Goldwind Technology (002202): A clear trend in sales volume, tender system affects the company’s short-term performance

Goldwind Technology (002202): A clear trend in sales volume, tender system affects the company’s short-term performance
Highlights of the report The event describes the company’s first quarterly report for 2019 and achieved revenue of 53 in Q1 2019.960,000 yuan, an increase of 39 in ten years.80%; net profit attributable to parent company2.29 ppm, a decrease of 4 per year.64%; EPS in the first quarter was 0.06 yuan. Incident Comment Increasing wind turbine sales and wind farm power generation drive annual revenue growth.In Q1 2019, the company’s revenue increased by 39 in ten years.80%, mainly due to the increase in sales of wind turbines and wind farm power generation: 1) 928 武汉夜生活网 sales of external wind turbines.9MW, an annual increase of about 50%, is expected to contribute revenue of about 30-35 trillion, which is the main revenue increase; 2) the company’s wind farm holding installed capacity4 by the end of 2018.43GW, 3 before the end of 2017.67GW increased by about 21%.Affected by the wind, the company’s own wind farm’s power generation hours in 2019Q1 was 537 hours, which decreased by about 9% each year, affecting the company’s power generation business revenue growth.It is estimated that the company’s power generation business in the first quarter realized revenue of about 1.1 billion US dollars, a small increase in one year; 3) The increase in the scale of water treatment and the steady development of financial leasing business also contributed part of the revenue increase. The gross profit margin of wind turbines continued to decline, and expenses and investment affected profit growth.In terms of profitability, Q1’s comprehensive gross profit margin was 26.62%, a decline of 9 per year.41pct, the decline is expected to be mainly affected by changes in income structure: 2018Q1 wind farm power generation business with a higher gross profit ratio accounted for a higher proportion.From the perspective of the wind turbine business, the tender price of wind turbines continued to decline rapidly from the second half of 2017 to the first half of 2018. Low-price orders in 2019Q1 will gradually enter the delivery period, which will affect the company’s wind turbine business gross profit margin.?out.In terms of profit, the company’s net profit attributable to the parent company decreased by 4%.64%: 1) The company achieved gross profit in Q1 of 201914.37 ppm, at least 13 in 2018Q1.A slight increase of 90 trillion; 2) Increase in management expenses and decrease in investment income affect the company’s profit growth. The sales volume of wind turbines is clear, and the gross profit margin is gradually recovering in the short term under pressure.The recovery trend of the industry is clear. The number of domestic open tenders for domestic fans in 2019Q1 was 14.9GW, a single quarter historical record; the company has external orders at the end of the quarter19.23GW is also a record high; it is the foundation for subsequent fan speeding up to reduce waste.In terms of gross profit margin, the tender price of wind turbines has continued to increase since September 2018. At the same time, the prices of major raw materials such as glass fiber, copper, silicon steel, pig iron, etc. have declined since the fourth quarter of 2018, and then gradually declined.In summary, it is expected that the gross profit margin of the company’s wind turbine business will initially bottom out in the second half of 2019, and drive performance will accelerate. Taken together, it is expected that the company’s EPS in 2019 and 2020 will be 0.87, 1.14 yuan, corresponding to 13, 10 times the PE, continue to recommend. Risk Warning: 1. Industry installations did not meet expectations; 2. Gross margin fell more than expected.