CRRC (601766): Q1 net profit increased by 40% year-on-year
Core points: 1.
The event company released the first quarter report of 2019, and the company achieved 396 in the first quarter of 2019.
68 ppm, an increase of 20 in ten years.
49%; realize net profit attributable to shareholders of listed companies.
8 billion, an annual increase of 40.
21%; realized non-net profit deduction of 14.
840,000 yuan, an increase of 47 in ten years.
Our Analysis and Judgment (I) The revenue of railway equipment business and urban rail business increased rapidly. In the first quarter of 2019, the company’s operating income increased by 20 compared with the same period last year.
49%, mainly due to the rapid growth of railway equipment business and urban rail business.
The operating income of the railway equipment business increased by 32 over the same period last year.
48%, mainly due to the increase in locomotive, truck, and passenger car revenue: of which locomotive business income was 42.
100,000 yuan, 32 bus revenue.
25 ppm, EMU business revenue was 99.
3.7 billion, trucking revenue 36.
42 trillion, an increase of 95 over the same period last year.
The operating income of urban rail and urban infrastructure business increased by 37 compared with the same period last year.
85%, mainly due to the increase in sales of metro products delivered in the current period.
The operating income of the new industry business increased by 15 over the same period last year.
57%, mainly due to the increase in general mechanical and electrical business income in the current period.
The operating income of modern service business decreased by 47 compared with the same period last year.
64%, mainly due to the temporary logistics business in this period.
The company’s consolidated gross profit margin for the first quarter of 2019 was 22.
07%, a decrease of 0 compared with the same period last year.
66 averages; net margin is 5.
12%, an increase of 0 over the same period last year.
46 single, mainly due to the company’s sales expenses, management expenses, financial expenses and other growth in the first quarter due to duplication.
(2) EMU advanced repair and urban rail business will become a driving force for performance. EMU advanced repair and other urban rail business will become an important driving force for the company’s motor vehicle business revenue growth.
From January to March 2019, the total length of the company and iron was 296.
3 billion yuan of advanced repair contracts for EMUs, exceeding the amount of ten-year advanced repair contracts in 2018.
With the increase in the number and service life of EMUs, maintenance of EMUs in the future is expected to bring new profit growth points to the company.
According to the “Maintenance Regulations for the Operation and Maintenance of Railway EMUs” by China Railway Corporation, the EMUs are repaired in accordance with the operating mileage cycle, supplemented by the time cycle, whichever comes first.
The EMU repair process is divided into five levels, one of which is for daily use maintenance, and three, four, and five for advanced repair.EMUs run 1.2 million kilometers or three years for level three repairs, 2.4 million kilometers or six years for four levels of repairs, and 480 kilometers or twelve years for five levels of repairs. The daily operation and maintenance are generally responsible for the general maintenance and advanced repairsThe competitiveness ratio is completed by the company and the value is high.
China’s EMUs have been operating for the first time since 2007, and some EMUs have begun to perform Level 5 repairs.
In addition, according to China Railway Corporation’s “2018-2020 Freight Increment Action Plan”, the national railway freight volume will reach 47 by 2020.
900 million tons, an increase of 30% over 2017.
In order to achieve this goal, the General Railway will purchase large power engines and trucks in the future. We expect that the purchase volume of railway trucks and locomotives will maintain a rapid growth in 2019-2020.The annual growth rate of locomotive and truck purchases was 12% and 35% respectively.
Investment suggestion We expect 杭州夜网 that the company’s EMU sales business will remain stable from 2019 to 2020. EMU maintenance and other maintenance revenues will enter a rapid growth channel. The purchase of locomotives and trucks will maintain a steady growth under the influence of the total railway freight increase plan.Net profit continued to grow.
Considering that the company’s advanced maintenance business for EMUs has entered the growth channel, and that trucks and locomotives will maintain steady growth due to the impact of the incremental freight plan, we expect that the company’s EPS for 2019-2021 will be 0.
62 yuan, corresponding to 17/15/14 times the PE, maintaining the “recommended” level.
Risks indicate the breakdown of the growth rate of infrastructure investment and rising raw material costs.