Riyue (603218) 2019 Third Quarterly Report Review Report: Third Quarterly Report Performance Continues to Grow Highly, Major Operating Data Improve Overall

Event On October 28, 2019, Riyue shares released the third quarter report of 2019: the company achieved operating income in the first three quarters of 201924.

410,000 yuan, an increase of 47 in ten years.

27%; realized net profit3.

450,000 yuan, an increase of 73 in ten years.


In the third quarter, revenue was 9%.

500,000 yuan, an increase of 42 in ten years.

08%, net profit 1.

30 ppm, an increase of 60 in ten years.


Opinions The increase in the proportion of outsourced processing deliveries has resulted in a gross profit margin that has not increased with revenue. The gross profit margin for the third quarter of 2019 was 24.

96%, compared with 24 in the second quarter.

97% were basically flat.

We predict that in the third quarter, the average price of castings will increase by 250 yuan / ton, and the average cost will increase by 190 yuan / ton, so the gross profit margin will remain stable as a whole.

Since the prices of pig iron and scrap in the third quarter remained basically stable compared with the second quarter, labor and depreciation costs did not change much. Considering the increase in the industry’s finishing delivery demand, we believe that the increase in the proportion of subcontracted finishing delivery led to an increase in both revenue and costs.Gross profit margin remained relatively stable.

Higher-than-expected increase in management expenses and R & D expenses resulted in slightly lower net profit. Expected net profit in the third quarter of 20191.

300,000 yuan, 10 million yuan lower than we expected.

There are two preliminary: 1) management costs increased by 5.32 million yuan than expected, of which about 2.5 million was generated by amortization of the cost of fair share incentives allocated in June; 2) R & D expenses increased by 4.7 million yuan than expected, mainly forFor offshore wind power 8MW and 12MW units, the cost of research and development of castings increased.

Advance receipts and advance payments have increased significantly, optimistic about the certainty of the 19-20 year performance. Advance receipts for the third quarter 杭州桑拿 of 2019 are 53.21 million yuan, an annual increase of 3866.

21%, the customer increased the advance payment in order to lock the supply of castings next year; the advance payment was 2951 million, an annual increase of 171.

51%; inventory 4.

62 ppm, an increase of 32 in ten years.

twenty four%.

The main operating data is comprehensively positive, optimistic about the certainty of the company’s performance in 19-20.

Earnings forecasts and estimates. Considering the substantial improvement in the company’s main operating data, we maintain 2019?
The profit forecast for 2021 predicts that the company’s net profit attributable to the parent in 2019-2021 will be 5 respectively.

310,000 yuan, 7.

7.9 billion, 10.

68 ppm, an increase of 89 in ten years.

38%, 46.

59%, 37.

11%, corresponding to PE19.

66 times, 13.

41 times and 9.

78 times, continue to maintain the BUY rating.

Risk warning: adverse changes in wind power policies; raw material prices continue to increase significantly.