Keyuan Wisdom (002380) Company Dynamic Comment: Half-year Results Meet Expectations Two Networks Layout Has Initial Results

Keyuan Wisdom (002380) Company Dynamic Comment: Half-year Results Meet Expectations “Two Networks” Layout Has Initial Results
The semi-annual performance continued to maintain rapid growth: According to the company’s semi-annual report, the company’s net profit attributable to shareholders of listed companies in the second quarter of 2019 was 0.54 ppm, a 10-year increase of 17.17%; operating income1.85 ppm, a 12-year increase of 12.61%; net cash flow from operating activities is zero.40 ppm, an increase of 40 in ten years.81%.In the first half of 2019, the company realized zero net profit attributable to shareholders of listed companies.65 ppm, a 20-year increase of 20.12%; operating income 3.08 million yuan, an increase of 21 in ten years.44%; net cash flow from operating activities is zero.25 trillion, an increase of 63 in ten years.58%.The overall performance is in line with our previous expectations.The company’s performance has shown steady growth thanks to the company’s deep digging of the stock market, actively tracking market demand, expanding and strengthening existing businesses, and expanding application areas in the product industry.The amount of non-recurring gains and losses on net profit in the second quarter of 2019 was 646.670,000 yuan, an increase of 884.87%. The contraction in the first quarter was due to government subsidies and short-term financial income.The impact of non-recurring gains and losses on net profit in the first half of 2019 was 712.330,000 yuan, down 21 every year.9%, mainly due to the restructuring of short-term bank financial investment income in the first half of last year. Continue to strengthen research and development, and actively deploy the “two webs” of industry and energy: The company’s business is mainly focused on the industrial Internet platform, and is committed to improving the automation and information technology for customers.The company always adheres to independent innovation and technology introduction, and has mastered many core technologies.The company continues to increase R & D investment to maintain the company’s technological leadership.In the first half of the year, the company’s R & D expenditure totaled 2,779.09 million yuan, accounting for 9% of operating income.02%; as of the first half of 2019, the company has gradually obtained 146 authorized patents and 182 software copyrights.Against the background of the rapid development of the Internet, the company is actively deploying the Industrial Internet and Energy Internet.In June this year, the company took the lead in launching the EmpoworX industrial Internet platform, actively exploring new development models for industrial 成都桑拿网 interconnection, and widely applying it in many fields, leading various industries to achieve smart upgrades.In April of this year, the NT6000 control system KM950 controller independently developed by Keyuan successfully passed Achilles International Certification and received the “Achilles LevelⅡ” certification certificate, marking that the information security capability of Keyyuan NT6000 system reached the international advanced level and also helpedImprove the core competitiveness of Keyuan in the fields of smart industry, smart energy and smart cities.In the future, the company will continue to improve its capabilities in production data interconnection, big data analysis, artificial intelligence and other aspects to provide customers with better analysis and diagnostic services. Optimized internal management, and the number of new contracts signed in the first half of the year continued to increase: Currently, after 25 years of marketing channel construction, the company has an experienced marketing team and has established eight business divisions and major customer centers in China.Give full play to the business unit control, sales and project implementation are highly coordinated, close to customers, while cultivating sales staff, but also accumulated customer relationships.In January this year, the company successfully won the Shandong Lu Yu Bo Chuang Aluminum 50 technical reform project of alumina DCS control system, which replaced the basis for the in-depth cooperation between Keyuan Wisdom and Bosai Group.The company also won the bid for the Shaangu Drum Group’s global operation management center platform project, giving full play to the company’s advantages in intelligent factories, and strengthening in-depth cooperation with Shaangu Drum Group in corporate safety, environmental protection, and efficient operation.The company has signed a strategic cooperation agreement with Shandong Power Construction Third Company. Through a long-term cooperation mechanism, the company has launched all-round and in-depth cooperation in the power market.In May, the company successively won two bids for the photovoltaic power plant of Haixizhou Golmud multi-energy complementary integration optimization demonstration project and Yumen Xinneng’s 50,000 kW tower-type molten salt photothermal SIS / MIS management and control integration project, which realized the company’s power generation in photovoltaicInformatization breakthrough.Keyuan NT6000 intelligent decentralized control system successfully won the bid of Jingneng Group Yuhai 2 × 9F grade improved gas-steam combined cycle combined heat and power unit project, and received full approval from customers.The company is good at good customer resources, excellent technical capabilities, high-quality services, frequent successes in the first half of the year, and the future is expected. Investment suggestion: We predict that the company’s EPS for 2019-2021 will be 0.63 yuan, 0.76 yuan and 0.88 yuan, corresponding to PE is 23 times, 19 times and 17 times.Maintain the “Highly Recommended” rating. Risk reminders: macroeconomic policy risks; market competition risks; brain drain risks.