Cree Electromechanical (603960): Some large orders delivered results in line with expectations

Cree Electromechanical (603960): Some large orders delivered results in line with expectations

This report reads: The company benefited from the continuous deep cultivation of Bosch Department and Shanghai Zhongyuan’s consolidation. In Q1 2019, it achieved operating income1.

6.2 billion, an increase of 70 in ten years.

57%, ample orders in hand.

Maintain “overweight” level and maintain target price of 30.

44 yuan investment highlights: The company’s 2019 Q1 performance is in line with expectations. At present, there are ample orders in hand, maintaining the “overweight” rating and maintaining a target price of 30.

44 yuan.

The flexible automated industrial robot system business benefited from the deep cultivation of the Bosch Department, and the company achieved revenue in Q1 of 20191.

62 ppm, an increase of 70 in ten years.

57%, net profit attributable to mothers was 2厦门夜网4.05 million yuan, a year-on-year increase of 62.

03%, performance is in line with expectations.

The company’s headquarters achieved rapid growth. The subsidiary Shanghai Zhongyuan still faced the amortization of M & A intermediary expenses and the impact of minority shareholders’ equity, which contributed to changes in the company’s consolidated statements. In the future, the amortization of M & A intermediary fee amortization ended, and the subsidiary’s contribution to the company’s overall performance increased.

Maintain the expected EPS for 2019-2021 to be 0.

62, 0.

83, 1.

11 yuan, taking into account the sufficient order and the cost impact of mergers and acquisitions to reduce the impact of new products into customer trials, the company maintains the “overweight” level, maintaining a target price of 30.

44 yuan, 天津夜网 corresponding to 19 times PE49.

The company’s flexible automation industrial robot business actively embraces new energy automotive electronics and has ample orders in hand.

The company’s new chronic single 4 in 2018.

US $ 7.8 billion. Newly signed contracts focus on new energy automotive electronics (motors, electrical controls, energy recovery, etc.), with abundant orders in hand.

The company achieved revenue 1 in Q1 2019.

62 ppm, an increase of 70 in ten years.

57%, net profit attributable to mothers was 24.05 million yuan, a year-on-year increase of 62.

03%.

Shanghai Zhongyuan’s overall performance contribution is small, and its contribution will gradually expand in the future.

The listed Zhongyuan’s fuel dispenser sales in 2018 were 250.

750,000 pieces, fuel pipe sales of 182.

180,000 pieces of cooling water pipes sold for 358.

800,000 pieces, achieving operating income2.

6.8 billion yuan, net profit of 2425 million yuan, fulfilled performance commitments, and estimated revenue of approximately 60 million yuan in Q1 2019. Considering the amortization of M & A intermediary fees and minority shareholders’ equity, the current contribution of Shanghai Zhongyuan to the company’s net profit will decrease, and M & A expenses will be reduced in the futureWhen the amortization ends, its contribution to the company’s performance will increase significantly.

Catalyst: Shanghai Zhongyuan’s performance release, Bosch related large orders landing risk reminder: less than expected production capacity, less than expected revenue recognition