Liangxin Electric (002706): Steady increase in performance and expected acceleration in the future

Liangxin Electric (002706): Steady increase in performance and expected acceleration in the future
Core point of view: stable operating performance, slightly increasing revenue growth The company announced its 2019 Interim Report, and realized revenue from January to June 9.45 ppm, an increase of 17 in ten years.84%, 5 in the second quarter.65 ppm, Q1-Q2 quarterly revenue growth was 17.14% and 18.32%, the growth rate continues to increase.From January to June, net profit attributable to mothers and net profit attributable to non-mothers1 were realized.55 ppm and 1.30 ppm, an increase of 23 in ten years.06% and 15.02%, Q2 belongs to net profit of mother 1.12 ppm, an increase of 30 in ten years.15%. Net operating cash flow from January to June 2.100,000 yuan, an annual increase of 36.27%. The increase in net profit attributable to mothers and operating cash flow was mainly due to income growth while receiving government subsidies of 2,505 million. The gross profit margin was stable at a high level, and the investment in research and development steadily increased.29%, a slight decrease of 0 a year.56pct. The gross margins of the main products of terminal appliances and distribution appliances are 40.22% and 44.26%, three years -3.63 and +2.49pct, the first is the adjustment of the price of terminal appliances, the change in the structure of switching electrical products.Company expenses from January to June 24.25%, a slight decrease of 0 a year.04pct, in which the sales expense ratio, management expense ratio and research and development expense ratio increase by +0 respectively.39, -0.47 and +0.09pct, the overall cost control is permanently stable.The company incurred R & D expenses from January to June.75 ppm, an increase of 19 years.15%, R & D expense ratio reached 7.90%, R & D investment remains at a high level. Downstream maintains a high business climate, and business development is expected to take a new level. From the perspective of the downstream industry, under the actual policy background, leading real estate companies are trying to increase market share through capital and other advantages. The company’s customer demand is managed to maintain, while domestic alternative measures are furtherIncreasing the company’s market share; Against the background of increasing photovoltaic costs, the industry’s installed capacity and export volume have maintained a high level of prosperity. The company has maintained its advantage in the field of centralized inverters, and its industry sales have continued to 杭州桑拿 increase; the company applies 5G 1UThe product has been successfully launched on the market, and it has maintained a good cooperative relationship with downstream companies such as Huawei and Emerson, and will continue to benefit from the development of 5G in the communications industry. Investment suggestion As a domestic leader in the field of high-end and low-voltage electrical appliances, the gap between the company’s technical level and international brands has gradually narrowed, and the advantages of prices and services have gradually emerged, and the prospect of domestic substitution is optimistic.We estimate the company’s net profit attributable to its parent to be 2 in 2019-2021.77, 3.37 and 4.160,000 yuan, an increase of 25 in ten years.0%, 21.4% and 23.4%, corresponding to 20, 16 and 13 times the current expected PE.深圳桑拿网Maintain a reasonable value of 8.05 yuan / share and “Buy” rating. Risks prompt macroeconomic growth rate; real estate industry policy adjustments; new energy investment is less than expected.