Xu Ji Electric (000400) 2019 Annual Report Performance Preview Comment: Business Cycle Welcomes Performance

Xu Ji Electric (000400) 2019 Annual Report Performance Preview Comment: Business Cycle Welcomes Performance
The company released the 2019 performance forecast, which is expected to achieve net profit attributable to mothers3.9?4.40,000 yuan (ten years +95.33%?120.37%), the internal performance of the business cycle came, and the company adjusted its EPS forecast for 2019/2020/2021 to 0.43/0.77/0.73 yuan, with reference to the company’s assessment level during the last UHV construction period, giving the company 18 times PE in 2020 as a reasonable estimate of the company, corresponding to a target price of 14.04 yuan / share, maintain “Buy” rating. Internal and external efforts are being made simultaneously, and the performance cashing period is coming.The company released the 2019 performance forecast, which is expected to achieve 深圳养生会所 (report and audit, the same below) net profit attributable to the mother3.9?4.40,000 yuan (ten years +95.33%?120.(37%), the company ushered in the performance performance in the boom cycle, segmented industries, such as DC power transmission, smart meters, charging facilities and other areas of demand are improving, driving the company’s revenue growth; gradually, the company strengthened fine management, comprehensive gross margin furtherImprovement, the overall performance achieved rapid growth. The purchase of smart meters continues to release orders, and the new cycle incorporates new standards to meet the “volume and price rise”.In the end, the company reported that the smart meter business income4.1.6 billion (previously +39.11%), which is a fast-growing single business.The preliminary purchase of the State Grid electricity meter is expected to total about 160 trillion. Xu Jixi maintains a high-level advantage in the purchase of State Grid electricity meters. The overall market share is 5%?6%.The smart meter ushers in an update cycle, and the overall demand level is rapidly increasing. It is expected that it will continue to grow to more than 80 million in 2020-2021. The new IR46 standard is expected to be implemented in 2020. It is expected that the demand for meter will be further concentrated on the right-hand advantages.At the same time, the value of a single table is expected to increase significantly. DC power transmission orders are abundant, and the Haifeng Rouzhi project contributes new orders.In the UHV procurement in early 2019, the company won about 10 bids.USD 5.2 billion, it is estimated that 90% of the revenue can be recognized during the year, and the continuous DC business income of the foundation company is recommended. It is recommended to continue to pay attention to the construction progress of the next two HVDC projects in Baihetan-Jiangsu, Baihetan-Zhejiang, which will benefit the company in the future.Annual performance.The company announced on September 28 that the controlling shareholder Xu Ji Group won the bid for “Procurement of Converter Valve Equipment for Three Gorges Rudong Offshore Wind Power Flexible DC Transmission Demonstration Project” and won the bid amount of 3.Under the tide of wind power installations of 7.5 billion US dollars (offshore wind power will continue until the end of 2021), the flexible transmission project of offshore wind power projects is expected to accelerate development and open a new growth pole for the company’s converter valve business. The construction of the charging network continued to improve, and the leader of the charging pile developed rapidly.On January 11, 2019, the public pile 16 was previously added.40,000 (previously +116.9%), the development of the field of charge and replacement is good.The company strives to build an “Internet + charging facilities” ecosystem, which has reached the scale of 50,000 charging piles, including more than 3 DC charging piles.With a total of 50,000 units, the accumulated revenue of the smart charging and replacing business has exceeded 4 billion yuan in history, and the average annual growth rate of orders has exceeded 10%.The gradual charging pile layout will continue to accelerate in the future, and the above-mentioned business of the company is expected to breed long-term growth points. Risk factors: fluctuations in grid investment, UHV approval for construction progress is less than expected, smart meter update procurement is less than expected, and market competition is intensified. Investment Advice.As a leader in the field of power equipment, the company has benefited from the advancement of UHV construction and smart meter procurement, and the advancement of charging network construction. As the company ‘s performance cashes in, the company ‘s 2019-2021 net profit forecast is adjusted to 4.32/7.81/7.3.9 billion (previous forecast was 6.43/7.81/7.3.9 billion), corresponding to EPS forecast of 0.43/0.77/0.73 yuan, the current price corresponds to 2019-2021 PE 18.64 x / 10.31x / 10.90 x.With reference to the company’s estimated level during the last round of UHV construction, the company was given 18 times PE in 2020 as a reasonable estimate for the company, corresponding to a target price of 14.04 yuan / share, maintain “Buy” rating.