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State Securities maintain Zhongche era strong buy rating.-truffe

State Securities: maintain Zhongche era strong buy recommendation on hot column capital flows thousands of thousands of stocks the latest Rating Rating diagnosis simulated trading client sina finance App: Live on-line blogger to tutor Sina Hong Kong APP: real time market exclusive reference stocks also worth the investment? What’s the problem? Where is the future of the way out? Sina launched the "Hong Kong Hong Kong stocks as well as unattractive" discussion, with a rational and constructive attitude, welcome attention to Hong Kong stocks, concern of the capital market, Hong Kong stocks together for suggestions, seek the Hong Kong stock market tomorrow. Please to hkstock_biz@sina. The gross margin decline, the performance is slightly lower than expected, thanks to rapid growth in the EMU and urban rail product revenue, the company in the first half recorded revenues of 6 billion 533 million yuan, an increase of 14.2%; the product delivery and sales structure changes, the first half of the gross interest rate of 37.9% (two quarter gross margin was only 36%, 1.6) percentage points year-on-year decline; in addition, development costs increase, foreign exchange losses, inventory and accounts receivable should be provision for impairment caused by the company’s net profit attributable to shareholders of record of 1 billion 286 million yuan, representing an increase of 5.5%; during the period, earnings per share of 1.09 yuan. Changes in the structure of the sale, so gross margin pressure: the first half of the locomotive EMU Rail business grew by -12.6% 19.3%, respectively, recorded an income of $2 billion 880 million to $1 billion 170 million $39.3%. Gross profit margin decline is mainly due to changes in the income structure (with a higher gross margin accounted for the decline in the proportion of locomotive business). We believe that the gross profit margin due to changes in product delivery time and revenue structure is a normal phenomenon. In recent years, efforts to take measures to reduce the efficiency of the company, to achieve the scale effect, to improve the level of gross margin. Gross profit margin is expected to improve in the second half. The new business is progressing smoothly, the diversification effect: IGBT business smoothly, currently more than 1700V products will be put into use, not limited to the application field of rail transportation, but also penetrate into the field of power grid, it’s going well. IGBT is the starting point of the company’s business breakthrough, with its carrier, into the power generation, smart grid, industrial transmission, electric vehicles and other fields, is the company’s business diversification, an important attempt to systematize. Maintain a highly recommended rating to maintain the target price of HK $55.2: the company’s first half results slightly lower than market expectations, mainly due to changes in income structure, product delivery time and cost considerations and other factors. We believe that with the gradual emergence of scale effect, the optimization of revenue structure, the second half of the gross profit margin is expected to improve. After the interim results of the company, the stock price adjustment, we think it is a good time to buy. Expect 2016-2018 EPS were 2.81 yuan, 3.12 yuan and 3.61 yuan, to maintain the target price of HK $55.2 unchanged, the equivalent of 16.7 times 2016 PE, the price is 37.7% increase in space, maintain strongly recommended rating. Valuation theory相关的主题文章: