Ocean King (002724) 2019 Third Quarterly Report Review: Growth Logic Continues Performance Dividends Appearing

Ocean King (002724) 2019 Third Quarterly Report Review: Growth Logic Continues Performance Dividends Appearing

Company dynamics The company released three quarterly reports on October 23, and achieved revenue of 8 in the first three quarters.

8.7 billion, a 10-year increase of 10.

74%; net profit attributable to mothers1.

4.0 billion, an annual increase of 30.

23%; net profit deducted from non-attribution to 0.

8 billion, an annual increase of 47.

50%; the company achieved revenue in the third quarter alone3.

3.7 billion, an annual increase of 8.

47%; net profit attributable to mother is 0.

6.4 billion, an annual increase of 38.

85%; net profit deducted from non-return to mother 0.

5.8 billion, an annual increase of 62.


Matter comment fees improved to boost performance From the third quarterly report, the company’s gross profit margin in the first three quarters was 68.

67%, a slight increase of 0 every year.

13pct, net interest rate 11.

71%, an annual increase of 1.

75pct, return on equity 5.

43%, an annual increase of 0.

93pct, the company’s increase in net profit during the period mainly benefited from improvements in management expenses and research and development expenses; the company’s inventory turnover days were 161.

54, the same period last year was 137.

45. The increase in inventory was mainly due to the improvement of downstream demand to drive the stocking of raw materials; the company’s accounts receivable turnover days were 108.

21, 121 in the same period last year.

45. The increase in the turnover of accounts receivable was due to the company’s return management; the company’s asset-liability ratio was 8.

72%, a slight decrease of 0 a year.

19pct, current ratio and quick ratio are 8 respectively.

72 and 7.

74, compared with 8 in the same period last year.

79 and 8.


The expansion of engineering qualification business “Internet +” increased the proportion of the space ocean king project revenue less than 0.

5%, which is directly related to the company’s lack of engineering contracting qualifications.

The company announced on September 10 that it plans to acquire Ming Zhihui, a construction engineering company, which includes “the first-level 北京养生会所 professional contracting of urban and road lighting engineering”, “the first-level professional contracting of building decoration and decoration engineering”, and “the professional contracting of electronics and intelligent engineering”Qualifications such as “Level Two” and “Special Grade A for Lighting Engineering Design” are expected to significantly enhance the company’s lighting engineering business space in the future.

At the same time, the company obtains lighting application scenario data (plant temperature and humidity monitoring, equipment health monitoring, etc.) through the “lighting + Internet” business, and provides customers with multiple services through big data analysis.

The Mingzhihui project is expected to further add big data application scenarios and consolidate the company’s “data service” 武汉夜生活网 foundation.

The company expects revenue for smart lighting business to reach 1.

500 million body weight, an annual increase of about 30%.

Profit forecast and estimation We expect the company to achieve operating income in 2019-2021.6.5 billion, 23.

5.6 billion, 28.

4.9 billion yuan, an annual growth of 56.

83%, 19.

90% and 20.

90%; net profit attributable to shareholders of the parent company is 3.

07 billion, 3.

7.5 billion and 4.

8.2 billion, with annual growth of 61.

60%, 22.

28% and 28.

37%; EPS are 0.

43 yuan, 0.

52 yuan and 0.

67 yuan, corresponding to 15 for PE.

25, 12.

47 and 9.


In the next six months, maintain the “overweight” rating.

Risk reminders (1) The promotion of new product models is blocked; (2) Macroeconomic changes affect downstream demand.