Jiechang Drive (603583): Consolidation of profitability and continuous high growth can be expected

Jiechang Drive (603583): Consolidation of profitability and continuous high growth can be expected

High income and profit growth, export “rushing” has an impact, but market demand is the main cause.

The company achieved revenue in 201811.

1.6 billion, a year-on-year increase of 60%, realizing net profit after deducting non-attribution2.

USD 500 million, with a previous increase of 63%; the first quarter of 2019 continued to maintain a rapid growth trend, achieving revenue growth of more than 50% and net profit of more than 40%; even if it cannot replace the United StatesThe expectation of tariff levy will lead to “rushing”, but we believe that market demand is the main reason driving the company’s revenue growth.

ROE, gross profit margin continues to double high, stable profitability, cost control is an important consideration for future competition.

The company’s diluted ROE was 16% in 2018. Considering that the company’s listed financing and net assets have doubled, the company’s actual profitability has maintained a high level; the company’s gross profit margin in 2018 was 42.

06%, 2 more than in 2017.

The decline in 9 quantities is mainly related to product price adjustments and rising raw material costs; in addition to the technical level of products, cost control capabilities are an important consideration for linearly driving competition among companies. In the first quarter of 2019, the 无锡夜网 company’s gross profit margin was unchanged from 2018However, due to some exchange losses caused by RMB appreciation and other factors, resulting in a slight decline in net interest rate, we believe that the company’s profitability in the future will help maintain stability.

The negative operating cash flow in the first quarter was mainly due to the rapid development of the business, and the short-term cash flow was worry-free.

The company recognized revenue in the first quarter2.

8.1 billion, but received cash for sales of goods and services3.

5.7 billion, the collection status is better, but because the company’s business is developing rapidly, the cash for purchasing goods (purchasing) can be about 2.

6 billion, the balance sheet reflects the growth of inventories and prepayments, indicating that the company’s business 无锡桑拿网 is still in rapid development, the company’s current book cash is abundant, and short-term cash flow is worry-free.

The industry has huge space and is optimistic about the company’s long-term development.

The company is currently the only listed company in the domestic linear drive industry. It is expected to achieve rapid development in response to the growth trend of the North American elevator market. The domestic vertical vertical market is still in its infancy and is a new position for long-term growth of the company.It is also actively planning the medical, pension, rehabilitation, and smart furniture markets.

Profit forecast and estimation.

We expect the company to achieve net profit attributable to mothers in 2019-2021.

400,000 yuan, 4.

300,000 yuan, 5.

3.8 billion, with EPS of 2.

8, 3.

5, 4.

4 yuan / share, corresponding to the current maximum PE is 25.

3, 20.

0 and 16.

0 times.

Maintain the “overweight” rating.

Risk warning: The growth of demand from major customers in North America is less than expected, and exchange rate changes drag down performance.