Inner Mongolia First Machine (600967): The rapid growth of Q1 2019 results continues to be optimistic about the long-term development of armored leaders

Inner Mongolia First Machine (600967): The rapid growth of Q1 2019 results continues to be optimistic about the long-term development of armored leaders

Event: The company announced its 2018 annual report and achieved operating income of 深圳桑拿网 122 in 2018.

6.7 billion, an annual increase of 2.

5%, to achieve net profit attributable to mother 5.

34 ppm, an increase of ten years.

67%, corresponding to the expected return (decrease) of 0.

32 yuan, 0 dividends for every 10 shares distributed to all shareholders.

32 yuan (including tax).

The company announced the first quarter of 2019, and achieved operating income in the first quarter of 201916.

7.4 billion, an increase of 9 per year.

03%, realizing net profit attributable to mother 1.

37 ppm, a 126-year increase.

96%, corresponding gain (reduction) 0.

081 yuan.

Opinion: The company’s performance in 2018 increased slightly, and the first quarter of 2019 achieved high-speed growth.

(1) The company’s performance in 2018 increased slightly, and its operating income increased by 2 杭州桑拿 year-on-year.

5%, mainly because the company has made new breakthroughs in multi-arms service market expansion on the basis of upgrading the army. Exports of VT4 tanks and VN1 wheeled combat vehicles have made new achievements, and civilian products and military-civilian integration products have achieved double growth.

(2) Growth of the company’s attributable net profit in 20181.

67%, its growth rate is less than the growth rate of revenue, mainly due to: ① product structure changes, etc., leading to a decrease in the company’s overall gross profit margin1.

39 units; ② The report caused the company to increase research investment and increase R & D expenses by 0.

2.4 billion.

(3) The ending balance of the company’s 2018 annual report inventory increased by 26 compared with last year.

86%, mainly due to the increase in the company’s products and inventory products.

(4) The company’s operating income for the first quarter of 2019 increased by 9.

03%, mainly due to the expansion of sales scale, net profit attributable to mother realized 126.

The rapid growth rate of 96% is much higher than the growth rate of operating income. The main reasons are as follows: ① Structural deposits achieved index reorganization during the reporting period, resulting in a decrease in financial expenses by 0 compared with the same period of the previous year.

5.7 billion; ② bad debts of accounts receivable were reversed, resulting in a decrease in asset impairment losses of 0 compared with the same period of the previous year.

12 ppm; ③ Overdue wealth management income increased, resulting in an increase in investment income of 0 compared to the same period last year.

1.7 billion.

(5) The order status of the company is good, as reflected in the balance sheet at the end of 2018, and the advance funds received at the end of the Q1 report period in 2019 increased by 79 compared with the same period of the previous year.

58%, 33.


Considering the relatively high maturity of armored vehicle technology, the company’s performance is expected to maintain steady growth.

Leading companies in army armored vehicle equipment are expected to continue to benefit from the upgrade of armament equipment and the growth of the military trade market.

The company is affiliated to the China Weapons Industry Group. It is the only equipment development and production base in the country that integrates main battle tanks and wheeled vehicles. It has an absolute monopoly in the field of domestic armored vehicle equipment.

The company is the sole production base of the most advanced land combat equipment 99A main battle tanks and 8 * 8 wheeled combat vehicles. The military products cover the three series of track, wheeled and artillery.

During the 13th Five-Year Plan period, the Army has entered two strategic development periods, namely, make-up remodeling and troop transformation. Relevant Army transformation plans are continuing to promote the acceleration of army mechanization and informatization. The new equipment such as Type 15 tanks has a large space for installationThe advanced finalization of the fourth-generation tank is expected to accelerate, and the company’s continued production as the main production base for previously armored vehicles has benefited from the Army’s modernization.

At the same time, the company actively develops the military trade business. At present, the main foreign trade products include VT4, VT5 and VN1, and it has a high cost performance and enjoys market competitiveness of ownership in the international military trade market.

In 2017, the company achieved batch orders in Thailand and made breakthrough progress in the military trade market.According to SIPRI statistics, China ‘s overall incremental military trade export growth has steadily ranked fifth in the world. Global military trade growth and the “Belt and Road” policy have brought development potential for the company’s military trade business.

Demand in the rail freight industry is picking up, and the civilian products business is expected to develop for a long time.

The company’s subsidiary, Beifang Chuangye, is one of the 14 railway wagon and vehicle manufacturers approved by the former Ministry of Railways, and its production volume and capacity occupy the leading position in the industry.

Benefiting from the rise in commodity prices, the reform of the Railway Corporation’s system, the national “transit-to-rail” policy and the “Belt and Road” national railway construction, the domestic railway freight industry demand has gradually picked up.

In July 2018, China Railway issued the “2018-2020 Freight Increment Action Plan”, which proposes that the national railway freight volume will reach 47 by 2020.

The target of 900 million tons.

According to, China Railway plans to purchase trucks 21 in the next three years.

60,000 locomotives and 3756 locomotives, with an estimated purchase value of more than 100 billion U.S. dollars. As the main freight vehicle supplier of the China Railway Administration, the company is expected to develop for a long time.

The Group’s only overall military platform is expected to be replaced by a mixed-reform benchmarking enterprise.

The company is the only military product overall listing platform of the China Weapons Group. At present, the Group’s armored vehicle assets still include Ha Yiji, Jianglu Mechanical and Electrical, Chongqing Tiema, etc., which are not listed.

By the end of 2017, the asset securitization and reorganization of China Weaponry Group Group was 26% (in terms of total assets), and the target group ‘s asset securitization rate reached 50% during the 13th Five-Year Plan period. There is still room for improvement.As the group’s capital operation platform, it is expected to continue to further promote the reform of mixed ownership and maintain the benchmarking of mixed-reform enterprises.

At the same time, through the gradual implementation of the reform of the military pricing mechanism, the company, as a manufacturer of armored vehicles, gradually improved its performance.

Earnings forecast and rating: We are optimistic about the long-term development of the company’s military and civilian products business, and consider the company to continue to benefit from the army’s modernization and mid-to-long-term railway network planning. We give the company a “strong recommendation” rating.Profit forecasts are 0.



54 yuan, corresponding to 2019/20/21 PE is 29/24/20 times.

Risk reminder: New product listing fails to meet expectations; military enterprise ownership reform fails to meet expectations