Depth-Company-Zhejiang Dingli (603338): North American market expands sharply and results in short-term pressure waiting for arm-type investment projects

Depth * Company * Zhejiang Dingli (603338): North American market expands sharply and results in short-term pressure waiting for arm-type investment projects

The company released its semi-annual report for 2019, which reported a combined revenue of 8 in total.

500 million, an increase of 8 in ten years.

1%, net profit attributable to mother 2.

6 billion, an annual increase of 26.

8%, net of non-attributed net profit2.

3 billion, an annual increase of 23.


Key points of support levels The continued expansion of North American business has dragged down the company’s performance and actively expanded the European, Asian and domestic markets.

2019H1 company’s domestic main business income4.

0 million yuan, an increase of 35 in ten years.

2%, accounting for 51.

1%, the domestic market continued to develop, and the growth was in line with expectations; overseas main business income3.

8 ‰, a decrease of 17 per year.

1%, of which the main business income of the European market1.

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

2%, the proportion of overseas main business 38.

8% of the European market began to force, Asia and others1.

1 ppm, an increase of 21 in ten years.

8%, accounting for 28.

3%, still maintaining steady growth in the North American market1.

3 ‰, a decrease of 53 per year.

6%, accounting for 32.

9%, the gradual increase in North American market revenue has dragged down the company’s overall performance, mainly because the company has flexibly adjusted its market strategy to cope with the continued heating up of Sino-US trade frictions, explored European, Asian and domestic markets, and reduced sales in North American markets in overseas marketsTo reduce the dependence on the North American market.

Strengthened refined 成都桑拿网 management and steadily improved profitability.

Expenses during the first half of the company9.

2%, 0 per year.

8pct, in which the sales / management + R & D / financial expense ratios are 5 respectively.

3% / 5.

9% /-2.

1%, the sales expense ratio, the management expense ratio (including research and development) were basically the same, and the financial expense ratio increased gradually, mainly due to the increase in index income and the impact of exchange loss gains.

The gross profit margin of the company in 2019H1 is 41.

7%, an increase of 3 per year.

1pct, the increase in gross profit margin was mainly due to the product structure and exchange rate factors affecting the base number in 18H1, and the net profit margin was 30.

7%, an increase of 4 per year.

5pct, the company’s period of cost control 杭州桑拿网 is good, cost reduction and efficiency are obvious. In addition, other revenues such as government subsidies increased significantly to 25.47 million in the first half of the year, so the company’s net interest rate level reached a record high.

Domestic sales of arm-type products are growing brightly, waiting for the investment projects to reach production.

The domestic sales of arm products of H1 company in 2019 is 7159.

20,000 yuan, an annual increase of 88.2%, accounting for the proportion of domestic main business income.

8%, an increase of 5 per year.


The 10 new arm products developed by the company in cooperation with Magni have been produced on a small scale and have been highly recognized by customers.

At present, the proportion of arm type in the domestic market still needs to decrease. With the rapid development of the transformation industry and the continuous development of construction scenarios, the demand for arm type products is increasing.

At present, the company’s 3200 arm-type fund-raising investment project has completed the main plant, which will become the company’s new performance growth point when it is fully operational.

It is estimated that based on the company’s semi-annual performance, intensified industry competition, and the continuing impact of the Sino-US trade war, we have lowered the company’s profit forecast and expect that the net profit attributable to mothers for 2019-2021 will be 6, respectively.



1 ppm, EPS is 1.



20 yuan (previous forecast was 1.)



64 yuan), the corresponding PE is 37.



2x, based on the expected rebound in performance due to the heavy volume of new arm-type new products, we maintain a BUY rating.

The main risks facing the rating industry are intensified, competition between China and the US has intensified, and the promotion of new arm-type products has fallen short of expectations.