McGmitter (002851) Annual Report 2018 Review: Return to High-Growth Emerging Business and Issue Multi-Level Driving Forces

McGmitter (002851) Annual Report 2018 Review: Return to High-Growth Emerging Business and Issue Multi-Level Driving Forces
Investment Highlights The company released its 2018 杭州桑拿 annual report: operating income was 23.94 ppm, an increase of 60 in ten years.17%; net profit attributable to mother is 2.20,000 yuan, an increase of 72 in ten years.66%, revenue and performance are in line with market expectations. Equity incentives and restructurings have affected the actual performance growth rate. The slight fluctuations in gross profit margin are due to changes in income structure.Exclude the impact of fair incentives and restructuring costs (costs totaled 0.3.7 billion), with a performance growth rate of 82%; excluding the effect of thickening performance caused by asset restructuring (actual performance 1).4.9 billion), with a growth rate of 28%.The company’s gross profit margin for 18 years1.77pct to 29.49%, due to low gross margin products such as inverter air conditioner controllers, and the rapid growth 深圳桑拿网 of new energy vehicle PEUs has led to changes in revenue structure. New energy, rail transit and smart home appliances are growing rapidly, and industrial automation and industrial power are increasing.In 2018, the growth rates of new energy & rail transit, smart home appliances, industrial automation and industrial power supply were 366% / 50% / 3% / 11% respectively; gross profit margins changed by +3.14 / -3.03 / -1.92/4.15pct, of which the gross margin of electronic appliances for smart appliances is relatively high. R & D efforts are leading in the industry, and operating cash flow needs to be improved.In 2018, the company continued to insist on high R & D investment, with the same increase in R & D expenses by 43% and R & D ratio of 10.52%, leading in the industry; the scale of operating cash flow has continued to expand due to the rapid growth of new energy vehicle electric drive business with extended repayment periods. Emerging businesses with a forward-looking layout will continue to exchange growth drivers.In 2018, the company’s forward-looking layout of intelligent welding machines, intelligent oil extraction equipment and other products has formed large-scale revenue. In the future, it will work with electric shockers and electronic cigarettes to contribute to the company’s continuous and stable growth driving force. Investment suggestion: Based on the core technology platform, the company continuously promotes the strategy of “horizontal enlargement and preliminary strengthening”. The smart bathroom and new energy vehicle business has a rapid growth momentum. Emerging businesses such as intelligent oil extraction and intelligent welding machines continue to generate multi-level growth.We have adjusted our profit forecast and expect the company’s net profit for 2019-2021 to be 2.91/4.03/5.38 trillion, EPS is 0.93/1.29/1.72, corresponding to the closing price PE of April 18, 2019 were 35.5/25.7/19.2x, maintain prudent overweight rating. Risk warning: downstream renewal is less than expected, overseas market expansion is less than expected, market competition is intensified