2019Q1 revenue hit an all-time high, with a 55% year-on-year increase
The company released its quarterly report for 2019, with an income of 329 million yuan, an increase of 151.01% over the same period last year, and a net profit of 39 million yuan, an increase of 54.67% over the same period last year. The quarterly income reached an all-time high, and the performance exceeded the expected range of 3000-35 million yuan previously forecast. The gross profit margin / net profit rate of the company's 2019Q1 was 26.73% and 11.70%, a decrease of 16.79 pct over the same period last year. The larger change is mainly due to the company's high customer concentration, large single order amount, and profitability greatly affected by the confirmation progress of different projects.
The company has plenty of orders on hand, and its performance is expected to continue to grow.
In 2018, the company added 1.256 billion yuan in new orders, an increase of 74.50% over the same period last year, and 1.681 billion yuan in hand, an increase of 80% over the same period last year. Compared with 2017, the company made new breakthroughs in supermarkets, petrochemical and other industries, obtaining 524 million yuan in new orders, accounting for more than 40% of the total, and maintaining steady growth in the existing new energy and tobacco industries. As of 2019Q1, the company has 1.63 billion yuan in-hand orders, based on which it is estimated that the company's new orders in the first quarter are 334 million yuan (including VAT). New orders have maintained a steady growth, and on-hand orders are expected to provide a strong guarantee for the sustainable growth of the company's performance.
Rising land / labor costs accelerate industry penetration, and cross-industry expansion opens the growth ceiling
With the rising land costs and labor costs in China, especially the deepening of the transformation and upgrading of the manufacturing industry, intelligent logistics systems are more and more widely used in enterprises. It is estimated that the integrated market size of intelligent logistics systems in China will be nearly 140 billion yuan in 2020. with an average annual compound growth rate of more than 20%, the rapid development of the industry will bring a broad growth space for the company. From the perspective of the company's new order application industry, in recent years, on the one hand, the company has ploughed the existing tobacco and new energy industries, on the other hand, it has increased its efforts to expand other industries. at present, it has been used in petroleum and petrochemical, daily chemical, medical and health products, high-speed rail, airport, aviation and military industry, electric power, furniture, supermarkets, electronics, automobile, food and beverage and many other industries. Among them, supermarkets, petrochemical, automobiles and semiconductors are breaking through for the first time, and have obtained large-scale project orders such as China Resources Wanjia, Zhongke Refining and Chemical Co., Ltd., BYD and so on. The continuous expansion of cross-industry has opened the ceiling of the company's growth and increased the company's potential for long-term sustainable development.
Profit forecast and investment advice:
It is estimated that the net profit for 2019-21 will be 1.37 million yuan for 1.62 pounds, and the current share price will correspond to the times of PE on 30-26-22. For the first time, coverage gives an "overweight" rating.
Risk Tips:
The progress of on-hand order confirmation is not as expected; the development of new industries / customers is not as expected; and the macro economy continues to decline.
