19 year interim report of the hottest Dayuan pump

Dayuan pump's 19 year interim report: the industrial canned motor pump grew rapidly, and the impact of changing coal to gas decreased

Dayuan pump released its 19 year interim report, and the company achieved an operating revenue of 508 million yuan in the first half of the year, a year-on-year decrease of 6.45%; The net profit attributable to shareholders of listed companies was 74 million yuan, a year-on-year decrease of -14.94%; Net profit attributable to non operating profit and loss was 70 million yuan, a year-on-year decrease of -16.39%. The performance was in line with expectations, and the net profit fell

Dayuan pump released the 19 year interim report. The stain free company achieved an operating revenue of 508 million yuan in the first half of the year, a year-on-year decrease of 6.45%; The net profit attributable to shareholders of listed companies was 74 million yuan, a year-on-year decrease of -14.94%; Net profit attributable to non operating profit and loss was 70 million yuan, a year-on-year decrease of -16.39%. The performance is in line with expectations. The decline in net profit is mainly due to the high base of the subsidiary Hefei Xinhu in the first half of 2018. At present, the business related to coal to gas has accounted for a very small proportion of the company's overall revenue. It is expected that the company's overall revenue and profit will increase steadily throughout the year. It is the first time to cover it, so it is given prudent recommendations

revenue decreased by 6.45% year-on-year, which is due to the decline of Xinhu. The revenue of the company in the first half of 19 years was 508 million yuan, a year-on-year decrease of 6.45%. The decrease in revenue was mainly due to the decline in the receivable profits of the subsidiary Hefei Xinhu compared with the same period in 18 years. The revenue of Hefei Xinhu in the first half of 18 years was 286 million yuan, while the first half of 19 years was only 225 million yuan. The net profit of Xinhu in the first half of 18 years was 55.9 million yuan, while the first half of 19 years was only 39.27 million yuan. The business income of Dayuan's parent company, such as agricultural pumps, increased steadily in the first half of the year. Under extremely high point contact pressure, the proportion of coal to gas is further reduced. From 2017 to the first half of 2018, driven by the coal to gas policy, the sales of hot water circulating canned motor pumps in Hefei Xinhu increased significantly. In 18 years, the sales of hot water circulating canned motor pumps exceeded 3.2 million, including 1.8 million in the first half of the year and 1.4 million in the second half of the year, most of which came from the demand for coal to gas. However, the demand related to coal to gas has decreased significantly in 19 years. It is estimated that the relevant revenue of Xinhu coal to gas shielded pump in the first half of the year is only 50million yuan, accounting for 10% of the total revenue. The impact of coal to gas on the company's performance is becoming smaller and smaller

the gross profit margin is basically the same as that in 2018 and is expected to increase in the second half of the year. In the first half of the year, the company's overall gross profit margin was 30.2%. Jinan experimental machine factory organized an employee table tennis match on Sunday, which was basically the same as 30.7% in the whole year of 18 years, with a certain decline compared with 17 years. The decline in gross profit margin was mainly due to the decline in the demand and output of hot water circulating canned motor pumps, resulting in an increase in the allocation of fixed costs. With the bottoming out of the demand for coal to gas and the decline in the price of raw materials such as steel, it is expected that the gross profit margin of the company will increase to a certain extent in the second half of the year

breakthrough of industrial canned motor pump. In 2018, the company's industrial canned motor pump entered the procurement list of large central enterprises such as PetroChina and Sinopec for the first time, and its sales revenue increased significantly, laying a solid foundation for the establishment of the company's brand. In the first half of the year, even if this large category of products had been extended or expanded to the bottom corner or the head continued to break through before breaking, the operating revenue was 53.12 million yuan, an increase of 74.4% year-on-year. At the same time, the company also strengthened its technology and product reserves in some frontier markets. In the first half of the year, it established an industrial chain partnership with Shanghai Jiehe technology, a subsidiary of SAIC Group (24.750, -0.19, -0.76%), Hefei Xinhu is engaged in the development of liquid cooling pump for hydrogen power assembly (currently in the stage of product verification)

the parent company's agricultural pump business is expected to improve and increase its market share. In the second half of 2018 and the first quarter of 19, in addition to the decline in gross profit margin caused by the decline in the demand for coal to gas, the profit margin of the parent company's agricultural pump business also fell significantly. Since the second quarter, the company has made comprehensive changes in woodworking production, operation, sales and other aspects, hiring executives from well-known household appliance enterprises to improve production management efficiency. The annual market space of agricultural pumps exceeds 50billion yuan. At present, the market share of the company is less than 1%. In the future, with the improvement of management and sales, it is expected to further increase the market share

performance prediction and investment suggestions. We predict that with the improvement of agricultural pump business and the breakthrough of industrial canned motor pump customers, the year-on-year sales growth rate of Dayuan pump industry in the second half of the year will be significantly improved compared with that in the first half of the year. It is expected that the annual revenue will be 1.18 billion yuan and the net profit will be 182 million yuan, corresponding to 13.8 times of the PE valuation in 19 years. The company's cash flow and other financial indicators are healthy. Roe has been at a high level for the first time, and it is cautiously recommended