Guodian NARI (600406): Expanded growth orders accelerate upward

Guodian NARI (600406): Expanded growth orders accelerate upward

Investment Highlights The company released the third quarter report of 2019: the company achieved operating income of 171 in the first three quarters.

80,000 yuan, an increase of 0 in ten years.

12%, net profit attributable to mother 21.

460,000 yuan, at least -7.

32%, realizing net profit deducted from non-mother 20.

1.3 billion, +4 a year.

34%; the company’s single quarter of 2019Q3 achieved revenue of 62.

460,000 yuan, at least -5.

41%, realizing net profit attributable to mother 9.

45 ‰, at least -1.

93%, realizing net profit deduction for non-attribution8.

99 ‰, +4 for ten years.

69%, performance in line with market expectations.

This is an average increase: gross profit margin and net profit attributable to mothers have increased significantly, especially Q3 single-quarter growth continued to increase.

The company has shown a good development trend, especially the single quarter gross margin reached 31.

13%, a new high in the past two years, showing the company’s shift to the pursuit of order quality and performance-oriented development thinking.

The company’s Q3 single-quarter revenue transition level has an impact on extending the pace of project delivery at this stage, and is expected to remain unchanged.

From the perspective of the company’s operating income confirmation rhythm from 2016 to 2018, the company’s performance is mainly in Q4, and there is no regular pattern during the quarter. The company’s revenue confirmation is mainly the project delivery rhythm.

With the overall expectations unchanged, we believe that Q4 revenue and performance growth will all exceed 20%, and the growth rate will continue to increase.

Orders are forward-looking 杭州夜网论坛 indicators with accurate performance, and more order growth rates should be added.

We believe that the growth rate of the company’s orders is particularly important. The company’s 2018 annual report revealed that the order growth rate was 11%, and Q4 was the peak in revenue recognition. As of the end of September, the company’s orders in hand were about 40 billion, which is expected to be cashed in large quantities in this yearWe have confidence in the company’s development goal of achieving a 10% increase in scale revenue.

Investment suggestion: Benefiting from the widespread investment landing, the order growth rate of the company is expected to rise to a higher level, leading to the improvement of the forecast. We adjust the profit forecast and estimate that the company’s net profit for 2019-2021 will be 43.

6, 55.

4, 69.

1 ‰, the annual growth rate is 4 respectively.

7%, 27.

2%, 24.

7%, EPS is 0.

94, 1.

20, 1.

49 yuan, corresponding to the PE of the closing price on November 1, 2019 were 23.

8, 18.

7, 15.

0 times, raised to the “buy” level.

Risk reminder: The risk of flooding in the electric power Internet of Things is less than expected, UHV construction investment is less than expected, and the macroeconomic growth is slowing down.