Ocean King (002724) Company’s Third Quarterly Report Review: Performance Meets Expected Profitability Continues to Improve

I. Event Overview Event: Recently, the company released three quarterly reports: revenue from January to September 8.

870,000 yuan, an increase of 10 in ten years.

7%, net profit attributable to mother 1.

40,000 yuan, an increase of 30 in ten years.

2%, net profit after deduction is 80.04 million yuan, an annual increase of 47.


Second, the analysis and judgment of Q3 results are in line with expectations, and the continued improvement of profitability is in line with our previous judgments.

Q3 single quarter revenue 3.

37 ppm, a ten-year increase of 8.

5%, an increase of 13.

1%, net profit attributable to mother is 64.3 million yuan, an annual increase of 38.

9%, an increase of 246.

2%, net profit after deduction is 58.39 million yuan, an annual increase of 62.


Q3 single-quarter gross margin was 74.

4%, ten years +4.

8pct, QoQ + 13pct; Q3 single quarter net profit 19.

1%, ten years +4.

2pct, +12.

8 points.

The performance growth mainly benefited from: the optimization and integration of product structure and the use of new technologies, the gross profit margin expansion significantly increased; the scale effect continued to appear, and profitability continued to improve.

Leading supplier of special lighting, transforming to “lighting + Internet” The company’s products involve three major series of fixed lighting equipment, mobile lighting equipment and portable lighting equipment, including more than 200 models, which can meet the requirements of, Strong corrosion, high and low temperature, high humidity, high pressure, electromagnetic interference, wide voltage input and other special environment lighting requirements.

Absolutely, the company continues to develop intelligent lighting products, actively transform to “lighting + Internet”, and at the same time provide customers with intelligent, operation and maintenance service products, including intelligent control, operation and maintenance and contract energy management services.

It is planned to increase the purchase of Mingzhihui and cut into the field of lighting engineering. The synergy effect is obvious1. The company intends to issue shares and pay cash to 2.

713.2 billion acquired 51% of Mingzhihui’s equity projects at an issue price of 5.

63 yuan / share, the transaction consideration is 75%, and 25% are paid in shares and cash respectively.

Ming Zhihui’s military lighting engineering construction, design, maintenance and decoration engineering business has obtained “Special Grade A Lighting Engineering Design”, “Class I Professional Contracting for Urban and Road Lighting Engineering”, and Class I Professional Contracting for Architectural Decoration””, “Special Grade A of Architectural Decoration Engineering Design” and other qualifications.

2, the revenue of Mingzhihui in 2018 was 3.

98 ppm, an increase of 36 in ten years.

6%, gross margin 24.

25%, the net profit attributable to the mother is 49.01 million yuan, the evaluation of the acquisition of PE is 1深圳spa会所1 times, and comparable companies in the construction engineering industry are estimated to be 26 times.

Performance commitment: 19-21 years after deduction of non-return to the mother’s net profit were 56 million yuan, 61 million yuan, 64 million yuan, three-year cumulative commitment to net profit1.

8.1 billion.

As of September 23, Ming Zhihui has a total of 7 orders in hand.

100 million US dollars, of which 2 have been contracted for construction.

600 million.

3. We believe that the company has many large state-owned enterprise customers distributed in many fields such as electricity, metallurgy, petrochemicals, public security, etc. The special business environment lighting equipment requires a large number of lighting engineering business cooperation, and has established a nationwide sales system and acquisitionMingzhihui can realize the collaboration among customers, business, and sales networks. At the same time, Mingzhihui’s lighting engineering industry experience can meet customers’ one-stop needs for lighting and subsequent installation and maintenance, extending the industrial chain and helping to improve the company’s overall service capabilities. Third, the investment proposal considers the improvement of the company’s profitability and raises the company’s performance. Without considering the acquisition and consolidation, the company’s net profit attributable to the parent in 19-21 is predicted to be 2.
4.8 billion, 3.

1.3 billion, 3.

93 ppm, corresponding estimates are 19 times, 15 times, and 12 times.

Reference SW electronics manufacturing industry PE is 35 times, considering the company’s leading position in the special environment lighting industry, maintain the “recommended” level.

4. Risk warnings: 1. The proportion of the expense ratio during the period will increase; 2. Macroeconomic fluctuations and fluctuations in downstream industries; 3. Intensified industry competition; 4. Fluctuations in raw material prices