Pinggao Electric (600312) 2019 third quarterly report comment: the performance cashing period is coming and the overall operation continues to improve

The company achieved net profit attributable to mothers from January to September 20191.

1.8 billion (five years +5156.

27%), UHV order performance is expected to continue to release, maintaining 2019 EPS forecast of 0.



74 yuan, maintaining the company’s 2019 target price of 10.

4 yuan, corresponding to 20 times PE, maintain “Buy” rating.

The performance was in line with expectations, and the quarterly profit continued to improve.

The company released the third quarter report for 2019 and achieved operating income of 59 from January to September.

07 million yuan (ten years +18.

17%), achieving net profit attributable to mother 1.

1.8 billion (five years +5156.

27%), net profit after deducting non-attribution is 1.

40,000 yuan, an increase of 1 every year.

1.2 billion, in line with the company’s performance forecast guidelines.

In terms of quarters, the company’s Q1-3 net profit after deducting non-attribution to its mother was 0.



60 ppm, continued to be positively profitable and improved month-on-month, accelerating the release of performance.

It is expected that from the third quarter of 2019, UHV high-elasticity station equipment leaders will begin to enter into the performance cashing period, and have maintained high elastic growth in sight.

The company’s overall operating conditions are good.

The company’s gross profit margin for the first three quarters was 14.

22% (decade +0.

75 pcts), period expenses 11.

68% (decade -0.

98 pcs), of which R & D costs are dozens +1.

22 pcts, the remaining three items are reduced every year, and the management costs are reduced by 1.

52 points, the company’s cost control is better.

Net operating cash flow in the first three quarters was -28.28 million yuan, an increase of 5 per year.

69 million, the cash flow quality was substantially repaired.

The initial UHV order is expected to confirm about 90% of the revenue, and the expansion order releases a breakthrough in the release of DC wall bushings.

At the beginning of 2019, during the large-scale recruitment of “two straight and two crosses” UHV, the company won the order19.

With USD 7.9 billion and a GIS market share of 50%, we expect the company to gradually seek to confirm about 90% of the above-mentioned order revenue.

In September, the first batch of equipment of Yazhong Line was publicly announced, and the company won the bid 2.

USD 4.0 billion; Zhumadian-Wuhan line (special delivery project) launched the EIA public announcement. It is expected to start construction in October with a static investment of 3.4 billion. In October, the UHV expansion and construction projects were reopened.Third, and the DC wall bushing was ordered.

The distribution network construction is expected to have a long-term boom, and the one-key sequence control project has gradually started.

In line with the ubiquitous electric power Internet of Things development needs, investment in strong smart grid construction is expected to continue to shift to distribution network construction. Distribution orders obtained by the company from the 天津夜网 second half of 2018 will continue in 2019, and the company will continue to obtain large sums in grid bidding.Orders have a significant effect on the bottom line of expected results.

The development of the one-key sequence control business that the company mainly participates in is gradually accelerating. By the first half of 2019, the company won the bid for 227 one-key sequence control transformation projects, with the largest market share. It is expected to benefit from the one-key sequence control business in the next 2-3 years.Rapid growth. Risk factors: UHV construction progress is less than expected, distribution network orders are less than expected, industry competition is intensified, and bidding prices fluctuate.

Investment suggestion: The profitability of UHV orders has improved significantly. Distribution network construction is expected to continue to contribute to the order increase. We maintain the company’s EPS forecast for 2019-2021 to 0.



74 yuan, given 20x PE in 2019, corresponding to a target price of 10.

4 yuan, maintain “Buy” rating.