McGmitter (002851) Semi-annual Report Comments: Performance Maintains High Growth, Business Segments Show Good Momentum
Key points of investment: The company released its 19-year semi-annual report, reporting a series of realized operating income.6 billion, an annual increase of 61.06%; realize net profit attributable to shareholders of listed companies.6.2 billion, an annual increase of 148.07%; realizing net profit attributable to 北京夜网 shareholders of listed companies1.4.1 billion, an annual increase of 175.63%.  The company’s performance is in line with our expectations.  Ping An’s point of view: The performance has maintained rapid growth, and the consolidated subsidiaries have contributed profits: the company achieved operating income in 19H116.6 billion, an annual increase of 61.06%, continuing the high growth momentum since 18 years; achieving net profit attributable to shareholders of listed companies1.620,000 yuan, an increase of 148 in ten years.07%.The growth rate of net profit attributable to mothers is higher than the growth rate of revenues. The company’s acquisition of three subsidiaries of Jardine Sanitary, Shenzhen Drive and Shenzhen Control in 18 years, and contributed profits./ 99.7% / 100%.The total commitments of Jardine Sanitary, Shenzhen Drive and Shenzhen Control for 19/20/21 are 1 respectively.83/2.35/2.82 million, 18 years have exceeded the performance commitments, it is expected to continue to contribute profits in the next three years.  The overall business growth momentum is good, and the gross profit margin has dropped slightly: the company’s smart home appliance electrical control business achieved revenue7.40,000 yuan, an increase of 23 in ten years.16%; industrial power business achieved revenue 2.460,000 yuan, an increase of 43 in ten years.62%; revenue from industrial automation business1.530,000 yuan, an increase of 26 in ten years.40%; revenue from new energy vehicles and rail transit business5.52 ppm, an increase of 238 in ten years.82%.Due to the decrease in orders from Xiaomi in the smart bathroom business in the first half of the year, the growth rate of the home appliance sector business has improved from earlier Q1.Affected by the decline in the gross profit margin of the new energy vehicle business and the significant increase in its revenue, the company’s overall gross profit margin was 24.84%, ten years ago4.32 units.It is expected that the land completion project will be accelerated and the company’s new customers such as Wrigley will expand smoothly. The smart bathroom business is expected to return to a high growth track.  The new energy vehicle business benefited from BAIC’s heavy-duty mid-to-high-end models and maintained explosive growth: The company is the main supplier of electronic control for BAIC ‘s EU and EX models, providing PEU products to BAIC with a value of about 1 million units.In the first half of the year, BAIC’s new energy vehicle sales were 6.520,000 vehicles, an annual increase of 21.6%, of which the sales of EU models controlled by the company’s main power supply were 4.910,000 vehicles, an increase of nearly 15 times in ten years.BAIC’s sales target for new energy vehicles this year is 220,000 units. It is expected that the company’s electronic control products will maintain rapid growth in the second half of the year. In addition to BAIC, the company’s business development in automobile companies such as Dongfeng and Geely will continue to contribute incrementally.  The advantages of the platform layout are obvious, and new business development is smooth: the company’s R & D expenses account for about 10% year-round. The continuous high R & D investment has enabled the company to build on the basis of power electronics and related control technologies, use power conversion hardware technology, and digitizePower control technology and system control and communication software technology are the core technology platforms of the architecture, and the product layout is realized on this platform.At present, the company’s intelligent welding machine business has a good momentum of development, and its main customers include large-scale manufacturing state-owned enterprises. PV inverters and intelligent oil extraction equipment have gradually realized batch delivery. It is expected to benefit from the growth of investment in the oil and gas industry. The company’s intelligent oil extraction equipment is expected to gradually realizeBegan heavy volume and became the company’s next growth point.  Investment suggestion: The company takes power electronics technology as its core, and has achieved a good business layout in four major areas: smart home appliances electronic control, new energy vehicles and rail transit, industrial automation and industrial power supply. With the rapid growth of existing businesses, newThe business is also in the preliminary harvest stage.The company benefited from the continuous explosion of new energy vehicle business in the short term. In the long term, the company’s commitment on the core technology platform will continue to promote the company’s business development. We maintain forecasts for the company’s net profit for 19/20/21 of 3 respectively.11/3.90/4.880,000 yuan, the corresponding EPS is 0.66/0.83/1.04 yuan, corresponding to the closing price PE on August 14 were 29.4/23.3/18.6. Maintain the “Recommended” level.  Risk reminders: 1) If the sales of new energy vehicles are less than expected, it will interfere with the company’s sales of new energy power electronics and drive products and affect the company’s profits; 2) If the market demand for smart home appliances is less than expected, the company willBusiness in the field of home appliance electrical control will be affected; 3) If the price of raw materials such as IGBT rises, it will affect the company’s gross profit margin.