Halma Technology (002595) Interim Report Review： Interim Report Growth Accelerates Accelerated Profit Level Under Pressure
Halma Technology (002595) Interim Report Review: Interim Report Growth Accelerates Accelerated Profit Level Under Pressure
Event: On August 27, Halma Technology released its semi-annual report for 2019: the company’s semi-annual revenue for 201919.6.9 billion yuan, an increase of 14 over the same period last year.17%, net profit attributable to shareholders of the parent company.7.5 billion, an increase over the same period last year.34%. The company achieved operating income in the first half of 201919.69 ppm, an increase of 14 per year.At 17%, large parts and foundry products experienced high growth.In terms of products, mold revenue was 13.8.4 billion, accounting for 70.29%, an annual increase of 5.25%; income from large components 2.1.8 billion, accounting for 11.05%, an increase of 41 per year.99%; income from casting products 3.09 million yuan, accounting for 15.71%, an annual increase of 39.50%; machinery products and other income 58.12 million yuan, accounting for 2%.95%, an annual increase of 67.20%.By region, the company’s domestic sales revenue9.5.1 billion, accounting for 48.28%, an increase of 20 per year.26%; export revenue 10.1.9 billion, accounting for 51.72%, an annual increase of 9.02%.Looking at the quarterly 武汉夜网论坛 results, Q2’s performance has increased. In addition to the changes in demand, it is also affected by the low Q1 and high Q2 bases in 2018. The company’s 2019H1 consolidated gross profit margin is 31.96%, a decrease from the same period last year.39 points.In terms of different products, the gross profit margin of the mold business was 35.28%, a decline of 3 per year.00pct; gross profit margin of other products such as casting products and large parts processing is 22.86%, an increase of 5 per year.09%.By quarter, the company’s Q1 / Q2 gross profit margins were 28.39% / 35.69%, respectively -2.26pct / + 0.33pct, Q2 improved interest rates. Actively deploy overseas mold production capacity to help increase the company’s market share.At present, the company’s overseas customers account for more than 60%, and they are located all over the world. They have strong expectations and requirements for the company’s nearest factory. The nearby factory can provide customers with more convenient and faster repair and mold repair.The company has successively set up subsidiaries in the United States, Thailand, Southeast Asia, India and other places. In the early stage, it mainly focused on the service and maintenance of tire molds. At the same time, the subsidiaries cooperated with the parent company to receive orders, which would play a role in promoting the company’s overall efficiency.The operation of the subsidiary has basically entered the right track. The follow-up company will promote the construction of the subsidiary according to market conditions and further strengthen the production and service capabilities of the subsidiary.According to the report of China Rubber Net, the company’s tire construction in Thailand, Southeast Asia, India and other places have been approved one after another, helping the company to accelerate the increase of overseas cities’ share. Earnings forecast and rating: The company is a leader in the tire and abrasive industry, focusing on mid- to high-end products and continuously increasing its global market share.We adjust our profit forecast and expect the company’s EPS for the years 19-21 to be 1.05/1.20/1.37 yuan, corresponding to the closing price of PE on August 27 is 20x / 18x / 16x, maintaining the “prudent increase” rating. Risk reminders: macro policy risks, rising raw material prices, and risks of changes in nominal exchange rates.