Dahua (002236) 2018 Annual Report Comment: Gross Margin Increase in Fourth Quarter Obviously Continues to Increase

Dahua (002236) 2018 Annual Report Comment: Gross Margin Increase in Fourth Quarter Obviously Continues to Increase

The report guide company released the 2018 annual report on the evening of March 18, achieving operating income of 236.

6.6 billion, an increase of 25 over the same period last year.

58%; net profit attributable to shareholders of listed companies25.

2.9 billion yuan, an increase of 6 over the same period last year.

34%, in line with our expectations.

  Investment Highlights Gross profit margin reached 38 in the fourth quarter.

The year-on-year improvement of 5% is obvious in 2018. Affected by multiple factors such as domestic economic transformation and overseas uncertainty, the industry and company’s revenue growth has improved, and the company’s revenue growth has shown a trend of seasonal changes.

At the same time, in order to continue to expand the market, the company’s selling expenses reached 33.

USD 6.5 billion, an annual increase of 39.

26%, significantly faster than revenue growth.

In terms of R & D, it attracted 22.

8.4 billion, an annual increase of 27.


Therefore, the growth rate of net profit attributable to mothers is only 6.


Looking at the data for the fourth quarter, we observed a gross profit margin of 38.

5%, a significant improvement over the previous two quarters, indicating that the operating environment has improved.

The company gradually promoted the layout, and established R & D sub-centers and supply chain sub-center companies. The overseas market revenue in 2018 reached 85.

7.8 billion, accounting for 36% of total revenue.

25%, an annual increase of 26.

01%, the growth rate is slightly faster than the domestic market, in terms of gross profit margin, the gross profit margin of the overseas market reached 41.

15%, significantly higher than 34 in the domestic market.

89%, and gross margin increased by 0.

68%, the overseas market is an important driving force for the company’s sustained and rapid development.

As one of the important alternatives for accelerating the “acceleration + localization” strategy, the company established a European supply center to provide a re-delivery experience and better customer service for the European market through local assembly and centralized logistics services. It can serve global partnersAnd users to provide better products and services.

  Innovative businesses continue to increase spending and open up new growth space. Based on an in-depth understanding of the diverse needs of customers, the company continues to develop emerging businesses such as machine vision, robotics, smart fire 杭州夜网论坛 protection, video conference systems, and professional drones.

In terms of smart fire protection, we have completed the research and development and practical application of the Dahua HOC smart fire protection overall solution, and realized the smart fire planning and deepening design from the unit to the street, district and county, and then to the entire city.

In terms of professional drones, emergency command, police security, forest fire prevention, power line patrol, environmental monitoring and other fields have been widely implemented, and the interconnection and integration of drone data with platform data of public security, urban management, forestry and other industries has been implemented.At the same time, through intelligent analysis applications, face recognition, license plate recognition, and structured data 佛山桑拿网 extraction have been implemented.

  Profit forecast and forecast The domestic smart city, Xueliang project, smart transportation, smart building and other sub-sectors continue to grow in demand. At the same time, the company actively conducts overseas business layout and establishes a European supply center with high growth prospects.

Continued high investment in research and development has enabled the company to have a strong ability to innovate, lead the development of the industry and open up new growth opportunities.

We estimate the company’s net profit attributable to its parent in 2019-2021: 28.

9.6 billion, 36.

3.5 billion, 44.

2.8 billion, EPS is 0.

97, 1.

21, 1.

48 yuan / share, the net profit attributable to the mother increases by 14 each year.
50%, 25.
51%, 21.


Maintain “Buy” rating.

  Risks Remind Newcomers to Threat; Domestic Macroeconomic Growth Continues; Trade Frictions; Major Shareholders Reduction

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