Depth * Company * Liling Power (600452): Continuously high performance and focus on subsequent capital expenditures
The company released its 2019 Interim Report with a 58% increase in profit.
36% met expectations.
The company’s energy-saving business is operating well, and subsequent high capital expenditure growth is expected to drive continued performance upwards; maintain an overweight rating.
The main points supporting the rating The profit growth of 58% in the first half was in line with expectations: The company released its 2019 Interim Report and achieved operating income of 12 in the first half.
40 ppm, an increase of 13 in ten years.
75%; realize net profit attributable to listed shareholders.
950,000 yuan, an increase of 58 in ten years.
36%; deduct non-profit 1.
0.94 million yuan, an increase of 59 in ten years.
In Q2 2019, the company realized a profit of 98.88 million yuan, a year-on-year increase of 深圳桑拿网 61.
25%, an increase of 2 from the previous quarter.
Company performance is in line with our and market expectations.
The energy-saving business of the distribution network continued to provide performance increase: Driven by energy-saving projects completed in the second half of last year, such as Yantai, Qingdao, Shandong Province, Hubei Edong, and Fujian Phase II, the company’s energy distribution network energy-saving business realized revenue in the first half.
77 ppm, an increase of 25 per year.
66%; gross profit margin increased by 2.
79 up to 35.
We judge that the energy saving business contributed about 1 in the first half of the year.
5 trillion, maintaining a good and stable operating condition as a whole.
The power business remained stable and the cost level decreased: the company’s traditional electricity sales business achieved revenue in the first half of the year6.
58 ppm, an increase of 5 in ten years.
05%; gross profit margin 6.
84%, a slight decrease of 0 a year.
In terms of expenses, during the first half of the year, the company’s expense ratio increased by 0.
49 up to 5.
19%, of which management (including research and development) expense ratio fell 0 year-on-year.
Concerned about the implementation of capital expenditures: The company signed new orders for Xinjiang Phase II, Ningxia, and Zhejiang Phase II in energy-saving business in 2018, totaling more than 1.3 billion U.S. dollars, and the current order amount is about 10 billion U.S. dollars.
The company’s capital expenditure on energy saving business plans for switching networks in 201915.
13 ppm, an increase of 48 in ten years.
92%; but from the perspective of the interim report, there were not a lot of energy-saving projects under construction in the first half of the year. We expect to gradually transfer the second phase of Henan, Hubei and other projects to continue construction and further increase in orders.Continue to maintain steady growth.
We estimate that the company’s estimated earnings for 2019-2021 will be 1.
75 yuan, corresponding to a price-earnings ratio of 12.1/10.
9 times; maintaining overweight rating.
The main risks faced by the rating are the expected income distribution of energy-saving projects in distribution networks; the slower-than-expected progress of the new project landing; the slower-than-expected progress of the project construction;