Sinoma International (600970) 2019 Third Quarterly Report Review: The Revenue Side 深圳桑拿网 Continues to Accelerate to Maintain Long-term Performance and Steady Growth Judgment

Revenue growth in the first three quarters of 19.

29%, single quarter revenue accelerated quarter by quarter.

The gross profit margin decreased, the exchange rate increased and the expense ratio decreased, the net decrease in operating cash flow decreased, and the debt ratio decreased.

The company is expected to continue to consolidate its main cement engineering business, rely on localized operations to promote diversified business and operation and maintenance business, and maintain sustainable and stable growth.

Maintain “Buy” rating.

In the first three quarters of 2019, the company’s revenue was +19.

29%, revenue-side acceleration performance steadily increased.

The company achieved operating income of 169 in the first three 杭州龙凤网 quarters of 2019.

0 ‰, +19 a year.

29%; net profit attributable to mother 11.

53 trillion, ten years +14.

07%; corresponding to EPS 0.

66 yuan, +13 for ten years.

79%.

Looking at the quarter, Q1 / Q2 / Q3 revenue growth rate was 12.

0% / 12.

7% / 36.

32%, net profit growth attributable to mothers 32.

0% / 10.

0% / 10.

52%.

We believe that the company’s new long-term single-digit growth rate is gradually increasing and it is gradually converting to revenue, and the dividend yield is expected to be 4 in 2019.

9%, the “cement engineering +” strategy continued to advance, maintaining the judgment of steady growth in 2019 performance.

Gross margin decreased, operating cash flow improved significantly, and debt ratio decreased.

The company’s gross profit margin for the first three quarters of 2019 was 16.

21%, double -2.

19pcts, we believe that the proportion of domestic projects with relatively higher gross profit margins in the third quarter led the increase.

Expense rate dropped by 0.

7 points to 6.

9%, of which sales / management / finance / R & D expense ratios are 1.

65% / 4.

2% /-1.

4% / 2.

4%, respectively -0.

03pct / -1.

1 piece / +0.

3pct / + 0.

One copy, the company’s three quarterly reports of net cash flow from operating activities.79 trillion, a net decrease of 21 over the same period last year.

The improvement of 3 mega inches was mainly due to the fact that some projects paid subcontractors in a concentrated manner in the same period last year, and the project entered the stage of repayment this year.

Asset interest rate fell 2.

22.

In the first three quarters, the new expressway grew at a single rate of + 27%, and operation and maintenance continued to develop.

In the first three quarters of the company, the new year was 225.

2.5 billion, previously + 27%, of which 174 were newly signed for engineering construction, equipment manufacturing, environmental protection, and production operation management.

600 million / 34.

100 million / 11.

600 million / 3.

1 ‰, +35% / + 8% /-19% / 405% each year, the main business of the project increased rapidly, and the operation and maintenance business was strong.

New domestic business 76.

40,000 yuan, + 61% per year, newly signed 148 for overseas business.

9 trillion a year + 15%.

The outstanding contract value at the end of the third quarter was 440 million, which is a two-way income for 2018, and future income protection is better.

Risk factors: exchange rate risk; geopolitical risk; project advancement is less than expected risk.

Investment recommendation: Revenue growth rate for the first three quarters of 19.

29%, single quarter revenue accelerated quarter by quarter.

The gross profit margin decreased, the exchange rate increased and the expense ratio decreased, the net decrease in operating cash flow decreased, and the debt ratio decreased.

The company is expected to continue to consolidate its main cement engineering business, rely on localized operations to promote diversified business and operation and maintenance business, and maintain sustainable and stable growth.

We maintain the company’s 2019/20/21 EPS forecast of 0.

89/1.

01/1.

14 yuan, maintain “Buy” rating.