Guodian NARI (600406) Quarterly Report Comment: Overall Stable Performance, Expected Performance Improvement

Guodian NARI (600406) Quarterly Report Comment: Overall Stable Performance, Expected Performance Improvement

Revenue performance growth, eliminating special factors and still maintaining growth The company announced the third quarter report of 2019, and the first three quarters of revenue were 171.

80,000 yuan, an increase of 0 in ten years.

12%, third quarter revenue 62.

4.6 billion, down 5 every year.


According to data from the National Energy Administration, grid investment in January-September replaced 15.

2%, the temporary project progress has a certain impact on the income situation.

Net profit attributable to mothers in the first three quarters of 21.

46 trillion, down 7 a year.

32%, Q3 returns to net profit of mother 9.

4.5 billion, a year down 1.


After excluding the impact of the adjustment of accounting standards last year, the company’s net profit attributable to its parent increased by approximately 8% in the first three quarters.

In the first three quarters of the company’s revenue, it is expected that the power grid information and communication business will grow. After eliminating the impact of the distribution network leasing repurchase of about US $ 1 billion in the same period last year, the power grid business will also increase, and the overall development situation remains stable.

The growth of gross profit margin increased, and the improvement of profitability and research and development improved the company’s comprehensive gross profit margin in the first three quarters of 28.

92%, increase by 1 every year.

21 points.

Gross profit margin for the third quarter was 31.

37%, an increase of 3 per year.

35 points.

The increase in product ratio The decline in the total package ratio and the increase in the proportion of high-margin ICT products are the main factors for the increase in gross profit margin.

The company’s overall expenses for the first three quarters14.

76%, rising by 1 each year.

84pct, of which the overall expense ratio in the third quarter was 14.

03%, increase by 2 every year.

86 points.

R & D expenses for the first three quarters of the company6.

04 million, R & D expense ratio reached 5.

92%, a year to raise 0.

46 points, of which R & D expenses in the third quarter3.

8.7 billion, with a R & D expense ratio of 6.

19%, an increase of one year.

33pct, R & D is committed to improving significantly.

The overall order situation has improved, and the construction period will generally usher in the third quarter. Due to the impact of the flood of power IoT and the delivery of UHV-related bidding projects, the company’s order is expected to show an overall growth trend, and the order growth rate will be significantly reduced by half a year.

At the same time, the decline in distribution network general contracting business narrowed significantly in the third quarter.

As the key construction direction of the State Grid Corporation of China in the fourth quarter, it is expected that new bidding projects will be launched in the pilot project of the Internet of Things of Electricity at the same time. At the same time, the bidding projects will be concentrated in the fourth quarter, and the company’s performance is expected to be guaranteed.

Investment suggestion The company is an absolute leader in secondary power equipment, and is deeply involved in the construction of the ubiquitous electric power Internet of Things.

We estimate the company’s net profit attributable to its parent to be 46 in 2019-2021.19, 53.

63 and 62.

3 billion, corresponding to 22, 19 and 16 times the current expected PE.

Maintain the company’s reasonable value 24.

24 yuan / share, maintain “Buy” rating.

Risks suggest that the investment in the power 天津夜网 grid is less than expected; the ubiquitous power IoT construction is less than expected.