Kangli Elevator (002367): H1 sales increase significantly benefit from post real estate cycle

Kangli Elevator (002367): H1 sales increase significantly benefit from post real estate cycle

Event 1: The company’s 2019H1 revenue was 17.

4.0 billion, previously +17.

54%; net profit attributable to mother 1.

3.0 billion, previously + 154%; deducted non-attributed net profit 0.

7.6 billion, previously + 2358%.

Event 2: The company expects Q1-Q3 to realize net profit attributable to mother 1.

8-2.

100 million, previously + 190% -240%; of which Q3 single quarter net profit attributable to mother.

9.5 billion-1.

0.6 billion, previously + 340% -390%.

The main points of investment benefit from the post-land cycle + increase in order conversion rate. Semi-annual revenue hits the first half of the company ‘s revenue in recent years. The net profit attributable to mothers has gradually increased, mainly due to the increase in the conversion rate of orders in hand.And the acceleration of national infrastructure rail transit projects.

In terms of products, elevator revenue was 10.

200 million (+27.

4%), escalator revenue 3.

300 million (-6.

8%), parts revenue 1.

5 billion (+28.

6%), install maintenance revenue1.

700 million (+9.

4%).

Elevator business revenue increased significantly.

In general, according to the growth rate of construction area and completion area, we judge that a large number of houses are currently at the end of construction, that is, the installation period of the elevator, and the elevator growth cycle has arrived.

At the same time, the introduction of new residential regulations is expected to further accelerate the release of trillions of market space; the company ‘s wholly-owned subsidiary, “Happiness Plus Elevator”, laid out the old building retrofit market in advance and achieved revenue of 13.71 million in the first half of the year, trying to significantly benefit from the old home plusEquipment market.

In terms of escalators, rail transportation is the main source of escalator demand.

In the first half of 2019, the company gradually won a number of bids for electricity and escalator projects in the public transportation field, and the total amount of bids reached 4.

5.6 billion.

We expect the completion of the winning project in the second half of the year, and the company’s escalator revenue will pick up.

As of June 30, 2019, the company is executing 56 active orders.

7.5 billion (excluding 4).

5.4 billion orders won but did not receive a deposit), the size of orders in hand increased by 12% from the same period last year. Based on the current order conversion rate and elevator acceptance cycle, we expect these orders to confirm revenue this year and next.

The net profit margin has increased significantly, and the expense ratio is well controlled.

84%, ten years +2.

08 points.

In terms of products, the gross profit margins of elevators, escalators, parts and components, installation and maintenance were 30.

46% / 27.

68% / 12.

94% / 31.

99%, +1.84 points / +2.

47 points / + 1.

38 points / + 3.

71 points.

Since the fourth quarter of 2018, the cost of steel-related raw materials has decreased, and this impact has a certain lag.

2019H1 net profit 6.

02% (+ 3.

23 pct), the growth rate contracted, mainly due to the substantial decrease in the expense ratio during the period3.

29 points to 20.

63%.

The selling expense ratio is 12.

48% (-2.

91pct), a decline in breakthrough, mainly benefited from enhanced marketing management and proper cost control.

Management and R & D expense ratio 8.

08% (-0.

51pct); financial expenses account for 0%.

07% (+0.

13pct), mainly due to the increase in bank acceptance bills, discounted income and expenses, and increased exchange losses.

Operating cash flow improved, 四川耍耍网 and inventory and receivables increased. H1 operating cash flow for 2019 was 0.

6.2 billion, an increase of 0 every year.

800 million, mainly due to the increase in cash received during the period from the sale of goods and the provision of labor services in the same period last year.

The amount of advances received at the end of the reporting period was 9.

300 million, an increase of 1 over the same period last year.

800 million; inventory at the end of the period is 900 million, increasing by 1 every year.

8 billion.

The increase in the amount of advance receipts and inventories indicates that the company is continuously increasing the number of orders it executes and that its recognizable revenue will increase significantly in the future.

Profit forecast and investment grade: We expect the company’s 深圳桑拿网 net profit for 2019-2021 to be 2 respectively.

6/3.

2/3.

5 ppm, corresponding to the current sustainable PE of 25/20 / 18X, maintaining the “overweight” level.

Risk warning: The elevator market is fiercely competitive, raw material prices are rising, and the actual completion area is picking up below expectations.