Zhejiang Dingli (603338): Deepening internal lean management net profit margin hits record high

The company announced the interim report: revenue 8.

500 million, an increase of 8 in ten years.

1%; net profit attributable to mother 2.

6 billion, an annual increase of 26.

8%, slightly lower than our expectations.

Despite the impact of trade friction, we should focus more on the long-term response of the company’s layout: actively shrink the North American market with high uncertainty, actively explore the domestic and European markets, and have achieved initial results. At the same time, the company strengthened internal lean management.Net interest rate hits record high!

Net profit is expected to be 6 in 19/20.

200 million / 9.

0 billion, corresponding to PE is 38 times / 26 times, continue to strongly recommend!

The highest 无锡桑拿网 income growth was mainly due to the impact of trade frictions: the impact of Sino-US trade frictions, with each North American income falling by 53%.

In order to deal with the impact of Sino-US trade friction, the company proactively adjusted its strategy to reduce the proportion of sales in the North American market in overseas markets and increase the proportion of markets in Europe and Asia in overseas markets: European revenue1.

50,000 yuan, an increase of 47 in ten years.

16%, accounting for 39% of overseas revenue, and revenue in Asia and other markets1.

1 ppm, an increase of 21 in ten years.

84%, resisting risks through diversified markets is the company’s long-term layout.

The growth rate of net profit is higher than income in two main ways: First, the net interest rate has increased to 30.

7% (previously + 4pct); Second, in terms of non-recurring gains and losses, although investment income increased and decreased (decreased by more than 14 million), the government subsidy increased by an additional 20 million, which contributed to the increase in net profit (the exchange income did not change much).

Attention should be paid to the company’s lean management results, and the net profit rate hit a record high!

Despite the pressure from the US business, it should be noted that domestic high-altitude platforms are still developing at a high speed: domestic revenue of US $ 400 million in the first half of the year, an annual growth of 35%, accounting for 51% (+ 12pct).

At the same time, thanks to the company’s lean management, the three rates were effectively controlled, and the gross profit margin was increased to 41.

7% (previously + 3pct) with a net margin of up to 30.

7% (previously + 4pct), a record high.

Selling expense ratio 5.

27%, administrative expenses rate 5.

94%, a year down.

Accounts receivable in the first half of the year 6.

300 million, most of which are due within 1 year, and financial lease payments9.

800 million (an increase of 300 million from the end of the previous month), and long-term receivables due within one year4.

700 million (100 million more than the end of the previous month), the overall account risk is controllable.

Arm type has become a new battlefield, and Dingli is expected to replicate the advantages of scissors.

In the first half of the year, the domestic income of the arm-type arm was 71.59 million, an increase of 88%, which became more and more significant in some areas.

After reviewing the evolution of the European and American equipment industry, we can find: ① The overall internal arm type only accounts for 10% (Europe and the United States 30-40%), and the proportion of the arm type is gradually increasing, which is an inevitable choice for industrial upgrading; ② more than 90% of domestic application scenariosIt is still in the construction field (the proportion of non-building applications in the United States accounts for 30-40%), and it will develop into non-building application fields in the future, opening up new markets; ③ The domestic mainstream is still diesel-driven, while the international market is 83% with arms and 39% with armsFor electric / hybrid drive, the replacement of the drive method is also the only way for development.

Dingli’s new arm-type expected cut-fork scissor-and-fork layout: ① The center of gravity of the product design is shifted down, the failure rate is close to zero, and the smoothness is better than imported products; ② The load capacity is increased to improve product efficiency;Model structural parts are 90% universal, chassis parts, electrical components, etc. are universal, greatly reducing the cost of the leaser.

It is understood that Dingli’s new arm test is expected to have no failure conditions, and customers have feedback that its quality control is very good, and it is expected to be massive in 20 years.

Continue to strongly recommend the quality company Zhejiang Dingli!

The domestic aerial work platform industry has a short history of development, and its holdings far exceed the overseas expansion. It is still in the market introduction period.

Driven by factors such as the declining demographic dividend, increased safety awareness, construction efficiency requirements, and diverse construction scenarios in recent years, the application field of aerial work platforms has gradually expanded and the degree of expansion has increased. From the original focus on factory buildings and venues to other areas,Advertisement installation, municipal engineering, infrastructure construction and other areas have further improved their coverage.

At present, China has only 9.70,000 units, industry experts expect to reach 800,000 units in 10 years, only to enter the high growth stage in 2020, the industry is expected to maintain a growth rate of more than 30% in the next 3-5 years.

We are optimistic about the growth of the aerial work platform industry and the steady growth of Zhejiang Dingli. It is estimated that the net profit attributable to mothers will be 6 in 19/20.

22 ppm / 9.

20,000 yuan, the corresponding PE is 37.

7 times / 26.

0 times, maintaining a highly recommended -A rating.

Risk warning: foreign exchange fluctuations; raw material prices rise.