Liangxin Electric (002706) Quarterly Report Comment: Operation Maintains Steady Situation and Continues High R & D Investment

Liangxin Electric (002706) Quarterly Report Comment: Operation Maintains Steady Situation and Continues High R & D Investment
In the first quarter of 2019, the company’s revenue performance increased steadily, and its net profit attributable to its mother was zero.430,000 yuan company released the first quarter of 2019 report: the first quarter of 2019 to achieve operating income3.810,000 yuan (+17 compared with the same period last year).14%), net profit attributable to mother 0.4.3 billion (+7 year-on-year.88%), net profit after deduction is 0.390,000 yuan (+28.44%), with a gross profit margin of 39.61%, an increase of 4 from the previous quarter.36 points.In terms of period costs, financial costs are reduced by 100 per year.49% was due to exchange loss gains due to exchange rate changes.R & D expenses are 0.32 ppm, R & D expenses8.47%, staying at a high level.We believe that the company has achieved a leading position in the field of high-end and low-voltage electrical appliances and is expected to continue to benefit from import substitution in the future.We expect the company’s net profit attributable to its parent to be 2 in 2019-2021.83/3.53/4.46 trillion, corresponding to 0 EPS.36/0.45/0.57 yuan, maintain the “recommended” level. The company continued to develop downstream application customers, and the growth rate of fixed asset investment continued to pick up. The company set up a strategic customer department, focusing on the development of major customers in various industries, and continued to develop downstream customers in intelligent buildings, new energy, traditional industrial control, and information and communication industries.In 2019, the company will continue to focus on the field of low-voltage electrical appliances, continuously improve the product line of terminal appliances, switching appliances, and control appliances, and vigorously develop intelligent low-voltage electrical appliances and smart home products.According to the National Bureau of Statistics, the growth rate of gradually completed 北京夜网 fixed asset investment has been lower than 6% for seven consecutive months since July 2018, and the growth rate rose to 6 around March 2019.30%, the recovery of the macro economy is expected to drive the business back to rapid growth.In the long run, according to CLP data, the installed power generation capacity in the country in 2018 has reached 1.9 billion kilowatts, and the highest annual growth rate during the period of 2016-2018 is 7% -8%.From the macro-scale growth rate of installed capacity, it is consistent with the overall growth rate of the low-voltage electrical industry. The share repurchase program has been implemented, demonstrating the firm confidence of the company’s executives. In October 2018, the company issued an announcement saying that it planned to not exceed 7 within 6 months.The price is 5 yuan / share, and the shares of 1 ppm to 200 million US dollars 杭州桑拿 are repurchased, which are used for the company’s equity incentive plan and employee stock ownership plan to replace the registered capital and other uses permitted by laws and regulations according to law.The repurchase plan shows the company’s executives’ confidence in the company’s future prospects.As of March 31, 2019, the company has repurchased a total of 12,893,708 shares of the company through centralized bidding transactions through a special securities account for stock repurchase, accounting for 1 of the company’s total share capital.64%, with a total payment of 78,933,119.48 yuan (excluding transaction costs). Risk warning: downstream demand risk; intensified competition in the low-voltage electrical industry; risk of fluctuations in raw material prices.

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