Industrial Fulian (601138): Achieved Steady Growth in Performance 5G + Industrial Internet Continues to Empower

Industrial Fulian (601138): Achieved Steady Growth in Performance 5G + Industrial Internet Continues to Empower

Industrial Fulian (601138): Achieved Steady Growth in Performance 5G + Industrial Internet 深圳丝袜会所 Continues to Empower

The 3Q19 results were in line with expectations for the 1st to 3rd quarter results of Industrial Wealth: Revenue of 2,799.

0 million yuan, a slight retrogression in ten years.

4%; net profit attributable to mother 101.

800 million, an annual increase of 4.


Among them, the third quarter revenue was 1,093.

9 trillion, an increase of 21% from the previous month and a decrease of 12 in ten years.

4%, mainly due to product structure adjustment of cloud service business.

Net profit attributable to mother 47.

100 million, an increase of 9 in ten years.

1%, an increase of 81% month-on-month, and steady growth in profits, in line with market expectations.

We maintain our profit forecast and outperform the industry rating and 20.

With a target price of RMB 00, we believe that the company is the core target of the Industrial Internet and has the potential to benefit in the long term under the promotion of 5G.

Development Trend The Industrial Internet is gradually showing improvement in operating efficiency.

According to the reported amount, the management fee and sales cost of Industrial Fulian achieved a double reduction, of which sales cost decreased by 18.

5%, administrative expenses decreased by 22.

88%, operating efficiency has improved significantly.

Looking at the third quarter alone, the company’s gross profit margin also increased from the same period last year.

15% rose to 0.

25ppt to 8.

4%, the expense ratio decreased by 0 compared with the same period last year.

4ppt, reflecting the industrial Internet’s internal quality improvement and efficiency, cost reduction and savings have been very productive.

Continue to allocate funds for research and development in 5G-related fields and the Industrial Internet.

The company has continued to invest in research and development, and reported investment in research and development expenses65.

93 ppm, a ten-year increase of 8.


Improve research and development speed in industrial artificial intelligence, industrial big data, 5G-related fields and precision manufacturing. The products cover intelligent servers, core computing of edge computing and fog computing, industrial cloud systems, Internet of Things, and 4G / 5G next-generation network technologies.

We believe that the company’s technology reserves are expected to become the core standpoint for future empowerment as it matures into 5G technology.

Actively and steadily promote existing businesses and transform the Industrial Internet.

Li Junqi, chairman of Industrial Fulian, said that the company will make full use of the production technology advantages accumulated over the past decades, information accumulation, and rely on the distributed layout to continue external empowerment, including professional empowerment, data 杭州桑拿网 empowerment, knowledge empowerment and talentEmpowerment, leading the transformation and upgrading of manufacturing.

Earnings Forecast and Estimate We maintain EPS forecast for 2019/2020 of 0.

89 yuan and 0.

96 yuan unchanged.

The current contradiction corresponds to 17 of 2019/2020.

2 times / 15.

9 times price-earnings ratio.

Maintain Outperform rating and 20.

A target price of 00 yuan corresponds to 22.5x 2019 P / E and 20.

8 times 2020 price-earnings ratio, 30 than the previous inclusion.

3% upside.

Risk The lifting of the ban on the strategic placing of shares on December 9 may affect short-term extensions.

5G and cloud computing fell short of expectations, and consumer electronics continued to weaken.