Chint Electric (601877) Semi-annual Report Comment: Steady Performance Growth, Low-Voltage Appliance Leading Competition Continues to Increase
Key points of investment: The company released the 19-year semi-annual report, which reported and realized operating income of 144.
2.8 billion, an annual increase of 21.
22%; realize net profit attributable to shareholders of listed companies.
8.4 billion, an annual increase of 0.
08%; realizing net profit attributable to shareholders of listed companies in place of non-recurring gains and losses17.
$ 29 trillion, an average of 3 per year.
If the impact of the sale of photovoltaic power generation on the net profit base in the same period in 18 years is reduced, the net profit attributable to mothers will gradually increase19.
The company’s performance is in line with our expectations.
Ping An’s point of view: Low-voltage electrical appliances have grown steadily, and their leading competitiveness has continued to increase: The company’s low-voltage electrical appliances business achieved revenue of 86.
42 ppm, an increase of 10 in ten years.
The low-voltage electrical appliance industry has a high degree of prosperity. Driven by the acceleration of downstream real estate construction, and the continuous growth of industrial and commercial construction and infrastructure projects, the industry growth rate is expected to be between 6-8% in 19 years. The company’s low-voltage electrical appliance business growth rate far exceeds the industry average.Highlight the competitiveness of the leader.
Through the promotion of deep distribution, the company’s strength in the distributor channel is constantly increasing. The existing company has 510 core dealers and 4,000 distribution outlets, of which 10 core dealers and 400 secondary distributors were added in the first half of 19, The breadth and depth of channel coverage have been improved.
In addition to maintaining its leading position in the distribution channel, the company also maintained a rapid development momentum in the direct sales channel. The company’s orders from strategic major customers increased by 170%, and the communications industry’s orders continued to increase by nearly 50%.Close cooperation.
It is expected that in the second half of the year, driven by factors such as better industry demand and the accelerated pace of revenue recognition for direct sales, the low-voltage electrical appliance business is expected to maintain a better growth rate.
Comprehensive strategic layout, the overseas market of low-voltage electrical appliances has developed well: The company has established a subsidiary overseas and adhered to the localization strategy to accelerate its penetration into overseas markets. In the first half of the year, the overseas business of low-voltage electrical appliances achieved better growth.
At present, the company has established more than 20 overseas subsidiaries in the Czech, UAE, Vietnam and other countries. Through deep localization, it has steadily established itself in the local market, and its brand awareness and reputation have continued to increase.
At present, the company’s products have been used in Bahrain’s desalination, Iraq’s meter box and other industry projects, in the brand influence on the well-known European and American low-voltage electrical brands.
The photovoltaic business grew rapidly, leading the domestic residential photovoltaic market: the company’s photovoltaic business achieved revenue of 56.
190,000 yuan, an increase of 46 in ten years.
The company’s photovoltaic module business benefited from the increase in overseas demand and the increase in brand influence. Revenue maintained a high growth rate. The average emissions in the European, Middle Eastern, Latin American and Southeast Asian markets exceeded the initial target, which promoted the company’s photovoltaic business operation.Rapid growth.
By leveraging the company’s brand influence and channel resources in the low-voltage electrical industry, the company further improved the channel construction of household photovoltaic business in Zhejiang, Shandong and other provinces. In the first half of 19, the company added a new household photovoltaic installation to the grid and 343MWIt is expected that the installed capacity of continuous consumption scale in the second half of the year is expected to maintain a two-digit growth.
Investment suggestion: The company is a leader in the domestic low-voltage 杭州桑拿网 electrical industry, and has significant advantages in scale and sales channels.
By advancing in-depth distribution and strengthening industry direct sales this year, the market share in the low-voltage electrical appliance industry is expected to increase again.
Photovoltaic business is gradually entering domestic peak season and overseas demand continues to grow, and it is expected that the second half of the year will maintain a rapid growth rate.
We maintain our EPS forecast for the company for 19/20/21 is 2 respectively.
83 yuan, corresponding to the closing price of PE on August 29 were 10.
We maintain the “Recommended” rating.
Risk Warning: 1.
If the macroeconomic aggregate declines, it will lead to a sharp increase in the electricity consumption of the whole society and affect the total demand for low-voltage electrical appliances. 2.
If the prices of major raw materials such as copper, steel, silver, and plastic rise, it will have an impact on the company’s gross profit margin for low-voltage electrical appliances.
If there are conflicting changes in photovoltaic subsidy policies, it may adversely affect the company’s photovoltaic business.