Huaguang (600475): Performance basically meets expected profitability has increased

03/11/2020 0 Comment

Huaguang (600475): Performance basically meets expected profitability has increased

The 1-3Q performance was basically in line with our expectation. The company issued 1-3Q results and reported that the leading company realized operating income of 47.

86 ‰, a decrease of 9 per year.

58%; net profit attributable to parent company3.

37 ppm, an increase of 3 per year.


The corresponding EPS is 0.

6 yuan.

In the third quarter, it achieved operating income of 10.

28 ppm, a decrease of 39 per year.

42%; Net profit attributable to parent company is 0.

49 trillion, down 21 a year.


We believe that the overall performance is basically in line with our expectations. The 3Q performance is mainly due to the recognition of income rhythm factors. Historically, 3Q is in a relatively off-season, so we maintain our profit forecast and target price.

Revenue trend: We expect that environmental engineering and service projects will continue to land and the rest of the business will be relatively stable.

Among the company’s main businesses, boiler manufacturing, environmental engineering and services, local energy supply, and power station engineering and services account for 44%, 29%, 21%, and 9% of revenue, respectively (calculated based on 1H19 data).

Among them, in recent years, the proportion of boiler manufacturing and local energy supply business has 重庆耍耍网 been relatively stable, the proportion of environmental engineering and services has increased, and the proportion of power plant engineering and services has declined.

We believe that the company’s general contracting business is gradually transforming from power generation to municipal engineering. The company has established a waste incineration power generation entire industry chain platform. It is currently in a period of rapid growth in performance of the project’s gradual commissioning.

06 million yuan, the future segment is expected to continue to drive the company’s performance.

Profit side: The average of gross profit margin, expense ratio and net interest rate rose, and the overall profitability was enhanced.

Company 3Q gross profit margin 19.

2%, an increase of 4 per year.

3ppt, up 5 from the previous 合肥夜网 month.

3ppt, profitability has improved; and the time for revenue growth has prolonged, resulting in the company’s 3Q sales, management, and R & D expense ratios of 2 respectively.

4%, 10.

1%, 3.

7%, respectively, rose 0 from the same period last year.

5ppt, 4.

3ppt, 1.

7ppt; under the overall effect, the company’s 3Q net profit reached 4.

8%, an increase of 1 per year.

1ppt, down 1 from the previous month.

0ppt, the company’s overall profitability has been enhanced, 4Q net profit is expected to improve revenue recognition and achieve better growth.

Earnings forecasts and estimates We maintain 2019/20204.

52 ‰ / 4.

71 trillion net profit is expected to remain unchanged.

The company’s current consensus corresponds to December 2019/2020.

9 times / 12.

4x price-earnings ratio.We maintain our Outperform rating and 13.

A target price of 00 yuan corresponds to 16.

1x 2019 P / E ratio and 15.

4 times 2020 price-earnings ratio, compared with the recent inclusion of 24.

5% upside.

Risk market competition has intensified, raw material prices fluctuated more than expected, and revenue recognition progress has fallen short of expectations.