Important event: the company released its semi-annual report for 2020. In the first half of 2020, the company achieved an operating income of 1.765 billion yuan, an increase of 3.60% over the same period last year, and a net profit of 167 million yuan, an increase of 62.38% over the same period last year. In the second quarter of 2020, the company achieved operating income of 1.244 billion yuan, an increase of 29.50% over the same period last year, an increase of 138.90% over the same period last year, and a net profit of 162 million yuan, an increase of 119.41% over the same period last year and 2706.05% over the same period last year. In the first half of 2020, the company's performance exceeded expectations, its net profit increased significantly, its profitability improved significantly, and its performance achieved high growth in the second quarter. The company also announced the first three quarters of 2020 results forecast, the first three quarters of 2020 is expected to achieve a net profit of 321 million yuan to 401 million yuan, an increase of 60% 100% over the same period last year, the performance maintained high growth.
Performance increased compared with the same period last year, and profits improved significantly. In the first half of 2020, the company achieved an operating income of 1.765 billion yuan, an increase of 3.60% over the same period last year, and a net profit of 167 million yuan, an increase of 62.38% over the same period last year.
In the first half of 2020, the company's performance increased compared with the same period last year, and profits improved significantly. Profitability has improved significantly, and management innovation has improved operational efficiency. In the first half of 2020, the year-on-year growth rate of the company's profit end is much higher than that of the revenue side, mainly due to the increase of the company's gross profit margin and the improvement of profitability; during the period, the expense rate decreased and the management efficiency was highlighted. The effective execution of orders continues to grow, the investment in the downstream infrastructure industry is increased, and the company continues to highlight its advantages as a domestic elevator brand leader. As of June 30, 2020, the company's valid orders being executed were 6.343 billion yuan (excluding 622 million yuan orders that won the bid but did not receive a deposit), an increase of 6.73% compared with the end of 2019. The data company disclosed a steady increase in the number of effective executed orders during the reporting period in the past three years. In addition to consolidating the traditional advantages of customers and areas, the company is expanding the market of rail transportation, maintenance and installation of elevators.
Profit forecast and investment rating: Kangli Elevator, as a domestic brand elevator leader, has enhanced its market development ability, improved its management efficiency, and highlighted the company's competitive strength in the changes in the industry.
We expect the company's 2020-2022 net profit to be 467, 542, 000.
Risk tips: raw material prices fluctuate sharply; industry competition intensifies; downstream investment is lower than expected.