Zhonghe Technology (000925): 1H19 performance is in line with expectations The localization of the signal system is progressing smoothly
The first half of 2019 results are in line with our expectations. Zhonghe Technology announced the first half of 2019 results: operating income10.
50,000 yuan, an increase of 31 in ten years.
8%; the net profit attributable to the parent company is 24.74 million yuan, an 北京夜网 annual increase of 51.
0%, in line with the company’s air force performance forecast.
The main reason for the increase in performance was the growth in the business of rail transit signal systems and automatic ticket sales systems.
The income structure has changed, but the overall gross profit margin has remained flat.
In 1H19, the company ‘s revenue from smart transportation business, which has a relatively high gross profit margin, increased by 74 per year.
6% to 6.
7 ‰, but gross margin decreased by 5 compared with the previous year.
7ppt to 31.
1%; revenue from energy conservation and environmental protection business declines by 8 per year.
7% to 3.
7 ppm, while gross margin increased by 4.
5ppt to 26.
Overall, the company’s comprehensive gross profit margin was 29 in the first half of the year.
6%, a slight increase of 0 compared with the same period last year.
The decrease in financial expenses led to a decline in expense ratios and a slight increase in net profit margin.
In the first half of the year, the company’s sales / management / R & D / financial expense ratios were -0.
2 / + 0.
3 / -0.
9 / -2.
5ppt, the overall expense ratio decreased by 3 compared with the same period last year.
3ppt, the company’s net profit margin rose slightly.
3ppt to 2.
Net cash transparency of operating activities 2.
40,000 yuan, a decrease of 0 over the same period last year.
Development trend 1H19 The new millennium alone maintained rapid growth.
1H19 company’s new highway alone reached 20.
700 million, an increase of 45% over the same period last year.
Of which: Rail Transit Order 14.
4 ‰, an increase of 44% in ten years, water treatment single 5 in the new two years.
3 ‰, a 47% increase in ten years, the semiconductor business in the new year single 0.
78 trillion, basically the same as last year.
The independently developed signal system performed brilliantly.14 in the new sign.
In the 4 mega rail delivery order, the signal system is 13.
100 million US dollars, an actual increase of 123% during the ten-year period; of which the domestically developed signal system independently developed by the company was the new millennium single 9 in the first half of the year.
9 ppm, accounting for 78% of the new signal system contract value, up from 74% before 2018.
The environmental protection business is expected to improve in the future.
Suzhou Kehuan, a subsidiary of the company, achieved a net profit of 31.44 million yuan in the first half of the year and added new contracts3.
At the same time, various businesses of its subsidiary, Haituo Environment, are progressing smoothly, of which the new vertical order in the engineering business in the first half of the year has completed the company’s expected goals.
Earnings forecasts and estimates We maintain the company’s 2019/2020 earnings forecasts unchanged, and the company currently expects to correspond to 23/2019/20.
1 and 18.
7x P / E.
We maintain a neutral rating of 7.
The target price of 20 yuan corresponds to 26 times the 2019 P / E ratio and 21 2020 P / E ratio, which is 12.
Risk subsidiary’s performance growth does not meet expectations, withdraw goodwill impairment