China Sports Science & Technology (603679): Revenue and Orders Maintained Steady Increase of Excess Cash in Hand to Provide Performance Growth Guarantee
The company’s latest report for the third quarter of 2019, the third quarter before 2019 achieved revenue5.
2.5 billion, an increase of 40.
05%; net profit attributable to mother 0.
800,000 yuan, an increase of 70.
The opinions are as follows: The smart street light project has helped to steadily increase revenue, and the gross profit margin has increased significantly. The company completed its operating income in the first three quarters of 20195.
2.5 billion, an increase of 40.
05%, a significant increase of 30% over the ten years of 2018.
For the 43 averages, the growth rate in the first three quarters was 3 respectively.
6% / 24.
0% / 108.
Since last year, the company has successively won orders in the field of smart street lights, including Lijiang, Chengdu Shuangliu District, and Chengdu Ecological Park restoration project, and reached a strategic cooperation agreement on smart street lights with Renshou County of Meishan City. Ample orders may help the company’s product end andRevenue at the project end steadily increased.
Previous company gross margin was 37.
61%, an increase of 4 from the previous value.
The 27 grades may increase the proportion of revenue contributed by smart street light-related projects with high gross profit margins.
The company has an early layout of smart street light projects, a full range of products, and strong design and research and development capabilities. Against the background of rapid growth in demand for smart street light construction, the company’s performance continues to steadily improve.
The period expense ratio was significantly reduced, and R & D investment was increased to ensure that the period expense replacement of competitive advantage companies13.
57%, a decrease of 3 per year.
Including sales expenses 4.
66%, down 2 each year.
36 units; administrative 无锡桑拿网 expenses 5.
72%, down 1.
1 total, budget growth is mainly due to the rapid growth in revenue this year, the scale effect and significant growth; financial expenses 0.
27%, with an increase of 0.
22 units; R & D expenses 2.
91%, which remained basically unchanged. With the rapid increase in revenue, the company’s R & D expenses also increased.
The company accrues 0 for asset impairment and credit impairment.
21 trillion, an increase of 0 from the previous value.
Taken together, the company’s net interest rate is 15.
29%, an increase of 2.
7 single, and achieved 0 net profit at the same time.
8 trillion, the same increase of 70.
The amount of cash flow from operating activities increased slightly, and the issuance of convertible bonds in the future will enhance the company’s 杭州夜网 capital advantage.
6082, a decline of 12 every year.4 units; the company’s payout ratio was 0 during the same period.
8375, down 8 every year.
Net cash flow from previous operating activities decreased by zero.
8.2 billion, an increase of 0 from the previous value.
At the end of September 2019, the company’s assets and liabilities were restructured44.
87%, an increase of 13 earlier.
51 units, mainly because the company’s short-term operating liabilities and bank debt have improved due to the advancement of the project.
The company announced in the middle of the year that it plans to issue no more than two.
The convertible corporate bonds of USD 300 million will be supplemented by the liquidity of the issuance and restructuring of the company, improving the company’s overall cash flow structure, effectively reducing the company’s funding pressure, and ensuring the smooth implementation of the project.
At present, the only smart street lamp project listed on the market has a first-mover advantage in the field of 5G site resource operation. In June, the Ministry of Industry and Information Technology issued 5G commercial licenses to China Telecom, China Mobile, China Unicom, and China Broadcasting and TV. This is an important step in 5G commercial promotion.
In addition, according to the latest news released by the Ministry of Industry and Information Technology, more than 80,000 5G base stations have been previously opened. At the end of September, 21,473 5G base stations were completed in Guangdong, ranking first in the country.
With the advent of the 5G era, high-frequency ultra-dense networking will inevitably generate demand for small base stations, which will promote the construction of small base stations. The installation of small base stations on smart street lights will be one of the most feasible ways. Therefore, the arrival of 5G will soonGenerated a large demand for smart street lights.
Against the background of the rapid increase in industry demand, the company, as a leader in the smart streetlight engineering industry, has significant advantages in terms of research and development, delivery capabilities, and capital, and is expected to fully grasp the industry’s development potential.
Investment recommendations The company’s first three quarters of performance have maintained rapid growth, with gross margins significantly improved, and smart street light projects gradually increasing the company’s profitability.
The new 5G infrastructure will open up hundreds of billions of new markets for smart street lights. The company has an early layout of smart street lights, a comprehensive category, and strong design and research and development capabilities. At the same time, it will actively cooperate with equipment vendors, operators, and Internet giants such as Huawei, towers, and strive to develop smart street light products.And project operations to achieve higher returns and open up vast growth space.
In summary, we maintain our “Buy” rating on the company.
Temporarily maintain the company’s net profit for 2019-2021.
27 trillion, corresponding to 32, 21, 16 times.
Risk reminder: The growth of long-term fixed asset investment is accelerating and the company’s business repayment is not up to expectations