Guo Rui Technology (600562) 2019 Interim Report Review: Flat Revenue, Sales Expenses and Management Expenses Increased, Leading to Net Profit Increase

Home / Guo Rui Technology (600562) 2019 Interim Report Review: Flat Revenue, Sales Expenses and Management Expenses Increased, Leading to Net Profit Increase

Guo Rui Technology (6北京夜网 00562) 2019 Interim Report Review: Flat Revenue, Sales Expenses and Management Expenses Increased, Leading to Net Profit Increase

Investment Highlights The company released its 2019 Interim Report: Revenue 4.

62 ppm, an increase of ten years.

48%; net profit attributable to mother is 19.84 million, divided by 16.

33%; net profit after deduction is 1624 million, 21 in a row.

53%; non-recurring gains and losses of 3.6 million yuan, of which 4.31 million yuan was subsidized by the government.

  According to the main business of 2019H1, the revenue of microwave module business increased significantly, and radar-related systems, rail transit control systems and special power supplies were excluded to varying degrees.

Guorui Microwave and Guorui Zhaofu’s subsidiaries contributed major profits in the first half of the year.

The radar-related system was 97.09 million yuan, a slight decrease of 1 every year.

33%, realized a net profit of 6.42 million yuan, a decrease of 28 per year.

63%; Rail transit system revenue1.

65 ppm, a reduction of 31 per year.

56%, realized a net profit of -5.26 million yuan, a loss of 4.94 million yuan in the same period last year.

Enrut’s subsidiaries contributed 5 of the first half of the net profit.

8%.

Microwave module business revenue 1.

66 ppm, an increase of 152 in ten years.

35%, achieved a net profit of 5.85 million yuan, accounting for 29 of the company’s net profit in the first half of the year.

5%.

The revenue of special power supply business was 34.29 million yuan, a decrease of 31 per year.

63%; realized a net profit of 12.83 million yuan, a year-on-year decrease of 31.

02%, accounting for 64 of the company’s first half net profit.

6%.

2019H1 company gross profit margin 19.

86%, a slight increase of 0 every year.

32pct; gross profit of 91.8 million yuan, an increase of 3 every year.

14%.

The sharp increase in selling expenses and management expenses became the main factors for the replacement of net profit in the first half of the year.

  The injection of assets has been approved by the National Defense Science and Industry Bureau; the establishment of the China Power Guoruizi Group will continue to be expected in the future.

  We maintain our profit forecast for the company, and we expect the company to achieve net profit attributable to mothers in 2019-2021.

95/1.

18/1.

42 trillion, corresponding to the closing price of PE on August 26 is 100/80/67 杭州夜网times.

After considering the completion of this injection, the company’s total net profit attributable to the parent for 2019-2021 will be 4.

54/5.

11/5.

8.5 billion.

Regardless of supporting financing, the company’s total share capital after the completion of the transaction12.

01 shares, the current sustainable corresponding market value is 18.4 billion, corresponding to PE is 41/36/31 times; assuming that the shares are issued at the current price of 600 million US dollars, after the completion of the company’s corresponding market value of 19 billion, corresponding to PE is 42/37/32 times.Maintain the level of “prudent overweight”.

  Risk reminder: competition in the civilian products market is intensifying, and gross profit margins are growing; military purchases are lower than expected.

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