Yingqu Technology (002925): Engraving machine business drives positive profit growth

Yingqu Technology (002925): Engraving machine business drives positive profit growth
Event: Yingqu Technology released its semi-annual report for 2019.300,000 yuan, an annual increase of 24.71%, net profit attributable to mothers4.1.7 billion, a five-year growth of 5.08%, showing positive growth over the years. The engraving machine business will continue to drive the company’s performance to grow.In the first half of 2019, Yingqu Technology achieved further revenue growth24.71%, realizing net profit return to mothers increased by 5.08%, a 10-year positive growth, 都市夜网 with a gross profit margin of 38.22%, a decrease of 4 over the same period last year.91 averages, the downward trend slowed.Among them, innovative consumer electronics products achieved revenue in the first half of 201910.7.4 billion, an increase of 21 over last year.65%, basically the engraving machine and the corresponding pattern icon ironing machine achieved a substantial increase.In addition, the company has also achieved corresponding technological breakthroughs and improved manufacturing capabilities in the field of related consumables, which has also led to overall sales growth of household engraving machines.At present, the home engraving machine in the UK and the United States is still in the stage of increasing penetration rate. In the future, the market capacity of home engraving machines and related consumables will increase. The company is expected to change in the long term, and the related business will maintain long-term high growth. The FDA has verified that the e-cigarette business is expected to usher in a transformation.With the Q2FDA’s approval of IQOS’s PMTA application in 2019, the product is successfully listed on the US market, and it is expected that it will gradually bring performance growth to the company in the second half of 2019.Also, IQOS3.The possible heavy volume in the second half of the corresponding updated version will also bring incremental orders for the company. The advancement of the company’s e-cigarette business will reverse in the second half of 2019 and re-growth will be realized. Maintain “Highly Recommended” rating: We expect the company to achieve revenue of 35 in 2019-2021.62/45.00/56.5.7 billion, net profit 9.64/12.01/14.780,000 yuan, corresponding to 2 EPS.10/2.62/3.22 yuan, maintain “strongly recommended” level. Catalysts: IQOS’s rapid sales growth in the United States; in-depth cooperation with PMI to develop new electronic cigarettes; expansion of other major customers. Risk warning: the growth rate of engraving machines, the growth of the electronic cigarette business is not up to expectations; IQOS’s US listing is blocked, etc.