Zhongzhi shares (600038): Q3 results continue to grow rapidly and there is a lot of demand for new samples

Zhongzhi shares (600038): Q3 results continue to grow rapidly and there is a lot of demand for new samples

Event: The company recently released the third quarter report of 2019, and the company achieved revenue of 105 from January to September 2019.

2.9 billion (+28.

63%); net profit attributable to mothers4.

50,000 yuan (+32.


In Q3 2019, the company achieved revenue of 36.

2.8 billion (+28.

39%); net profit attributable to mothers1.

6.3 billion (+27.


Core point of view Q3’s revenue performance continued to grow at a high rate, and gross profit margin declined slightly.

In the first three quarters of 19, the company achieved revenue of 105.

2.9 billion (+28.

63%), achieving net profit attributable to mothers4.

50,000 yuan (+32.

12%), taking into account the additional factors delivered by the main engine factory and the impact of high-temperature holiday in the third quarter, although the growth rate of the third quarter report is slightly higher than the intermediate report, it still maintains a high level.

The growth rate of the profit side is slightly higher than that of the revenue side, mainly due to the management expense ratio (5.

41%) ranked 18 over the same period (6.


The company’s gross profit margin in the first three quarters was 11.

29% in the same period last year.

44%, a decrease of 1.

The 15 units may be related to the increase in the proportion of revenue from newly delivered products and has not yet been priced.

The increase in cash from operating activities and the significant increase in inventories indicate that production tasks are heavy.

During the reporting period, the company purchased goods and received cash payments for labor services77.

74 trillion, an estimated 58 in the same period last year.

410,000 yuan, an increase of 33.


At the same time, the company’s inventory was 156 at the end of the reporting period.

74 million, an increase of 15 from the previous quarter.

42%, which is the highest quarter-on-quarter growth rate since the company’s restructuring at the end of 2013, and also the first two-digit growth in the past ten quarters. The marginal change is obvious, indicating that the company’s production tasks are expanding.

The National Day Parade -20 was officially unveiled, and there is a lot of room for future demand.

There is a large demand for medium-sized general-purpose helicopters, and the number of US-Russian replacement medium-sized general-purpose helicopters accounts for more than half of all types of helicopters.

Located on the national plateau, the total mountain area is close to 60% of the country’s land area. The good maneuverability and general performance typical of medium-sized general vehicles is an important guarantee for the Army’s military to achieve its combat capability in the entire region.

The Zhi-20 is the first medium-sized general-purpose helicopter developed completely independently. After years of development and test flight, it debuted on the 夜来香体验网 National Day parade, indicating that the troops have been formally installed. Through the increase of batch production and delivery, it is expected to continue to increase the company’s performance.

Financial Forecast and Investment Suggestions To take into account the high-growth continuation in the third quarter, we adjust the company’s earnings for 2019-2021 to 1.

09, 1.

35, 1.64 yuan (previously was 1.)

04, 1.

29, 1.

58 yuan), with a 49-fold estimate for 2019 given by comparable companies, corresponding to a target price of 53

41 yuan, maintaining the “overweight” level.

Risk prompts less than expected delivery of military products