CV Source (002841): Weak education demand drags down revenue costs and increases earnings

CV Source (002841): Weak education demand drags down revenue costs and increases earnings
Investment Highlights Event: CRT recently released the 2019 third quarter report, and the company achieved revenue of 130 in the first three quarters.01 ‰, 8 per year.32%, achieving net profit attributable to mother 14.140,000 yuan, an increase of 66 in ten years.32%, deducting non-net profit 13.430,000 yuan, an increase of 63 in ten years.77%, in line with expectations.  The weak education market weighed on the company’s third quarter revenue performance.The company’s single quarter revenue was 57 in 3Q19.97 ppm, an increase of 0 in ten years.2%, lower than expected, mainly dragged down by weak demand in the education market.Data from China Educational Equipment Network show that in the third quarter, the number of tenders for educational informatization equipment was about 2,000, at regular intervals.8%, the demand for education in the third quarter is not strong.  The increase in profitability brought by the continuous downward cost is the main reason for the increase in profit growth.In the third quarter of 19, the company realized net profit attributable to mothers8.49 trillion, a big increase of 82 in ten years.8%, net profit after deducting 8.08 million yuan, an increase of 78 in ten years.  4%, single quarter profit is close to 8.800 million.The good profit performance was mainly due to the continuous improvement in gross profit margin brought by the downward cost.Benefiting from the continuous decline in the cost of panels and other raw materials, the company’s gross profit margin reached 30 in the third quarter.3%, an increase of 8 per year.1 unit, an increase of 1 unit from the previous month, setting a new record for the company.Benefiting from this, the company’s operating profit margin and net profit margin reached record highs, reaching 16 respectively.5% and 14.7%.  Initial profit growth guidance is 45% -70%.The company expects its return to profit for the ten years to be 14 in 2019.56-17.07,000 yuan, an annual increase of 45% -70%.Fourth quarter profit is expected to be at zero.43-2.9.4 billion, the previous growth rate was -72.4% to 90.Between 3%.  New giants in the electronics industry maintain “Buy” rating.Since 2011, the company’s profitability and growth ability have ranked in the electronics industry TOP7 / 232, 北京夜网 ROE and ROIC have remained above 30%, and the annual growth rate of revenue and profits has remained basically above 30%.We expect the company’s net profit to be 16 in 2019-2021.60, 23.75 and 31.01 billion, corresponding to PE of 38.14x, 26.66x and 20.42x, maintain “Buy” rating.  Risk warning events: Education market demand is less than expected; meeting development exceeds expectations; market competition intensifies risks