Shanghai Mechanical & Electrical (600835) Quarterly Report Review 2019: Q1 Profitability Increases QoQ or Builds Intelligent Manufacturing Platform

Shanghai Mechanical & Electrical (600835) Quarterly Report Review 2019: Q1 Profitability Increases QoQ or Builds Intelligent Manufacturing Platform

The profitability of the first quarter increased month-on-month, or to build an intelligent manufacturing platform, and continued to recommend ratings.
In the first quarter, the company’s gross profit margin stabilized on a month-on-month basis, and the net interest rate rose on a month-on-month basis. The parent company’s book cash of approximately US $ 5 billion provided the foundation for the future of intelligent manufacturing platforms.

It is expected that the company’s net profit attributable to its parent will be 14 from 2019-2021.

01 (-2.

64), 15.

83 (-2.

65) and 18.

50,000 yuan, maintaining the “recommended” level.

Q1 net interest rate increased by 0.

In the nine quarters, Q2 gross profit margin is expected to increase Q1’s company revenue in 201942.

67 ppm, an increase of 7 per year.

16%, net profit attributable to mother 2.

19 ppm, a decrease of 1 per year.

93%, mainly due to the Q1 receivables accrued 30.07 million yuan in credit losses, compared with 10.86 million yuan in the same period in 2018.

The company’s overall gross profit margin in Q1 2019 was 17.

08%, down 3 a year ago.

28 units, but only down 0 from the previous month.

1 average value. Since the second quarter of 2018, the decline in the gross profit margin in a single quarter has eased and stabilized. We expect the company’s gross profit margin to increase sequentially in the second quarter of 2019.

Expense rate during the company’s 2019Q1 period 8.

22%, down by 1 every year.

79 averages, a decrease of 0 from 2018.

During the 28 years, the expense ratio during the period tended to decline; the company’s net interest rate in the first quarter of 2019 was 8.

41%, a quarter-on-quarter increase of 0.

9 units.

The carrying cash of the parent company has reached 49.

200 million, which is the cornerstone of building a smart manufacturing platform. In 2014-2018, Shanghai Electromechanical obtained an investment income of more than 1 billion in cash, and 2018 was 11.

At the end of 2018, the carrying cash of the parent company increased by 5 compared with 2017.

6.4 billion.

We analyze that the increase in the parent company’s carrying cash is mainly to obtain cash dividends from subsidiaries such as Shanghai Mitsubishi.

At the end of 2019Q1, the carrying cash of the parent company was 49.

20,000 yuan, we expect to exceed 5.5 billion yuan by the end of 2019.

As the parent company has no operating assets, its continued increase in book cash may be the cornerstone of the company’s rapid industrial 南京夜网 development, seeking new growth points and actively building a smart equipment manufacturing platform.

Elevator business is a cash cow, and it will continue, or it will push smart manufacturing forward.
Since 2018, Shanghai Electric has focused on the development of smart energy and smart manufacturing businesses, and promoted the development of Shanghai Electric by combining endogenous growth and outbound investment.

The company is the most important asset of Shanghai Electric’s industrial equipment sector, and an important platform for Shanghai Electric to develop into the field of intelligent manufacturing.

From 2016 to 2018, the company’s achievements in smart manufacturing with precision gear reducers exceeded expectations, and its book cash has reached 49.

200 million US dollars, and the cash cow property of the 苏州桑拿网 elevator business continues, or it will push the company to take a leap forward in the field of intelligent manufacturing.

Risk warning: the risk of prolonged real estate development cycle, the risk of rising raw material prices