Sino-Singapore (002912): High inventory and high advance receipt ensure high certainty of performance

Sino-Singapore (002912): High inventory and high advance receipt ensure high certainty of performance

Sino-Singapore (002912): High inventory and high advance receipt ensure high certainty of performance

The 2018 and Q1 2019 results are in line with expectations. China Sintech released its 2018 annual report and 2019 Q1 report.

Revenue in 2018 6.

91 ppm, + 39% per year, attributable net profit2.

05 megabytes, a year + 55%, the performance is basically in line with expectations, and a dividend of 6 per 10 shares is paid.

5 yuan.

Revenue for the first quarter of 2019 was zero.

97 ‰, previously + 8%, attributable net profit -0.

06 million yuan, turned losses into losses, performance in line with our expectations.

Development Trend The first question investors may pay attention to: Does the fluctuation in the first quarter of 19th affect the logic of high certainty of performance?

The company’s investment highlights are the high certainty of short-term performance and the upgrade of long-term business models. We believe that the change in 1Q19 will not affect the certainty of the company’s 19-year performance, which can be proved by the 杭州夜生活网 following two points: ① 1Q19 company inventory 2.

410,000 yuan, which is basically the same as FY17. The production volume of FY18 front-end broadband network / mobile network products is 3,287 / 1,143 units / block, which is -36% / -35% compared with FY17.Equipment usually needs to be stocked in advance. The high inventory and production volume indicates that the company may expect to have additional orders in the future; ② advance receipts in 1Q195.

510,000 yuan, 2 before fiscal 2017.

The huge increase of 56 trillion indicates that the payment status of customers is good, and the company has a relatively large amount of unconfirmed orders in hand.

Earnings forecast We maintain our earnings forecast unchanged.

Estimates and recommendations The company currently can sustain 37 / 27x P / E for 19/20.

Dating 无锡夜网论坛 in 2020, it is estimated that the target price will be raised by 9% to 118, corresponding to PEG ≈ 1 in 2020, which still has 17% upside compared with the current one.

Maintain recommended level.

The volume of fixed-line business orders of venture companies are contiguous, and the execution of orders is less than expected, which may have an impact on performance; systematic estimation errors.