Gree Electric (000651): Steady operation remains unchanged but remains adequate

Gree Electric (000651): Steady operation remains unchanged but remains adequate

Key points of the report Description Gree Electric disclosed the financial report for the first quarter of 2019: the company achieved operating income of 405 in the first quarter.

48ppm, an increase of 2 per year.

49%, net profit attributable to 56.

72 ppm, an increase of ten years.

62%, achieving the expected non-recurring loss of net purity of 51.

14 ppm, an increase of 22 in ten years.

16% EPS 0.

94 yuan / share.

The event commented that the industry was operating steadily, and the company’s revenue performance was in line with expectations: in the first quarter, domestic sales and export sales of the air-conditioning industry increased by 2 respectively.

88% and above1.

37%, the industry as a whole is operating steadily, gradually merging the company ‘s higher revenue base in the same period last year, and the slight increase in revenue in the quarter was basically in line with market expectations; and from the perspective of terminal retail performance, the company maintained a slight increase in average retail price.In the annual report of 2018, for the change in revenue growth in the second half of 2018, we believe that the company’s channel inventory has increased, but the overall level is still better than expected, and given the steady release of industry demand, we expect the company’s long-term revenue to be large.Probability can keep growing steadily.

Profitability remains stable, but profit retention can increase: the company’s gross profit margin fell in the first quarter and fell to zero.

27pct, but considering the company ‘s retail price has slightly increased and the external environment has better costs and exchange rate environment, this gross profit margin performance does not match the actual operating situation. We expect this to be mainly related to the company ‘s cash-back sales in the quarter, and the first quarter”Gross-pin spread” was previously raised by 0.

44pct; because the company ‘s quarterly management and R & D expense ratios increased slightly, and the impact of exchange rate changes on other income statement subjects other than gross profit tended to be stable; in summary, the company’s current net interest rate fell slightly to 0.

12 points to 13.

99%; basically yes, without a significant increase in revenue in the current quarter, the company’s other flow resistance is still increasing by 8 from the previous quarter.

940 thousand yuan, it can be seen that the current profit retention has increased.

Operating cash flow performance is healthy, and the overall statement quality is excellent: the company in the first quarter

15%, which is mainly related to the extremely high base in the same period last year, and the absolute net cash flow of the company in the first quarter reached 77.

3.3 billion US dollars, exceeding the company’s 淡水桑拿网 current net profit, showing that operating cash flow is very healthy; this is true, the company’s first quarter cash ratio increased by 0.

22. The quality of current revenue also improved significantly; the scale and quality of the company’s overall statements were excellent, and the company’s book cash at the end of the first quarter exceeded 130 billion, which provided a basis for the long-term implementation of the dividend policy.

Maintain the company’s “Buy” rating: in the first quarter, the company’s revenue has achieved steady growth, the current profitability has remained relatively stable, profit retention and cash flow are healthy, and the company’s overall operating performance is in line with expectations; in the follow-up, combined with channel inventory levels,Factors such as terminal demand and costs 苏州桑拿网 are expected to achieve steady growth in the company’s main business in 2019. At the same time, the transfer of mixed reform programs will advance, and the improvement of the governance structure will also promote the company’s scale; the company’s EPS is expected to be 4 in 2019 and 2020 respectively.

80, 5.

32 yuan, corresponding to the current total PE is 11.

94 and 10.

77 times, maintain “Buy” rating.

Risk prompts: 1. The advance of equity transfer is less than expected; 2. The performance of terminal demand is poor; 3. The competition in the industry is intensifying.