Zhenjiang (603507): Rising steel prices and slow progress of the new production line; performance is expected gradually

Zhenjiang (603507): Rising steel prices and slow progress of the new production line; performance is expected gradually

Event: The company announced a quarterly report today and realized revenue 2.

89 ‰, an increase of 115% in ten years, to achieve net profit attributable to mother.

5.0 billion, a year-on-year decrease of 42.

07%, commented on this as follows: 1. The supply of large customers resumed normal and the merger and acquisition consolidated, driving the company’s revenue to grow rapidly.

In the end, the adjustment of the supply rhythm caused by the upgrade of Siemens products gradually returned to normal until the last 4 months. At present, the order of the major customer has resumed the normal bidding rhythm; another company acquired Shanghai Detec Precision Fastener Co., Ltd. at the end of last year.Consolidation has led to a significant increase in revenue.

2. There are several reasons for the decline in the company’s performance.

A certain gross margin fell to a certain extent. In the first quarter, the comprehensive gross margin reached 21%, a decrease of 4 percentage points from the same period last year, mainly because the company’s average steel purchase price increased by a certain amount from last year, and the company’s labor costs increased and new investment projects were newly built.Impact of the conversion of plant and equipment (the average size of the company’s fixed assets in the first quarter doubled compared with the same period last year, but due to environmental protection factors, some production line swaps were not completed, and the new 南京夜网论坛 plant revenue contribution was limited); one was due to the accounts receivable at the end of the first quarterThe absolute value increased by 70% compared with the same period of last year, resulting in a certain increase in asset impairment losses. This is mainly related to the company’s revenue recognition and the time difference between the resettlement of the payment. The company’s customers are good, and the risk of accounts receivable is small; the other is the company.The decline in wealth management funds has caused the company’s investment income to decline to a certain extent.

3. The company’s long-term logic remains unchanged.

First, offshore wind power has entered a rapid development channel, and the industry’s prosperity continues to increase. Second, the company’s offshore offshore wind oligarch customer 成都桑拿网 core industry chain resources have too many orders on hand, and the performance is highly deterministic and sustainable. Finally, the company’s major customer expansion and businessThe category expansion has initially landed, and the second take-off is imminent!

Performance forecast and estimation: Based on the worse-than-expected progress of the new production line, the uncertainty of the photovoltaic industry and steel prices, and the transportation of operation and maintenance vessels, we revised the company’s 2019-2021 performance to 1.

9 billion, 3.

0 billion, 3.

700 million, corresponding to pe is 14 times, 9 times, 7 times, given a “buy” rating.

Risk warning: Customer development is less than expected, fastener business is less than expected, operation and maintenance business is less than expected, exchange rate rises sharply, and steel prices rise