Qixingxingchen (002439): Cash Flow and Gross Margin Improve Income Indicators

Qixingxingchen (002439): Cash Flow and Gross Margin Improve Income Indicators

Performance is in line with expectations.

The company released the 2019 first quarter report, and Q1 achieved revenue3.

470,000 yuan, an increase of 18 in ten years.


Net profit attributable to mothers was -40.51 million yuan, a decrease of -348.


Deduct non-net profit of -48.89 million yuan, an annual increase of 23.


Gross profit margin increased and cash flow improved significantly.

1) In terms of cost, gross profit margin increased by 6 compared with the same period last year.

52 points.

2) In terms of expenses, the expense ratio during the period decreased by 2 compared with the same period last year.

84pct, mainly because the sales expense ratio decreased by 2 compared with the same period last year.

23pct, while the management expense ratio is basically flat.

3) In terms of cash flow, net operating cash flow increased by 63 compared with the first quarter of last year.

47%, achieved a marked improvement, and the situation of receivables has improved.

After deducting the significance of the non-net profit growth forecast indicators, there is a rebound indicator on the income side.

1) In terms of profit, in Q1 2018, due to the independent listing of the participating company Hengan Jiaxing, adjustments in accounting methods brought about a net investment income of 85.35 million yuan, which constituted non-recurring gains and losses.

Therefore, this year’s Q1 deduction of non-net profit growth rate is relatively reference significance.

2) In terms of revenue, due to the impact of downstream special industries, in Q1 2018?
The revenue growth of Q4 was 2 longer.

04%, 11.

14%, 15.

57%, 10.


In contrast, the income side accelerated in the first quarter of this year, and there was an expectation of recovery.

Investment suggestion: The company will gradually promote strategic emerging businesses such as security operations, 杭州桑拿网 industrial Internet, and cloud security, in order to achieve the upgrading of business models and achieve staged benefits.

Expected 2019?
In 2020, the EPS will be 0.

81 yuan, 1.

02 yuan.

Maintain “Buy-A” rating and 6-month target price of 32 yuan.

Risk Warning: The implementation of cybersecurity policies is less than expected; industry competition is intensifying