Inner Mongolia First Machine (600967) 2019 Interim Report Review-Inventory Increase Orders Good, Long-term Performance Growth Can Be Expected

Inner Mongolia First Machine (600967) 2019 Interim Report Review-Inventory Increase Orders Good, Long-term Performance Growth Can Be Expected

The company’s revenue in 2019H1 was 53.

US $ 1.5 billion, with a decrease in reported gross interest rates, reductions in financial expenses and impairment losses on assets, steady growth in performance, a substantial increase in inventories, or a sign of better orders.

Considering the mechanization of our army, the acceleration of modernization construction is expected to drive the army equipment procurement to usher in a boom cycle. As a leader in armored vehicles, the company tries to fully benefit and maintain the company’s EPS forecast for 2019/20/21.

39/0.

48/0.

58 yuan.

Based on the estimated level of comparable companies in the industry, the company maintains a “Buy” rating with a target price of 14 yuan in the industry category of army armored vehicles and subsequent capital operation expectations.

The increase in inventory may indicate a positive order, and long-term performance growth is expected.

The company’s revenue in 2019H1 was 53.

1.5 billion (+4.

57%), net profit attributable to mother 3.

3.4 billion (+15.

66%), EPS 0.

20 yuan.

According to the number of reports, the company’s revenue increased slightly, or due to changes in product structure, the gross profit margin fell1.

52% to 9.

92%, financial expenses -1.

USD 3.6 billion, with a 69% increase in the upper limit of the scale, and a rebound in the value of current assets led to a reduction in asset impairment losses 杭州夜网论坛 of 93.

72% to 1.29 million yuan, steady growth in performance.

The company’s inventory 31 at the end of the reporting period.

5 billion, an increase of 50 from the beginning of the period.

95%, an increase of 44 over the same period last year.

31%, the increase in inventory may indicate that the company’s orders are good, and the long-term performance growth rate of cocoa is expected.

The army’s mechanization construction drives the company’s development, and the 15-type tank may be a new highlight.

The company’s tank armored vehicle business is mainly responsible for the parent company.

Report the statutory parent company to realize income 44.

13 ppm, an increase of 0 in ten years.

45%, the growth rate is lower than the company as a whole, gross profit margin decreased by 0.

48% to 9.

37%, a decrease 武汉夜网论坛 smaller than the company as a whole, or indicates that the company’s overall gross profit rate has been reduced to a change in product structure.

Parent company inventory 29.

520,000 yuan, an increase of 56 in ten years.

01%, an increase higher than the company as a whole, and the subsequent delivery of military products is expected to improve.

At present, old tanks account for a relatively high proportion each year, and it is expected that the refit space in the future is expected to reach billions. The company’s Type 96 and 99 main battle tanks benefit.

15-type tanks and other equipment equipped troops, or a new bright spot for the company’s tank armored vehicle business.

The company ‘s 8 × 8 wheeled armored vehicle demand gap, and under the target of our army’s mechanized construction, we expect to maintain a growth rate of about 30% in the next 3 years.

Railway vehicles have large orders for coaxial vehicles, and overseas markets continue to exert their strength.

Report on the emerging subsidiary Baotou Northern Ventures revenue6.540,000 yuan, net profit 20.21 million yuan, exceeding the decline of 19.

4%.

According to the company’s announcement, the Railway Corporation purchased 2,000 C70E general-purpose gondola cars and 600 C80B stainless-steel coal-dedicated gondola cars from Northern Venture, with a total scale of over 1 billion yuan, and is expected to be delivered twice this year and next.

At the same time, the company has stepped up its efforts in foreign trade development and continued to make efforts in markets such as Indonesia, Lithuania, and Australia. Overseas markets are expected to become new support points for the company’s civilian products business.

The Group’s only armored vehicle platform is expected to receive premium asset injections in the future.

With the expansion of the “Double Hundred Actions” and the release of decentralized authorization lists, the mixed reform of military and central enterprises has been promoted.

Asset securitization is the main path of mixed military-industrial reform. The current weapon securitization rate of the weapon industry group is still relatively high, and there is still room for improvement in the future.

The company, as the only listed platform of the group’s subsidiary armored vehicles, is expected to receive the injection of assets related to the group’s external high-quality armored vehicles in the future.

Risk factors: The military products business orders are less than expected, the mixed reform is not advanced as expected, and the demand for railway vehicles is falling.

Investment suggestion: Considering the mechanization of our army, the acceleration of modernization is expected to drive the army equipment procurement to usher in a boom cycle. As a leader in armored vehicles, the company tries to fully benefit and maintain the company’s EPS forecast for 2019/20/21.

39/0.

48/0.

58 yuan.

The current price is 11.

33 yuan, corresponding to 2019/20/21 PE is 29/24/19 times.

Based on the estimated level of comparable companies in the industry, the company maintains a “Buy” rating on the industry category of the army armored vehicles and subsequent capital operation expectations, with a target price of 14 yuan (corresponding to January 2019.

5 times PS).