Liangxin Electric (002706): Revenue growth picks up as scheduled and future demand is expected to increase

Liangxin Electric (002706): Revenue growth picks up as scheduled and future demand is expected to increase
The revenue growth rate in the single quarter has improved significantly. The non-profit growth has been significantly increased. The company announced the first quarter report for 2019, and the company achieved revenue in the first quarter3.810,000 yuan, an increase of 17 in ten years.14%, year-on-year growth rate increased compared to the fourth quarter of last year.69pct, distorted the trend of gradual slowdown in each quarter since last year.In the first quarter, the company achieved zero net profit attributable to its mother.43 ppm, a ten-year increase of 7.88%, the net profit of non-returned mothers is zero.390,000 yuan, an increase of 28 in ten years.44%. The difference is mainly due to the decrease in government subsidies and investment income received by the company compared with last year. The gross profit margin decreased slightly, and the company with good cost control had a gross profit margin of 39 in the first quarter of 2019.61%, with a ten-year average of 1.21pct, first of all, the company’s first quarter of the new energy power generation product bookings increased, but the gross profit margin of such products decreased. The company’s overall expense ratio was 26 in the first quarter.50%, down 2 each year.04pct, in which the sales expense ratio, management expense ratio and research and development expense ratio decreased by 1.02, 0.49 and 0.43pct, better overall cost control.The company’s R & D expenses in the first quarter were zero.32 ppm, an increase of 11 in ten years.59%, R & D expenses8.47%, R & D has maintained a higher level. Downstream new energy and real estate are progressing better, and future demand is expected to increase. The company’s continued increase in revenue in the first quarter mainly benefited from the improvement of the downstream new energy industry’s prosperity and the continuous increase in large real estate customers.Looking at the future demand, according to the statistics of the Bureau of Statistics, the growth rate of new real estate construction area from January to March 2019 was 11.9%, investment growth rate was 11.8%, leading real estate companies will expand their 北京桑拿洗浴保健 deterministic targets, and the company’s share in key large customers is expected to continue to increase; new energy generation policies are gradually clear, and cost reductions have significantly increased parity projects, and installed capacity is expected to continue to increase;In the start-up year of 5G construction, the company’s communications products are expected to continue to benefit.The company began to build a Haiyan base in 2019, mainly producing components and electronic products, molds, and injection molded parts for low-voltage electrical appliances, which will effectively enhance the company’s overall industrial chain layout and overall profitability. Investment suggestion As a domestic leader in the field of high-end and low-voltage electrical appliances, the gap between the company’s technical level and international brands has gradually narrowed, and the 苏州桑拿网 advantages of prices and services have gradually emerged, and the prospect of domestic substitution is optimistic.We estimate the company’s net profit attributable to its parent to be 2 in 2019-2021.77, 3.37 and 4.160,000 yuan, an increase of 25 in ten years.0%, 21.4% and 23.4%, corresponding to 20, 16 and 13 times the current expected PE.Taking into account the company’s industry category in the domestic mid-to-high-end low-voltage electrical field and the company’s estimated situation in the industry, the company’s compound growth rate for the 2019-2021 three-year period22.5%, giving the company a PEG equal to 1 corresponding to a 23x 2019 valuation, and a reasonable value of 8 was determined.05 yuan / share, maintain “Buy” rating. Risks prompt macroeconomic growth rate; real estate industry policy adjustments; new energy investment is less than expected.