Depth-Company-Guodian Nanrui (600406): Three quarterly results in line with expected profitability continued to improve

Depth * Company * Guodian NARI (600406): Three quarterly results in line with expected profitability continue to improve

The company released the third quarter report of 2019, and the decline in performance was 7% in line with expectations.

The company leads the smart grid and informatization upgrade, benefiting from the construction of UHV and ubiquitous electric power Internet of Things; maintaining the level of holdings.

Key points of the official rating The three quarterly report results fell by 7% in line with expectations: The company released the third quarterly report for 2019 and achieved operating income of 171 in the first three quarters.

80 ppm, an increase of 0 in ten years.

12%; net profit attributable to shareholders of listed companies21.

46 trillion, down 7 a year.

32%, the corresponding return is 0.

47 yuan; after ten years of non-profit growth 4.

34%; excluding the effect of changes in annual accounting estimates to increase thick profits, the third quarterly earnings increase increased by about 4.


The company achieved operating income of 62 in the third quarter.

4.6 billion, down 5 every year.

41%, down 13 from the previous month.

05%; realized net profit attributable to shareholders of listed companies9.

4.5 billion, a year down 1.

93%, a month-on-month decrease of 15.


The company’s three quarterly results are in line with expectations.

The gross profit margin continued to rise, and the cost level gradually decreased: the company’s comprehensive gross profit margin for the first three quarters was 28.

92%, increase by 1 every year.

21 units, the benchmark also has 1 in the semi-annual period.

Improvement of 40 averages; gross profit margin 31 in the third quarter.

37%, an increase of 3 per year.

35 units, an increase of 2 from the previous quarter.

07 averages.

In terms of expenses, the company’s expense ratio during the first three quarters was 14.

76%, an annual increase of 1.

84 averages, but the ratio is 15 semiannual.

18% vs. 23 in the first quarter.

The 08% level has dropped significantly.

DC UHV and flooding promote the release of subsequent results in the construction of electric power Internet of Things: At present, UHV DC lines in northern Shaanxi-Wuhan, Qinghai-Henan, Yazhong-Jiangxi, 武汉桑拿 etc. are under construction within the scope of the national grid, and tenders for main equipment have been completed, The company’s converter valve, transformer, DC control system and other equipment at both ends of the bid, is expected to enter the peak period of equipment delivery next year.

Ubiquitous Power Internet of Things signed large-scale key projects such as the Jiangsu Integrated Energy Service Energy Efficiency Monitoring Demonstration Project and the Smart Supply Chain of Mengdong Power Company.

Recently, the State Grid Corporation of China issued a white paper that flooded into the electric power IoT. It is expected that the subsequent flooding will accelerate the development of electric power IoT construction. The key projects the company participates in are also expected to contribute to the operating results.

To estimate the three quarterly report of the combined company, we adjusted the company’s forecast for 2019-2021 to zero.



31 yuan (the original forecast data was 0.

31 yuan), corresponding to a price-earnings ratio of 22.



3 times; maintain overweight rating.

The main risks faced by the rating exceeded the expected grid investment; generally in the electric power Internet of Things, the UHV construction progress was slower than expected; new business progress was not as expected.