Dongmu (600114): Business performance in line with expectations in the second half of the business is expected to pick up and keep buying!

Dongmu (600114): Business performance in line with expectations in the second half of the business is expected to pick up and keep buying!

Key points of investment: The first half of 2019 deducts non-attributed net profit for ten consecutive years.

47%, in line with expectations!

In the first half of 2019, the company realized operating income8.

65 ppm, a decrease of 16 per year.

27%, net profit attributable to mother is 57.08 million yuan, which is extended by 71 every year.

52%, corresponding to a basic income of 0.

09 yuan; including net profit of 52.93 million yuan deducted from non-attribution, every 64 bits.

47%; including the 北京夜网 second quarter of the single quarter, the company achieved sales revenue4.

33 ppm, a decrease of 13 per year.

68%, unchanged from the previous month, and achieved a net profit of RMB 34 million, at 72 intervals.

35%, an increase of 50 from the previous month.

58%, overall performance is in line with expectations!

  Four consecutive quarterly reports show that the bottom of the results fluctuated, waiting for the turning point of the industry to come!

Since the third quarter of 2018, the company’s single quarter sales revenue has always been at 4.


The 700 million fluctuations are mainly affected by multiple factors such as the switching of the National V and National V standards, and the impact of changes in the external environment of China and the United States on customer purchases and other factors!

According 苏州桑拿网 to the current trend, the improvement of industry orders still has to wait for some time!

Due to fluctuations in orders at the automotive end and increased revenue at the end of the magnetic materials, the company’s automotive powder metallurgy business accounted for 60% of the total revenue at the peak and was changed to 53% in the first half of 2019; the operating rate was not full production (income 50Over 100 million) when the operating rate can exceed 85%) and the increase in the proportion of low-margin business structure suppresses the company’s comprehensive business gross profit margin. In the second quarter, the company’s comprehensive business gross profit margin was 25.

72%, down 1 from the first quarter.

14 averages, enough to continue the trend of improving gross margin!

In the first half of 2019, the company’s R & D expenditure was 5,241.

440,000 yuan, an annual increase of 3.

09%, R & D expenses as a percentage of sales revenue continued to increase, which is the basis for the company’s future revenue growth.

Reported volume, net operating cash flow of the company1.

5.9 billion, higher than net profit, showing that the company still has good bargaining power in the upstream and downstream of the industry!

In the magnetic materials business, the revenue in the first half of 2019 was stable, and the gross profit margin decreased year by year8.

75 up to 26.

29%, mainly due to the new plant put into production but the revenue has not kept up and the implementation of the industry card strategy sacrificed part of the profit compression strategy!

  Subsequent extension of endogenous two-wheel drive, the repurchase of shares has progressed in an orderly manner.

In the announcement of the resolution of the 30th meeting of the 6th Board of Directors of the company, it was disclosed that the board of directors agreed that the company would use its own funds or self-raised funds to jointly invest in Ningbo Dongmu Guangtai Enterprise Management Partnership (limitedPartnership), the registered capital is 2.

$ 5 billion, of which the company is a limited partner and contributes in cash2.

00 trillion, accounting for 80% of the registered capital.

00%, agrees that Ningbo New Jinguang Investment Management Co., Ltd. is the general partner of the target partnership enterprise and performs partnership affairs on behalf of the target partnership enterprise.

In addition, the company disclosed in the 2019 Interim Report that the company has used 1.

9 trillion repurchased 27.8 million shares, and actively safeguard the company’s value!

  Investment suggestion: The bottom feature of performance is obvious. The upward inflection point will drive the gross profit margin to increase in the same direction, the net profit will be more flexible, and the buy rating will be maintained!

From the perspective of operating cash flow and the proportion of R & D expenses, the company’s industry competition is particularly strong, and from the perspective of revenue, the gradual trend has stopped, waiting for subsequent improvements to occur!

We believe that starting from the second half of 2019, the company’s single quarter profit will continue to improve month-on-month, and considering that the company may receive 2 from the demolition in 2019.63 trillion of land compensation, therefore raised the profit forecast for 2019 to 4.

3.6 billion (previous forecast was 3.

30,000 yuan) and maintain the net profit forecast for 2020-2021.


94 trillion is unchanged, corresponding to a current dynamic PE of 9 for 19 years.

0X, considering that the company’s potential future cash acquisition will strengthen the company’s industrial competitiveness, we maintain the buy rating!