Zhejiang Dingli (603338) 2018 Annual Report Comments: High Performance and High Growth Potential

Zhejiang Dingli (603338) 2018 Annual Report Comments: High Performance and High Growth Potential

The company’s 2018 revenue continued to grow. The company released its 2018 annual report and achieved revenue of 17.

08 thousand yuan, +49 a year.

89%; net profit attributable to mother 4.

80ppm, +69 per year.

The 69% performance increase is mainly due to: 1) the company’s product competitiveness is constantly increasing and product demand is strong; 2) annual output 1.
.

The 50,000 small shear fork project was put into operation in July 2018, and the production capacity was further increased; 3) Exchange gains increased due to the depreciation of the RMB.

Another company ‘s annual average annual budget forecast is 2068 million, which was initially discovered during the audit of a 25% -holding CMEC company. The CMCM ‘s capitalization of R & D expenditures over the years has been fully expensed, which has caused CMEC to decrease by about 8700. 10,000 yuan, affecting the company’s net profit of about 21.75 million yuan, will not be affected by this in the future.

The domestic market has a bright performance and the profitability remains stable. 1) The domestic market is recognized by leading leasers, and the foreign channels continue to develop: the company’s domestic / foreign revenue is 7.
.

16/9.

2.5 billion, an annual increase of 84.

23% / 30.

18%, a long-term strategic cooperation agreement between a domestic company and China’s leading leasing company Shanghai Hongxin. The product is fully recognized and the channel expansion effect is significant. The products of foreign companies have successfully entered the three major high-end mainstream markets in the United States / Germany / Japan and continue toExpansion.
2) The company’s profitability is stable, and the arm profitability has greatly increased: the company’s 18-year gross profit / net profit margin is 41.

52% / 28.

14%, a decade change of -0.

46% / 3.

28%. The increase in net interest rate is mainly due to exchange gains and gains due to increased earnings; in terms of products, arm / scissor / mast products2.

07/12.

83/1.

51 ppm, +103 for ten years.

22% / 50.

32% / 4.

98%, gross margin 34.

58% / 40.

93% / 41.

69%, a change of 9 per year.

35 / -1.

82/1.

65gepct, the large increase in arm-type gross profit margin was mainly due to product heavy volume and diluted operating costs. The slight decline in shear fork gross profit margin was mainly due to the increase in sales of small shear fork products whose gross margin was reset 南京桑拿论坛 and the main sales to the United States caused structural changes in the productTo.

The production capacity of small scissors and forks is released smoothly, and we expect the company to produce an annual output of 1.

The 50,000 small shear fork project was put into production in July 2018. The scale effect has gradually increased production costs and increased profitability. The company’s “3,200 boom-type large-scale intelligent aerial work platform construction project” plant has been basically completed. It is expected thatThe output will be reached in May 2020.

The subsequent increase in production efficiency of suites + optimization of product structure + scale effect will drive the company’s production capacity and product gross profit margin to increase steadily.

Profit forecast and investment recommendations: The company’s industry competitiveness is outstanding, and the internal channel expansion effect is significant. This year, it will continue to benefit from the release of small shear fork capacity. The arm-type production will open a larger market. It is expected that net profit in 2019-21 will be 6.

47/8.

59/11.

50 ppm, currently corresponding to PE 30/23/17 times.
Maintain “Buy” rating.

Risk warning: industry competition intensifies; Sino-US trade frictions intensify; investment projects fail to meet expectations.