Baolong Technology (603197) Third 杭州龙凤夜网 Quarterly Report Review: The Parent Company’s Expense Ratio Decreases and the Gross Margin Turning Point Appears

Event: On October 30, 2019, Baolong Technology released the third quarter report of 2019, and achieved total operating revenue of 23 in the third quarter of 2019.

600,000 yuan, an increase of 40 in ten years.

05%, net profit attributable to mother 1.

21 ppm, a decrease of 1 per year.

64%, net profit after deduction to mother 1.

0.6 billion, down by 0 every year.

37%.

The company’s operating income reached 8 in the third quarter.

40 ppm, an increase of 53 in ten years.

37%, net profit attributable to mother is 6437.

110,000 yuan, an annual increase of 72.

86%.

Key points of the report: Overseas mergers and acquisitions increase performance growth, solid management control of the four fee 都市夜网 levels of the company’s 2019Q3 four rate23.

85%, an increase of 4 over the same period last year.

31 points, and after canceling the cost of the company’s overseas merger and acquisition of assets, the parent company’s four fees replaced 19.

47%, a decrease of 0 compared with the same period last year.

08pct; of which the sales expense ratio is not excluded and the impact of merger and acquisition is 8 respectively.

32% and 8.

20%, an increase of 0 over the same period last year.

89 points and 0.

77pct; management expense ratio is not excluded and the impact of merger and acquisition is 6 respectively.

09% and 4.

97%, an increase of 0 over the same period last year.

93pct and drop 0.

20pct; R & D expense ratio is not excluded and the impact of merger and acquisition is 7 respectively.

89% and 6.

30%, an increase of 1 over the same period last year.

55% and down 0.

16%, after excluding the impact of mergers and acquisitions, the management expenses remained the same as last year; the financial expense ratio increased by 1 compared with the same period last year.

06% reached 1.

55%, mainly due to a total of 1,120 interest expenses and income incurred during the period.

240,000 yuan, merged 1062 financing costs paid for the acquisition of DILL at the end of last year.

770,000 yuan.

Looking at the company’s expense ratio during the third quarter as a whole was 22.

08%, an increase of 0 compared with the same period last year.

96 points; selling expenses 7.

69%, 0 compared with the same period last year.

22pct; the management expense ratio is 0 compared with the same period last year.60pct reaches 5.

47%; except for the R & D expense ratio compared with the same period last year.

01pct reaches 7.

96%; financial expense ratio increased by 1 over the same period last year.

79 points reached 0.

96%.

The decline in the parent company’s expense ratio in Q3 2019 also clearly reflects the company’s ability to control the period’s expense ratio.

The gross profit margin increased, expecting a turning point in the performance. The company’s gross profit margin in the third quarter was 32.

1%, an increase of 11.

46%; the company ‘s gross profit margin has continued to increase since the beginning of the year, and the gross profit margin in Q3 2019 increased to 30.

9%, an increase of 0 from the previous period.

7pct; we think the company’s performance is expected to improve in the fourth quarter: 1) the second half of the year may benefit from the start of heavy winter tires in Europe, 2) the after-sales performance of North American companies is good, 3) Q4 with the inflection point of the auto market, driving domestic TPMSrise.
Investment advice and profit forecast We expect the company’s net profit in 2019-2021 to be about 1.

51, 2.

16, 2.

77 ppm, corresponding to PE 25x, 17x, 14x; maintain “Buy” grade.

Risks suggest that the automotive market continues to weaken, and overseas business growth is less than expected.

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