CITIC Heavy Industries (601608) covers for the first time: Mining machinery leading special robots inject new kinetic energy

CITIC Heavy Industries (601608) covers for the first time: Mining machinery leading special robots inject “new kinetic energy”

This report reads: The downstream investment boom continues the upward trend, driving the company’s revenue, and orders continue to grow. The 18-year increase in statutory orders has increased by 27%. It is expected that robots will inject “new momentum” into the transformation and upgrading.

Investment points: Conclusion: The downstream investment boom continues the upward trend. The company’s revenue and orders continue to grow. New orders in 18% have increased by 27%. We expect robots to inject new momentum.

It is expected that the return to mother’s profit for 2019-21 will be 1.

69, 1.

91, 2.

1.7 billion, 0 for EPS.

039/0.

044/0.

050 yuan, based on the company’s future high growth in robotics business, with reference to the industry average PB level (19H1 average PB 2).

6X), considering that the future growth of the robot business is better, at least a certain premium should be given to 19H1 2.

8 times PB, target price 4.

67 yuan, given a “cautious increase” rating.

The downstream investment boom has driven the industry to continue to pick up.

The company’s downstream products are mainly used in the mining and building materials industries. Starting in 2017, the profits of the mining industry bottomed out and increased in 2017-18.

6 times and 40%, 19H1 revenue, total profit increased by 5 respectively.

3% and 4.

2%, profit margin (total profit / revenue caliber) reached 12.

9%.

In addition, the statistics bureau’s caliber shows that the number of enterprises above designated size is steadily decreasing, and the recovery of production capacity and supplementary demand is expected to catalyze expansion.

Drive demand for heavy machinery to pick up.

The company’s revenue and orders continued to increase, and its operating efficiency improved significantly.

In 18 years, the company’s revenue was 5.2 billion, an increase of 12.

6%, return to the mother’s profit 1.

0.6 billion, net interest rate 2.

0%, a significant increase every year.

Under the background of the continuous recovery of the downstream industry, the company’s order acceptance is good. The increase in effective orders in 18 years increased 27% each year to ensure 19 years of growth.

Operating scale, reducing the company’s continued advancement in deleveraging, interest-bearing net liabilities (interest-bearing liabilities-monetary funds) steadily and steadily decreased; reduced procurement and management costs, and the 18-year expense ratio significantly decreased, thereby leading to future profit elasticity under profittoughness.

High steel prices have eroded gross margins, and we are looking forward to the “new kinetic energy” of robots.

Steel prices continued to be high, and in 18 years the company’s gross profit margins in various sections of the company fell, and the overall gross profit margin was 24.

5% twice a year 2.

6 points.

The company is a domestic leader in special robots, with 深圳SPA会所 robot and intelligent equipment revenues of 1 billion in 18 years and a gross profit margin of 44.

8%, contributing nearly 200 million net profit, and look forward to injecting new momentum into the company’s transformation and upgrading.

Risk warning: industry competition intensifies, raw material prices continue to be high

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