The company released its quarterly report for 2019, with operating income of 336 million yuan, an increase of 32.49% over the same period last year, a net profit of 7.44 million yuan, an increase of 483.56% over the same period last year, and a non-net profit of 5.34 million yuan, an increase of 446.18%.
Comments:
A substantial increase in income, continue to expand new markets. In the first quarter of 2019, the company achieved operating income of 336 million yuan, a substantial increase of 32.49% over the same period last year. The company won the bid "platform door equipment purchase Project of Beijing Rail Transit Line 19 Phase I Project" in March this year, with a bid amount of 38353032 yuan, which is expected to have a positive impact on the company's follow-up business performance. The project is the first time in the history of Beijing subway planning to set up a station in Financial Street, and it is the first subway express line in Beijing, and it is also one of the milestone projects in Beijing subway planning. it is a major breakthrough for the company in the key subway planning lines in the country's core cities, and it is the full recognition and trust of the company's comprehensive strength, such as bidding qualification, technical advantages, product quality and so on.
During the period, the expense rate decreased compared with the same period last year, and the net profit increased significantly. During the reporting period, the company's sales, management, R & D and financial expenses were 3800, 3004, 780 and 16.17 million yuan respectively, sales fees / financial expenses increased by 9.47% and 16.68% respectively compared with the same period last year, and management fees / R & D expenses decreased by 12.14% and 24.97% respectively. The rates of sales, management, R & D and financial expenses were 11.56%, 8.95%, 2.32% and 4.82% respectively, down 2.43pct, 4.55pct, 1.78pct and 0.65pct respectively from the same period last year. During the reporting period, the company achieved a net profit of 5.34 million yuan, an increase of 483.56% over the same period last year, and the net interest rate reached 1.59%.
Sign a strategic contract with Guangzhou Metro Group Co., Ltd. In February this year, the company signed the Strategic Cooperation Framework Agreement on lightweight medium Frequency / High Frequency Converter Auxiliary Power supply for Rail Transit with Guangzhou Metro Group Co., Ltd. The two parties agree to carry out cooperation in tackling key technical problems and product research and development of lightweight medium frequency / high frequency converter auxiliary power supply for urban rail transit vehicles under the framework of this agreement, so as to achieve substantial weight reduction of urban rail vehicle auxiliary power supply devices with the same power capacity, promote achievement demonstration and industrial application. The cooperation is conducive to the acceleration of the company's domestic commercial promotion of lightweight power technology, and promote the development process of domestic rail transit vehicle weight loss and energy-saving technology to the world leadership.
Profit forecast and investment rating. We maintain the forecast company's EPS for 2019-2021 is 0.16 yuan 0.32pm 0.48 yuan, corresponding to PE is 46-24-16 times, considering that the company is at the inflection point of profit recovery, give Dinghan Technology a valuation of 25 times in 2020, maintain the target price of 8 yuan, and maintain a "neutral" rating.
Risk hint: the landing of the new product is not as expected and the tender is delayed.
