Halma Technology (002595) Third Quarterly Report Review: Q3 Revenue, Net Profit Increases Over 20%

Halma Technology (002595) Third Quarterly Report Review: Q3 Revenue, Net Profit Increases Over 20%
Q3 revenue / net profit growth exceeded 20% 1) The company achieved revenue 31 in the first three quarters.36 ppm, an increase of 18 in ten years.11%, of which Q3 is 11.US $ 6.6 billion, a new quarterly revenue, and a quarter-on-quarter growth of 25.42% / 21.02%.We expect that the mold business will grow rapidly, and the foundry and large parts processing business will maintain rapid growth.Driven by Q1, the company’s gross profit margin rose in the first three quarters and dropped by zero.For 87 units, changes in the cost of raw materials and adjustment of the product structure are the starting points for changes in gross profit margin. Among them, Q3 gross profit margin change / moment change -0.13 / -0.11 units. 2) Net profit attributable to mothers in the first three quarters6.50 ppm, an increase of 12 in ten years.78%, the growth rate in the first half of the year accelerated, of which Q3 was 2.76 ppm, an increase of 22 in ten years.89%.Expenses during the first three quarters8.43%, down quarter by quarter, and rose by 0 in ten years.For 3 units, sales / administration expenses are still growing rapidly.3) Net operating cash flow in the first three quarters -1.65 trillion, down 180 a year.64%, which is the reason for the repayment, the termination of the third quarter bill receivables and accounts receivable reached 18.180,000 yuan, an increase of 9 at the beginning of the review.72%, an increase of 20 per year.77%, leading to an increase of only 4 in the first three quarters of operating cash inflows.03%; long-term operating cash growth has grown rapidly, and it has grown in the first three quarters of the year.47%. The company benefits from the release of high-quality tire production capacity, and the growth of casting and large parts processing 1) and the opportunity of tire molds are: ① From the perspective of industrial transfer, we believe that the transformation into the continuous improvement of the level of mold processing technology and the internationalization of international tire company mold procurementAs the degree increases, it is expected that the proportion of major international tire companies in purchasing tire molds in advance will continue to increase.② From the perspective of the competition in the automotive industry, competition in the industry has intensified, new cars have been launched, and the pace of retrofitting of old cars has been accelerating. The cycle has become shorter and shorter. As a result, the specifications and models of supporting tires have continued to increase, and the pattern updates have become increasingly alternating.Automobile tire models and patterns are updated passively or actively. Some tire molds are often replaced before the replacement arrives, driving the demand for tire molds.We believe that the increasing car ownership will be a strong support for the rapid growth of the domestic tire mold industry.2) Conversion of giants such as Bridgestone, Goodyear, German horse brand and other companies have successively expanded their production capacity. At the same time, exquisite, Senkilin, Triangle, GM and other tire companies have invested in expansion and actively deployed overseas markets. We believe that in the future these high-qualitySuccessive releases of production capacity will help increase demand for molds.As an industry leader with technology and capacity advantages, the company is expected to fully benefit in the future.3) The release of production capacity, the continuous improvement of customer recognition and the recovery of orders for downstream fan components, the company’s casting and large parts processing business is expected to continue to grow rapidly. Earnings forecast, maintain “overweight” rating We maintain earnings forecast unchanged: the company’s EPS is expected to be 1 in 2019-2021.04/1.28/1.58 yuan / share, corresponding to 18/15/12 times PE for 2019-2021.Taking into account the company’s global tire mold leader scale, profitability expansion, management efficiency continued to improve, maintaining the “overweight” level. Risk warning: the risk of economic and trade friction; the boom in the tire and mold industry surpasses expectations;天津夜网 the rise in raw material prices exceeds expectations; the growth in cost and expenses exceeds expectations; the output (internal) exceeds expectations.