Inspur Information (000977) 2019 Interim Report Review: Gross Margin Continues to Rise, Profit Growth Exceeds Expectations

Inspur Information (000977) 2019 Interim Report Review: Gross Margin Continues to Rise, Profit Growth Exceeds Expectations

Event: The company released the semi-annual report for 2019: the first half of the year realized revenue of 21.5 billion US dollars, an increase of 12 year by year.

46%; realized net profit attributable to shareholders of the listed company was 2.

730,000 yuan, an increase of 39 in ten years.

47%, performance growth exceeded 杭州夜网论坛 expectations.

  Gross profit margin continued to rebound: revenue grew steadily in the first half of the year12.

46% to 215 ppm.

In the first half of the year, the high gross profit AI server grew rapidly, causing the company’s overall gross profit margin to rise to 0.

26 averages to 11.

82%, gross profit margin continued the rebound trend of 18 years.

  Equity incentive expenses and increase market development increase the company’s expense ratio: during the first half of the year, company expenses, sales expenses, management expenses, research and development expenses, and financial expenses increased by 30 compared with the previous year.

48%, 49.

21%, 34.

02%, 39.

32% and -52.

38%; The company ‘s rapid increase in sales expenses was mainly due to the company’s increased market development speed. The increase in management expenses was mainly due to the increase in the payment of equity incentive expenses in the first half of the year. The decrease in financial expenses was mainly due to the lack of interest at the end of the company.The same period last year markedly decreased, and interest expenses decreased significantly.

  Profit elasticity brought by asset impairment loss and budget reduction, investment reduction and investment income increase: Company asset impairment loss in the first half of the year.

230,000 yuan, estimated to decrease by 2 in the same period last year.

At 28 ppm, the decrease in asset impairment was mainly due to the loss of inventory depreciation in the same period last year.

Affected by the economic environment at home and abroad, the accounts receivable in the first half of the year is accrued1.

3.7 billion bad debt losses.

Influenced by the investment income generated by the transferee’s sale of financial assets during the holding period, the investment income in the first half of the year increased by 78.4 million yuan.

In the first half of the year, income tax expenses decreased by RMB 40 million, which was mainly due to the difference in profit and loss of parent and subsidiary companies and differences in taxation.

Under the combined effects of the above expenses and income, the company’s profit in the first half of the year increased by 39.

47%, performance growth exceeded expectations.

  The cash flow improved significantly, and the interest-bearing unfavorable proportion decreased: The company’s net cash flow from operating activities in the current period was US $ 2.9 billion, which was significantly improved from US $ -7 billion in the same period last year; meanwhile, the company’s interest-resistance ratio was 64 from 18H1.

70% dropped to 22 in 19H1.

09%, the debt structure was further optimized.

Reasons for improvement: 1.

JDM mode improves delivery efficiency; 2.

With the continuous increase of the company’s share, the company’s industry chain’s right to speak has continued to increase, customer sales repayments have improved significantly, and the supplier’s account period has also been extended.

  Investment suggestion: Maintain the company’s net profit forecast for 19-21 is 8 respectively.

59, 12.

09 and 15.

11 trillion bits, maintaining the “overweight” rating.

  Risk reminder: Expansion of high-end servers is less than expected; server competition is too fierce, leading to a decline in gross profit margin; the overall market growth rate declines.