Lixun Precision (002475): Third Quarterly Report Exceeds Expectations

Lixun Precision (002475): Third Quarterly Report Exceeds Expectations
Event Overview The company released the 2019 third quarter report: the report merged and the company realized operating income of 163.950,000 yuan, an increase of 62 in ten years.24%, achieving net profit attributable to shareholders of listed companies.860,000 yuan, an annual increase of 66.74%; from the beginning of the year to the end of the reporting period, the company achieved operating income of 378.36 ppm, an increase of 70 in ten years.96%, achieving net profit attributable to shareholders of listed companies.880,000 yuan, an increase of 74 in ten years.26%.四川耍耍网The third quarterly report also disclosed the company’s forecast for the 2019 annual operating performance: the company expects that the net profit attributable to shareholders of listed companies in the year 2019 will be 39.48 to 42.2 ppm, with annual growth between 45% and 55%. Analysis and judgment: The advantages of the platform continue to develop, and the performance in the first three quarters exceeds expectations. The company adheres to the development thinking of “old customers, new products; old products, new customers, new markets.”The company’s net profit attributable to mothers in the first three quarters of 2019 further increased by 74.26%, exceeding the semi-annual report of 2019. The company expects an increase of 50% from January to September 2019?In the 60% range, the rapid growth in performance was mainly due to the extension of the company’s main businesses and the smooth production of new products as expected. The effect of cost reduction and efficiency improvement is significant. The gross profit slightly reduces the net profit and improves the company’s highly expected return on investment. It continues to optimize operating indicators such as ROE. The improvement of the overall financial management system and the control of operating expenses reduce cost and efficiency. Specific measures include continuousStrengthen internal accounting period and inventory management, and continuously improve automation and IT system capabilities.In the first three quarters of 2019, with a slight decline in gross profit for ten years, the company’s net interest rate increased from 7 in the first three quarters of 2018.44% increased to the current 8.00%, average average return on net assets 17.04%, an increase of 5 units over the same period of the previous year, and the effect of reducing fees and increasing efficiency has appeared. Investment suggestions Considering that the company’s performance exceeded expectations in January-September 2019, we forecast the company’s preliminary revenue growth rate for 2019 from 40.1% was raised to 55%. At the same time, the revenue growth rate in 2020 and 2021 and the net profit in 2019-2021 were also adjusted appropriately.We expect the company’s revenue to be 555 in 2019-2021.670,000 yuan, 722.3.8 billion, 902.970,000 yuan, the ten-year growth rate was 55%, 30%, 25%; net profit attributable to mothers was 40.5.5 billion, 54.9.4 billion, 69.5.3 billion, the previous growth rate was 48.93%, 35.50%, 26.55%; corresponding EPS are 0.76 yuan, 1.03 yuan, 1.30 yuan.We maintain a PE multiple of 35 times 2020 as defined in the previous first coverage report with a target price of 36.05 yuan, maintain “Buy” rating. Risks indicate that the expected number of core large customers exceeds expectations; macroeconomic downturn and systemic risks; 5G business progress exceeds expectations.