Inner Mongolia First Machine (600967): Achievement Growth Speed Improves Stable Development of Military and Civilian Products

Inner Mongolia First Machine (600967): Achievement Growth Speed Improves Stable Development of Military and Civilian Products

I. Overview of the event On August 26, the company released its semi-annual report for 2019 and achieved operating income of 53.

1.5 billion, an increase of 4 every year.

57%; net profit attributable to mothers3.

3.4 billion, up from 15 previously.

66%.

Second, the performance of analysis and judgment has been steadily 无锡桑拿网 improved, and the expense ratio during the period dropped in the first half of 2019, and the company achieved operating income of 53.

1.5 billion, an increase of 4 every year.

57%; net profit attributable to mothers3.

3.4 billion, up from 15 previously.

66%.

In the first half of the year, the company’s period expenses were 2.

74%, down by 1 every year.

61pct, initially due to interest income on deposits leading to a decline in financial expenses.

The company’s gross profit margin is 9.

92%, a decrease of 1 from the same period last year.

52 points.

The company’s inventory other than raw materials increased by 50 from the beginning of the period.

08%, indicating that the company had too many orders in the first half of the year, and the prosperity of the special vehicle industry improved.

Military special vehicle leader, Interior + Foreign Trade Security Development Company, as the country’s only equipment production base that integrates main battle tank series and medium-heavy wheeled armored vehicle series, has now formed a combination of wheels and shoes, a combination of vehicles and guns, and a combination of light and heavy.Advanced production layout combining domestic and foreign trade.

In recent years, the company’s foreign trade products VT4 tanks and VN1 wheeled tanks have created new achievements.

According to the newly released White Paper on China ‘s National Defense in the New Era, the proportion of equipment costs in defense military expenditures has increased to 41%, and in the future, efforts will be made to eliminate old and old equipment, and increase the main battle equipment lineup, including the inside of Type 15 tanksLoading speed.

With the gradual elimination of the effects of the military reform, the resumption of military procurement will promote the company’s stable growth in the military sector.

Large-scale coaxial coaxial railway vehicles. Future growth is expected. Railway vehicles include open cars, tankers, flat cars, box cars, hopper cars, special vehicles, etc., covering 60-ton to 100-ton vehicle products.

The report is short-term, and the company totals ten years.

The 01 million railway vehicle orders were delivered to each other within the year.

At present, the company is increasing its foreign trade development efforts and continues to make efforts in markets such as Indonesia, Lithuania and Sweden. We expect that the company’s railway vehicle field will also develop steadily in the form of domestic sales + foreign trade in the future.

Third, investment advice The company is a leader in conventional special vehicles. It must increase the proportion of defense equipment costs and accelerate the installation of main battle equipment. We are optimistic about the 杭州夜生活网 company’s long-term development.

Expected company 2019?
EPS in 20201 will be 0.

35, 0.

39 and 0.

43 yuan, corresponding PE is 32X, 29X and 26X, the average evaluation of comparable companies is 58X, the first coverage, given a “recommended” rating.

4. Risk warnings 1. Military expenditure growth is not up to expectations; 2. Slow development of foreign trade market