Chint Electric (601877) Quarterly Comment: The low-voltage growth rate has obvious advantages over the leading faucet

Core point of view: The performance is in line with expectations, and the cash flow has improved significantly.

77 ppm, an increase of 17 in ten years.

62%, of which Q3 income is 80.

50 ppm, an increase of ten years.

67%.

Net profit attributable to mothers was achieved in the first three quarters of 28.

64 ppm, a ten-year increase2.

65%, it is estimated that the impact of the sale of generating units in the same period last year, an annual increase of 20.

46%.

In the first three quarters, the company achieved net operating cash flow of 29.

5.5 billion yuan, an annual increase of 99%.

The gross profit margin improved significantly in a single quarter, and the company’s gross profit margin for the first three quarters was 29.

41%, a decline of 0 every year.

36pct was mainly caused by the growth of photovoltaic module sales business with relatively high gross margin, but the gross margin of Q3 has reached 31.

71%, an increase of 1 per year.

At 40%, we expect that the growth rate of low-voltage electrical appliances will increase and related raw material prices will decrease.

Company expenses in the first three quarters16.

28%, a decline of 0 per year.

31 points, excellent rate management.

Generally, the potential for low-voltage growth is brought about. The photovoltaic operation is steadily affected by the recovery of grid investment and the improvement of real estate completion. It is expected that the company’s low-voltage electrical appliances growth rate will pick up in the third quarter.

The construction of the ubiquitous electric power Internet of Things focuses on the client’s 杭州评茶阁 personalization, size, needs, and improvement of the demand for low-voltage electrical appliances on the switch side. At the same time, it requires low-voltage electrical appliances for communication and intelligent monitoring.

At the end of the third quarter, the company’s operating photovoltaic power plant installed capacity was 3.

18GW, a year increase by 1.

25GW, the first three quarters of electricity revenue17.

96 trillion US dollars, an annual increase of 14.

50%, the scale and efficiency of photovoltaic operations have been effectively improved.

Investment suggestion The company’s domestic low-voltage electrical industry leader is stable and the new energy business is developing steadily.

It is estimated that the company’s net profit attributable to its parent in 2019-2021 will be 42.

03, 49.

70 and 59.

10,000 yuan, an increase of 17% in ten years, 18.

2% and 18.

7%, corresponding to 11, 9 and 8 times the current expected PE.

Maintain the company’s reasonable value35.

1 yuan / share, maintain “Buy” rating.

Risks suggest macroeconomic downturn; market demand is less than expected; product prices fall;