Finet Shenzhen News.
Shanghai Electric down 3.49%, to 3.60 Hong Kong dollars, after results released lower; the company's first half revenue fell 2.9% to 27.798 billion yuan (RMB, same below), net profit fell 11.46% to 1.547 billion yuan and earnings per share 0.11 dollars.
SW release results after the maintenance of its buy rating and target price to 4.5 Hong Kong dollars, equivalent to 17.0 times FY09 and 13.6 times the 10-year forecast earnings,glue stick optimistic about its prospects for the gradual improvement in orders, future gross margin improvement and Shanghai Electric strict cost control, the next four years is expected to net profit of the company's compound growth rate of 22.9%, to 2009 and forecast 2010 net profit increased by 2% and 5% to 3.13 billion yuan and 3.895 billion yuan.
SW reported that, excluding the first half of 2008 caused 2.212 billion yuan diesel engine business income, estimated in 2009 is actually the first half of the income of Shanghai Electric rose 5.2%, better than market expectations.glue gun Revenue from power generation equipment increased by 10.4% to 17.453 billion yuan. Heavy equipment business grew from 25.3% to 2.286 billion yuan.
Report that, 1H09 gross margin was a record low of 15.0%, estimated power generation equipment business gross margin declined from 19.5% in 1H08 4 percentage points to about 15% of 1H09. This is mainly due to 1H08 due to higher prices of raw materials procurement. Since the second half of 08 raw materials prices, the gross margin is expected to Shanghai Electric began the second half from 2009 to gradually improve, is expected to Shanghai Electric in 2009 full year gross margin was 17.0%.
Report that, while gross margin fell to historic lows in the 1H09, but the Shanghai Electric successfully reduced the rate of cost of sales and administrative expenses rate. That this is cost control and Shanghai Electric joint result of economies of scale. Shanghai Electric 1H09 net profit down 11.4% year on year to 13.0 billion, we think slightly better than market expectations. 09 new power generation equipment orders during the first half of 330 billion yuan, total orders for 170 billion yuan in hand. With the Chinese economy and the recovery of demand for electricity, power generation equipment, new orders are expected in the future will gradually turn for the better. Siemens, Shanghai Electric is also the first obtained from the thermal power of the sub-contract. ...