China Power (600482) Annual Report Comments: Consolidated and Thickened Results Optimistic about the Company’s Power Business Market Space

Shaanxi Power, Heavy Gear Company consolidated the company’s performance.

The company released its 2018 annual report on April 18 and achieved operating income of 296.

62 trillion (decade +7.

81%), realizing net profit attributable to mother 13.

48 ppm (ten years +15.

33%).

According to the report average, Shaanxi Power, Heavy Gear Co., Ltd. achieved consolidation and increased company performance.

The military product business remained stable, and the professional integration of the power business saw an increase in the scale of the report. The company received new orders 291.

6.5 billion, with 346 orders at the end of the period.

7.7 billion.

The company’s military products achieved revenue of 47.

5.4 billion, an increase in stability, is an important support for the company’s performance.

The company deeply promoted the integration of the low-speed diesel engine power and chemical power industry sectors, and initial results were achieved. According to the number of new diesel engine orders received by China Ship Diesel, the power and contract value increased by 42 compared with 2017.

9%, 100.

8% and 96.

9%; Chemical Power has achieved specialization and large-scale operations, with revenue growing by 34 each year.

32%.

Benefiting from the improvement in management efficiency, financial costs have decreased and period costs have decreased year by year9.

89% benefited from the professional integration of the power business. The 北京夜网 company’s sales expenses and management expenses decreased by 8 respectively.

69%, 1.

12%; financial expenses benefit from interest income, exchange loss gains increase, each decrease of 108%; the company’s expansion of research and development, research and development costs increased by 17%.

Benefiting from the improvement of management efficiency, the financial expenses decreased, and the company’s period expenses decreased year by year9.

89%.

Focus on the positive impact of the company’s professional integration of power business and the strategic restructuring of the marine industry on the company. According to the annual report, the company will subsequently integrate the high-speed diesel engine business and power-drive business to gradually improve the company’s operating efficiency.

In January and March 2019, Xiao Yaqing, the director of the SASAC, stated 深圳桑拿网 twice, “Intensify structural adjustment, and actively and steadily carry out strategic reorganization in the areas of equipment manufacturing, shipbuilding, and chemical engineering.” The company is the power business of CSSCPlatform, focusing on the positive impact of the strategic restructuring of the shipbuilding industry on the company.

Profit forecast and investment advice The company’s military products are stable, and the military-civilian fusion product market is competing. We will not consider additional issuance for the time being. It is estimated that the company’s net profit attributable to its mothers in 19-21 will be 15 respectively.

54/18.

42/20.

90 trillion, corresponding to 30/25/22 times the current sustainable PE.

The company’s average expected center in the past was 35xPE. Considering that the prosperity of the warship industry will continue to increase in 19-20 years, the company’s military business will fully benefit, the company’s professional integration of its power business will improve operating efficiency, and the strategic restructuring of the ship sector is expected to have a positive impact on the company, Can give the company a 19-year 35xPE estimate, corresponding to a reasonable value of 31.

85 yuan / share, maintain “Buy” rating.

Risk reminder: The growth rate of future military expenditures may exceed expectations leading to a reduction in equipment procurement costs; the uncertainty of research and development and procurement of warships may affect the performance of supporting enterprises.