event:The company released its 2018 annual report, which was realized throughout the year.Operating income583 million yuan, an increase of 131.51% over the same period of last year;Net profitIt was about 65.16 million yuan, a year-on-year increase of 32.33%. The company plans to find a gold dividend of 0.97 yuan (including tax) and transfer 3 shares for every 10 shares.
The traditional intelligent equipment industry has grown rapidly, and Bosch orders have dragged down cash flow from operating activities: the company's traditional main business is flexible automation equipment and industry.robotThe system achieved a new signing of 478 million yuan in 2018, an increase of 115 million yuan over 2017, an increase of 31.68%; and an income of 313 million yuan, a year-on-year increase of 24.4%. Business hairinterest rateIt remained stable, at 35.72% in 2018, an increase of 0.02 percentage points from the previous year. The company relies on the extensive experience of cooperation with UMC to cut into the overseas Bosch supply chain. The total order with Bosch in 2018 is about 150 million yuan. We estimate that the proportion of Bosch demand is about 1.2%, and there is room for improvement in the future. The net cash flow from the company's operating activities was 10,567,800 yuan in 2018, a significant decrease of 86.19% from the previous year, mainly due to the supply of Bosch in Germany in 2018. There is no advance payment for Bosch orders, and 90% of the payment is received at the time of delivery. , thus resulting in a net decrease.
Shanghai Zhongyuan's competitive strength has improved significantly, and it has dragged down the overall grossinterest rate: Shanghai Zhongyuan contributed revenue of approximately 269 million yuan in 2018, with a gross margin of 18.71%. Among them, the sales volume of fuel dispensers was 2,507,500, the sales volume of fuel pipes was 1,821,800, and the sales volume of cooling water pipes was 3,588,000. In 2018, the company realized the integration of Shanghai Zhongyuan. As the gross profit margin of auto parts was lower than that of the automated production line business, the company's comprehensive gross profit margin decreased by 7.69 percentage points to 28.01%. With the implementation of the “National Six Standards”, the fuel dispenser will also be transformed from low pressure to high pressure, and the value of the products will also be greatly improved. We expect Shanghai Zhongyuan to become a company.PerformanceGrowth provides the second impetus.
Investment Advice:Due to the delay in the delivery of some of the company's projects, the company's 2018 results were lower than our previous expectations. In view of the company's capacity expansion progress is not as expected, we will reduce the net profit from 2019-2020 from 1.72 yuan to 240 million yuan to 1.21 billion yuan, and the newly added net profit for 2021 is 239 million yuan, corresponding to EPS of 0.73/. 1.09/1.44 yuan, the current stock price corresponds to 46X/31X/23X. Benefit from the increase in the scale of the automotive electronics marketLong andWe are optimistic about the future growth of the company due to the improvement of the domestic flexible automation rate and the layout strategy of integrating the industrial chain through acquisition. Considering that PEG is still less than 1, the “Buy” rating is maintained.
risk warning:Risks concentrated by customers and downstream application industries; acquisition of Zhongyuan integration is less than expected; new business expansion is not risky.
(Article Source:Everbright Securities)