Sina tip: This is a research report column, which is only an analyst's personal views and opinions on a stock, not a formal news report. Sina does not guarantee its authenticity and objectivity. All effective information about the stock is subject to the announcement of the Shanghai and Shenzhen Stock Exchanges. Investors are respectfully advised to pay attention to the risks.
Changjiang Securities
The company's main business income in the first three quarters increased by 2.25% year on year, of which the main business in the third quarter declined by 5.09% year on year, showing a sustained slowdown in growth. The main reason for the continuous slowdown of the company's main business growth is the continued depression of the downstream ice washing industry. In the context of the policy's overdraft of domestic demand, the domestic refrigerator and washing machine production in January August fell by 4.72% and 0.20% respectively year on year; However, the company's overseas market business grew significantly, from Samsung (Weibo) And LG and other overseas customers' orders continued to increase. Among them, a memorandum of cooperation worth 600 million was signed with LG in February, and now the revenue has reached 266 million yuan.
During the reporting period, the gross profit rate of the company was 11.44%, down 3.47 percentage points year on year. On the one hand, the reason for the decline of gross profit rate is that the company appropriately reduces product prices in order to win customer orders in the context of slowing demand; On the other hand, the sales volume of VCM products with relatively high gross profit margin has declined, and the change of product structure is also one of the reasons for the decline of gross profit margin. In addition, with the expansion of the company's overseas business, the proportion of export income with relatively low gross profit margin has increased significantly, which also led to a decline in its gross profit margin.
The company's period expense rate in the first three quarters was 5.87%, up 0.22 percentage points year on year. The sales expense rate increased by 1.06 percentage points, mainly due to the increase in export freight and agency fees; However, the administrative expense rate and financial expense rate declined by 0.58 and 0.27 percentage points respectively, making the total expense rate rise slightly. On a quarterly basis, the cost rate in the third quarter fell 0.76 percentage points year on year, and the management and financial cost rates fell 1.17 and 0.67 percentage points respectively, which was the main reason for its year-on-year improvement.
The operating profit of the company in the first three quarters fell by 43.38% year on year, which was due to the decline of gross profit rate on the one hand, and the rise of expense rate on the other hand. In addition, the increase in the provision for bad debts increased asset impairment losses by 451.71% year on year, which also partly led to a sharp decline in operating profits.
The net profit attributable to the shareholders of the parent company decreased by 35.07% year on year, which made the growth slightly better than the operating profit. The main reason was that the non operating income increased by 181.03% year on year due to the receipt of government incentives.
We expect the company's EPS to be 0.237, 0.314 and 0.370 yuan respectively in the next three years, corresponding to the current share price PE of 42.50, 31.99 and 27.17 times, maintaining the rating of "prudent recommendation".
