Kangli Elevator (002367): Net profit margin returns significantly and profitability continues to be repaired
Kangli Elevator Announces Third Quarter Report 19: Operating Income 27.
2 billion, 19 years growth.
8%; net profit attributable to mother 2.
1.0 billion, a year-on-year increase of 224%; net profit attributable to mothers in 19 years2.
600 million, fully in line with the expectations of our air force.
Net profit is expected to be 2 in 19-20.
5.3 billion / 3.
4.2 billion, corresponding to PE is 27 times / 20 times, the industry’s margins are improving, turning point in 19 years, the performance of the next year is flexible, and upgraded to “strongly recommended-A” rating.
Net interest rate rebounded significantly, and profitability continued to repair.
Revenue for the first three quarters of 1927.
200 million (+19.
81%), net profit attributable to mother 200 million (+ 224%), of which Q3 net profit attributable to mother in single quarter was 98 million (+ 354%).
The first lies in: (1) Gross profit margin, net profit margin continued to rise, and profitability was significantly repaired: Q3 gross profit margin was 29.
5%, an increase of 3 per year.
7pct, net interest rate 7.
4%, an increase of 4 per year.
5pct, mainly because ① the company’s previous control of the product’s sales price decline has shown a certain effect, compared with the same period last year, manufacturing costs have decreased, and as steel prices fell, the company negotiated with suppliers to achieve a certain rangeThe price of purchased parts was adjusted, so that the price of raw materials fell to the cost of main raw materials and the cost of purchased parts.
(2) The sales and management expense ratios were further reduced, and Q3 non-recurring income totaled 39 million: the first three quarters benefited from the company’s refined expense management and the sales expense ratio was 11.
8%, a decrease of 3 per year.
8pct, management expense ratio 7.
6%, reduced by 0 every year.
6pct; Q3 net operating cash flow 2.
1 trillion, little change in one year; due to receiving 1371.
Government subsidies of RMB 60,000 and gains from disposal of wealth management products of the company321.
60,000 yuan, the company’s net cash flow from investment activities4.
3 billion, a previous significant increase of 48.
Orders in hand maintained a 12% growth.
As of the end of the third quarter of 19, the company is executing 58 effective orders.
US $ 4.4 billion (excluding the Beijing New Airport Section of the Intercity Railway Tie Line, which has not won the bid but received a deposit, and a total of 5 from Beijing to Zhangjiakou Railway).
Affected by the 天津夜网 loose currency in the first half of the year and the improvement of the actual completion, the company’s shipment volume has maintained a higher growth. Since the fourth quarter of 2018, orders have started to rebound, and it has maintained a certain level of growth. The number of replacements will continue to increase, and the scale effect willContinue to appear.
The company actively deploys elevators for people’s livelihood in old buildings, which is in line with the general direction of the elevator industry.
Kangli’s wholly-owned subsidiary “Happiness Plus Elevator” is currently using single-elevator sales, dual-engineering business model for the market, and develops an agent system. Through independent engineering and cooperative development projects, construction is being carried out in Beijing, Chengde, Jinan and 苏州夜网论坛 other places.There is a model project of adding elevators to happiness, and newly launched elevator selection products for the elevator market of existing buildings in existing buildings.
The industry inflection point improved in 19 years, the market structure improved significantly, and the price stopped the decline, and gradually improved in 20 years.
Fundamentally, the “disordered competition and price war” is getting worse. Due to the lack of long-term development strategic planning, some machines often deviate from the management and control of the supply chain and focus on pure price competition. Therefore, these elevator companies have not formed R & D., A virtuous circle of production and sales.
Many elevator companies lack the technology and conditions for upstream elevator parts production, the industry is down and the profit space is further compressed. At the same time, the bargaining power of large upstream elevator parts suppliers is also weak, which further weakens the elevator companies’ technological innovation capabilities.A vicious circle has formed.The industry’s overall gross profit margin in 18 years, the net profit rate hit a record low over the years, and even the industry giants have fallen into a “trough pain period.”The operation of the industry also promotes the continued improvement of the industry structure.
In-industry research understands that the current industry prices have generally stopped the decline.
Continue to recommend Kangli Elevator and upgrade it to “Highly Recommended-A”.
The profit recovery brought about by the “scale effect + improvement of the pattern” will continue. The elevator is expected to start a three-year industry boom cycle. At present, the biggest risk comes from the cost side (steel and rare earth prices).
19 years has been a turning point in the performance of the elevator industry, and renewal demand in the next few years will lengthen the boom cycle, until the company has orders 58 in hand on September 30.
400 million, a previous increase of 12%, also verified this judgment.
Net profit of Kangli Elevator is expected to be 2 in 19-20.
500 million / 3.
400 million, corresponding to PE is 27 times / 20 times, raised to “strongly recommended-A” level.
Risk reminders: (1) Steel price increase: The main raw material of elevators is steel. If the price of steel rises, it will significantly affect the gross profit of the product; (2) Rare earth price fluctuation risk: the remaining is the main raw materials of elevator key components traction machinePrice (3) The growth rate of real estate is lower than expected: Real estate is still the largest downstream of the elevator industry. If the real estate completion area exceeds too quickly, it will significantly affect elevator demand.
(4) Asset impairment losses.