Zhongheng Electric (002364) company comment: performance is slightly lower than expected 5G and ubiquitous bring new impetus

Zhongheng Electric (002364) company comment: performance is slightly lower than expected 5G and ubiquitous bring new impetus

The company released the third quarter report of 2019: the first three quarters achieved revenue6.

22 ppm, a ten-year increase of 7.

23%; net profit attributable to mother is 0.

62 ppm, 29 years ago.

93%; net profit deducted from non-mother 0.

56 ‰, 30 from the previous decade.

36%; gross profit margin 37.

73%, a decline of 2 per year.

31 points; net margin 9.

46%, a ten-year average.


Single quarter: revenue in the third quarter alone2.

45 ppm, an increase of 4 per year.

50%; net profit attributable to mother 0.

21 ppm, a 56-year average of 56.

50%; deduct non-attributed net profit 0.

19 ‰, 58 years ago.

41%; gross margin 35.

40%, more than ten years.

78 points; net margin 8.

42%, a decrease of 11 per year.

16 points.

Performance was slightly lower than market expectations.

The growth rate of gross profit margin + the increase in expenses during the period resulted in a decrease in net rate, and operating cash flow needs to be improved.

The first three quarters of the company’s sales / management (including R & D) / financial expenses were 0.


21 / -0.

09 million yuan, short-term changes -3.

53% / + 6.

08% / + 43.

30%, three fee rates are 9 respectively.

52% / 19.

53% /-1.

51%, period expenses 27.

53%, an annual increase of 1.

22pct, the increase in the expense ratio during the period and the decrease in gross profit margin caused the company’s net profit in the first three quarters to fall by 5.

The company’s net operating cash flow in the first three quarters was -0.31 ‰, a sharp drop of 78.

32%, mainly due to the annual increase in cash payments related to operating activities.

The advantages of charging piles are prominent, and the entire industry chain of “cars + piles + aftermarket” is laid out.

In September 2019, the company won the competitive negotiation procurement project for electric vehicle charging piles of Zhejiang Petroleum Integrated Energy Supply Service Station, with a bid amount of 1550.

06,000 yuan, accounting for 55% (in terms of amount), ranking first, with prominent advantages; In October 2019, the company became the sole equipment supplier 杭州桑拿网 (to be awarded) of the third-generation AC charging pile tender project of State Grid Evergrande Smart Energy Service Company200 sets of trial production products need to be delivered by the end of 11 months, and the demand is expected to be 300,000 units in the next five years. While contributing to the company’s future business contribution, it will vigorously promote the layout of the entire industry chain of “vehicles + piles + aftermarket”.

HVDC benefits from the heavy demand for 5G + IDC, and the support of energy interconnection platforms is ubiquitous.

The company has been deeply engaged in the field of communication power for many years. It is a leader in high-voltage direct current power technology (HVDC). The current 5G base station layout is accelerating. It is expected to generate more than 50 billion US dollars in 5G base station communication equipment power supply space.Data center power requirements bring significant increases.

Since 2012, the company has laid out an energy internet platform to create an industrial body focusing on the energy internet. Currently, ubiquitous construction is fully advanced. The company will transform the energy internet research platform and ubiquitous electric power IoT solution to fully support the ubiquitous promotion.

Investment suggestion: The company has been cultivating power electronics and power informatization for many years, and has obvious advantages in the field of electric vehicle charging piles and HVDC. At present, it benefits from 5G construction, IDC power supply demand accelerates, “ubiquitous” comprehensive advancement and energy Internet construction.

We expect the company’s net profit attributable to mothers to reach 1 in 2019-2021.



53 trillion, EPS is 0.



45 yuan, corresponding to the closing price of PE on October 29, 2019 were 53.



1x, maintaining the overweight rating.

Risk warning: New energy vehicle production and sales are less than expected, 5G investment is less than expected, and macroeconomic growth is less than expected