 trillion, +487 a decade ago.55%, the cash-to-cash ratio continued to remain above 1. New energy vehicles continue to grow rapidly, and smart bathrooms are initially improving.In the first three quarters, the company’s new energy vehicles, smart bathrooms, smart welding machines, inverter appliances, and flat panel displays continued to grow rapidly. Among them, the new energy vehicle business has gradually increased by 215% over the same period of the previous year.As the main supplier, the company has no worries about the expected performance of the company. With the gradual clearing of the influence of Xiaomi’s orders in the smart bathroom business in the first half of the year, the company’s production schedule and new customers will gradually be strengthened, and the revenue growth dimension of the segment is expected to be repaired. The acquisition of the remaining equity of Jardine Sanitary Ware was completed, and the core subsidiaries continued to help the company grow rapidly.The company completed the acquisition of Jardine Sanitary Ware, Shenzhen Driven, and Shenzhen controlled minority equity in September 2018. On October 30, the company announced the completion of the acquisition of the remaining minority shareholders’ interests of Jardine Sanitary Ware and completed the registration of industrial and commercial changes.the company.The performance commitments of the three subsidiaries for 2019 are 95 million / 70 million yuan / 18 million yuan respectively. As of H1 2019, the above-mentioned subsidiaries have realized net profit of 32.67 trillion yuan / 73.873 million yuan respectively. The revenue of the smart bathroom sector continues to be repaired.Can fulfill preliminary performance commitments. Risk factors: New energy vehicle production and sales are less than expected; risks of international trade friction; optional consumer demand is weak; inventory prices fall; new business expansion is less than expected. Investment suggestion: The company establishes a diversified business layout based on high-tech collaboration and accumulation. It faces multiple industries with large downstream space and high prosperity. The long-term development momentum is sufficient and the space is large. Maintain the company’s net profit forecast for 2019-2021.50/4.57/5.74 million, corresponding to 2019/2020/2021 EPS forecast is 0.75/0.97/1.22 yuan, corresponding to the current expected PE of 26x / 20x / 16x, we think the company’s reasonable range for 2019 is 35x-40x PE, maintaining the “Buy” rating.

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