Zhongxin Sec (002912) Interim Review: High growth of advance receipts accrues investment impairment provisions affecting net profit

Zhongxin Sec (002912) Interim Review: High growth of advance receipts accrues investment impairment provisions affecting net profit

Core point of view: The company released its 19-year interim report: 19H1 total operating income3.

30,000 yuan, an annual increase of 26.

1%; net profit attributable to mother 6634.

10,000 yuan, an increase of 6 in ten years.

8%; net profit after deduction to non-mother 6411.

20,000 yuan, an increase of 12 in ten years.


By business: 1) Broadband network product operating income 2.

3 ‰, an increase of 75 per year.

6%, gross margin is 87.

5%, increase by 1 every year.


The high revenue growth was mainly due to the 4 winning bids at the end of 17.

800 million orders confirmed part of the revenue.

The increase in gross profit margin was mainly due to the increase in high-density boards with higher gross profit from the previous year.

2) Operating revenue of mobile network products 6504.

30,000 yuan, down 35 each year.

1%, gross margin is 65.

5%, down 8 per year.


One of the reasons for the decline in gross profit margin was the decline in the proportion of sales of mobile products with higher gross profit margins, and at the same time the overall gross profit margin of mobile network products has also improved (because 5G applications have not yet formed, the 4G application market is saturated and competition has intensified).

The company’s well-known R & D expenses and R & D expenses are 1.

0 million yuan (all research and development expenditures are expensed), 北京夜网 an increase of 36 per year.

1%, R & D expenses 30.

4%, an increase of 2 per year.


Accounts received in advance 5.

71 ppm, an increase of 70 in ten years.

3%, an increase of 2 from the previous month.


The company has ample orders in hand, which guarantees a certain amount of income in the second half of the year.

Asset impairment loss was 1817.

10,000 yuan, an annual increase of 140.

6%, of which, because the stock company Maike Network intends to terminate the listing, due to the principle of prudence, provision for investment impairment provision of 6.92 million yuan.

Estimated 19-21 results are 2 respectively.

62, 3.


82 yuan / share is expected to have an EPS of 2 in 19 years.62 yuan / share, corresponding to 43 times PE.

Comparable companies (Star Star, Meyer & Poco) have an average PE of 19 times in 19 years.

The company is the largest company in the field of government traffic collection and has higher business barriers to government customers.

It can give the company a PE estimate of 48 times in 2019, with a reasonable value of 125.

76 yuan / share, the previous “Buy” rating.

Risks suggest that intensified competition has intensified the continuous growth of gross profit margin; the impact of fiscal expenditures on the uncertainty of income and receivables.