Goldwind Technology (002202): The first quarter results are basically in line with expectations. Focus on subsequent changes in gross profit margin.

Goldwind Technology (002202): The first quarter results are basically in line with expectations. Focus on subsequent changes in gross profit margin.
The first quarter of 2019 results are basically in line with expectations. Goldwind Technology announced the first quarter of 2019 results: operating income of US $ 5.4 billion, an increase of 40%; net profit attributable to the parent company2.3 ‰, a year-on-year decrease of 5%, corresponding to a profit of 0.057 yuan.The highest decrease in profit was mainly due to the increase in gross profit margin in the same period last year, while the expansion volume will increase at least and the improvement in the gross profit margin from the previous quarter will basically meet our and market expectations. Growth income with improved development trends increased as scheduled, and gross profit margin improved slightly from the previous quarter.Goldwind’s first-quarter operating income increased by 40% annually, mainly benefiting from the increase in wind turbine adjustments expected to increase by more than 50%, and finally increased by 850 MW installed capacity (compared with 17 + 22%).At the same time, the comprehensive gross profit margin increased by 7 percentage points from the fourth quarter of last year to 27%, thanks to the increase in the proportion of revenue from power generation business in the first quarter, and the gross profit margin of the wind turbine business stabilized. Signed orders have grown rapidly, and inventory has been actively prepared for industry rushing.The number of public tenders for wind power in China doubled to 14 in the January quarter of 2019.9 GW, the highest level in history in a single season.Goldwind signing orders increased by 18% over the end of 2018 (2.4 GW) to 15.2 GW.Taking into account the industry’s rush to install this year and the relatively tight capacity of the upstream supply chain, the company increased its inventory level to 81 at the end of the first quarter.3 billion, which will eventually increase by 63% at the end of 2018. It is expected to reduce the pressure on the gross profit margin of subsequent fans due to the tight supply of components. In the first quarter, the tender price stabilized and rose slightly, and gradually the gross profit margin was still suppressed by historical low-price orders.According to industry association statistics, 2 in the first quarter.0 MW and 2.The average bid price for a 5 MW wind turbine increased slightly from the previous quarter.5% and 1.2%, basically maintained at the level of 3400 yuan / kilowatt.However, considering that the company will execute the low-price orders in the second and third quarters of 2018 this year, we maintain the expectation 杭州夜网论坛 that the gross profit margin of wind turbines will gradually decrease by an average of five alternatives. Earnings Forecast Considering that revenue and gross margin development trends are in line with expectations, we maintain our 2019 / 20e earnings forecasts at 35 trillion and 39 trillion unchanged. It is estimated and recommended that the company’s A shares currently correspond to 2019/202013.9/12.6 times P / E, maintain recommended and target price of RMB 17.59 yuan, corresponding to 21 in 2019/2020.0/19.1x P / E, and 52% upside; the company’s H shares currently correspond to 9/2019/9.0/8.2x P / E, maintain recommended and target price of HK $ 13.26 yuan, corresponding to 14 in 2019/2020.0/12.8x P / E, and 56% upside. Risks Wind power installation volume is less than expected.Prices of upstream parts rise more than expected

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