Depth-Company-Haixing Power (603556): Performance Exceeds Expectations, Both Inside and Outside

Depth * Company * Haixing Power (603556): Performance Exceeds Expectations, Both Inside and Outside Blossom

The company released its 2019 Interim Report, with a 73% increase in performance that exceeded market expectations.

The company’s domestic and overseas revenues have both grown on the same track. The heavy bidding of the State Grid will help future performance growth; upgrade the rating to buy.

Key points supporting the rating The 2019H1 performance increased by 73%, surpassing market expectations: The company released its 2019 interim report, and its revenue for the first half of the year13.

$ 7.4 billion, an increase of 16 per year.

69%; net profit attributable to shareholders of listed companies2.

810,000 yuan, an increase of 72 in ten 成都桑拿网 years.

66%; profit after deduction 2

43 ppm, an increase of 60 in ten years.


Among them, 2019Q2 was profitable 2.

40,000 yuan, an increase of 80 in ten years.


The company’s performance exceeded market expectations.

Domestic and overseas growth at the same time, profitability increased: in the first half of the year, the company benefited from the bidding volume of the State Grid energy meter to drive the market to recover, and the company achieved domestic market revenue4.

21 ppm, an increase of 29 in ten years.

86%; overseas, the company continued to expand the development of smart power distribution solutions to achieve revenue in overseas markets9.

53 ppm, an increase of 11 years.

69%, both domestic and overseas have reversed the expected growth rate in 2018 and are back on the growth track.

In terms of profitability, the quality of orders benefiting from revenue recognition in the first half of the year was higher, and the company’s gross profit margin increased by more than 0.

90 up to 42.


The exchange rate has improved and the profits have been increased, and the funds received in advance have remained high: the company’s financial expenses in the first half of the year were -39.13 million yuan, of which the net exchange income was 6.1 million yuan, and the net loss of 1,383 million in the past year has significantly improved.

In addition, the company’s pre-received budget surplus was 1 from the end of the first quarter of 2019.

36 trillion increased to 1.

US $ 7.5 billion, to a certain extent, shows a gradual increase in the volume of businesses in hand.

State Grid Energy Meter Bidding continues to increase, which is expected to promote performance growth: We judge the company’s domestic revenue growth in the first half of the year is related to the rapid growth of the State Grid’s second batch of energy meter bidding auctions in 2018, and the first batch of bidding in 2019 continued this stepPick up the momentum.

We expect that through the last round of smart meters connected to the grid, the rotation period will gradually enter. The bidding of State Grid Energy Meters is expected to continue to increase in volume in the next few years. As one of the leading domestic energy meter companies, the company will continue to benefit.

It is estimated that combined with the company’s interim report, considering that domestic demand for energy meters is expected to enter a period of continuous growth, we will adjust the company’s forecasted earnings for 2019-2021 to zero.



47 yuan (previous forecast was 0.



32 yuan), corresponding to a price-earnings ratio of 13.



1x; increase rating to buy.

The main risks faced by the rating are adverse changes in the exchange rate situation; adverse changes in the overseas market environment; and the domestic electricity meter bidding volume is not up to expectations.