Zhejiang Dingli (603338) 2019 Third Quarterly Report Review-Growth Interference Focusing on Arm-type Product Opportunities at High Base
The impact of North American tariffs is expected to be gradually digested by the market, the company’s profitability will remain high, the promotion of arm-type products will be smooth, and the growth space is still broad. The company’s net profit for 2019-2021 is expected to be 5.
57 and 7.
US $ 8.3 billion, maintain “Buy” rating.
Profitability remained high during the single quarter transition period under a high base.
The company achieved revenue 14 in the first three quarters of 2019.
4.5 billion, an increase of 9.
02%, realizing net profit attributable to mother 4.
4.4 billion, an increase of 12.
02%, realizing net profit deduction 4
1.4 billion, an increase of 15.
Achieve operating income in the third quarter alone 5.
9.7 billion, an increase of 10.
41%, net profit attributable to mothers1.
8.3 billion, down 3.
Reporting average, the company’s gross margin is 40.
85%, compared with 40 last year.
66% slightly improved, compared with 41 in the first half of 2019.
A 73% drop from the previous month may be related to factors such as tariffs and income structure in the US market, and a net interest rate of 30.
69% high stable.
In the first three quarters, the company realized a repayment of 16.
28 trillion, net operating cash flow 3.
2.9 billion, ending accounts receivable5.
680,000 yuan, compared with 6 in the middle of the year.
12 ppm is down from the previous month, and the four expense ratios total.
05%, down by 1 per year / mo.
97 and 2.
10 pieces, the overall operating ability continued to excel.
The impact of North American tariffs may gradually be digested, and the domestic market is still the focus.
During the year, the company ‘s lowest product in North America has fully considered the impact of tariffs. At present, picking up goods is gradually recovering. The market is gradually digesting the impact of tariffs. It is expected that exports from Europe and the Asia-Pacific region will also form a positive hedge.
The domestic market is benefiting from the scissor margin bonus of rising labor costs and falling equipment rents, and sales are expected to continue to increase.
The company announced that it will increase the capital of its wholly-owned subsidiary by US $ 100 million. It is expected that it will enhance the financial strength, financing capacity and operating capacity of the subsidiary, provide better financial leasing services to the leaser customers, and promote the company’s product sales.
Arm-type products are advancing smoothly and are expected to become new growth engines.
We visited the Asia International Aerial Work Machinery Exhibition 2019. From the perspective of grassroots discoveries, leasing customers generally report that they are very optimistic about the rental level and leasing demand of boom products, and have a good evaluation of Dingli’s new arm products.
According to the company’s WeChat public account, the company has received nearly 800 leasing companies, and the arm-type intention order has exceeded 1,000 units.
At present, the domestic arm-holding ratio accounts for less than 20%, and the penetration rate still 北京夜网 needs to continue to improve. The company’s annual investment is planned to be invested.The US $ 9.8 billion new plant is advancing smoothly and is expected to drive revenue to a new level through arm-type products.
Risk factors: Less than expected development of domestic aerial platforms, changes in the exchange rate of the RMB, gradual expansion of overseas markets, and uncertainty in trade disputes.
Earnings forecasts, estimates and investment ratings.
The impact of North American tariffs is expected to be gradually digested by the market. The company ‘s profitability remains high. Arm-type products are advancing smoothly. There is still room for growth. Considering the impact of tariffs on the US market during the year, we lowered the company’s net profit 杭州桑拿网 forecast for 2019-2021 to 5.
57 and 7.
8.3 billion (previous forecast was 6.
7.2 billion), corresponding to EPS 1.
54 yuan, maintain “Buy” rating.