Mind Control (603508) Quarterly Comment: High Equity Incentive Expenses, New Product Volumes Continue to Wait

Mind Control (603508) Quarterly Comment: High Equity Incentive Expenses, New Product Volumes Continue to Wait

Event: The company announced the third quarter of 2019, and the company achieved operating income in the first three quarters of 20197.

32 ppm, an increase of 84 in ten years.

65%; realized net profit of 7.

60 ppm, an increase of 431 in ten years.

61%; realized net profit attributable to mother 7.

$ 45 billion.

71%.

Single quarter analysis, the company achieved operating income in the third quarter of 20191.

67 ppm, an increase of 49 in ten years.

12%; net profit attributable to mother is 0.

21 trillion, down 41 a year.

85%.

In the third quarter, the volume of new LKJ products was limited, and the combined distribution and incentive costs were high.

The performance in the first three quarters of 2019 increased rapidly, and the net profit attributable to mothers continued to decline in the third quarter.

The company achieved operating income in the first three quarters of 20197.

32 ppm, an increase of 84 in ten years.

65%; realized net profit of 7.

60 ppm, an increase of 431 in ten years.

61%.

First, the first is to report the reasons for the collaboration with Lanxin Technology and report that the combined Lanxin Technology achieved operating income2.

USD 8.5 billion, with no budget for the same period last year; Second, report that the operating income of the original principal business of the consolidated company’s headquarters increased by 15 in the same period last year.

06%.

The company achieved operating income in the third quarter.

67 ppm, an increase of 49 in ten years.

12%; net profit attributable to mother is 0.

21 trillion, down 41 a year.

85%.

The essence of the decrease in profits is the increase in the cost of equity incentives, while at the same time increasing the margin of product gross margin reduction in the third quarter.

The company’s sales expense 杭州龙凤夜网 ratio, management expense ratio and R & D expense ratio in the third quarter were 7, respectively.

13%, 29.

89% and 25.

2%, an increase of 2 each year.

25, 16.

29 and 2.

56 averages, the cost rate increased significantly to 58 during the period.

78%, an increase of 18 per year.

The 27 units were mainly affected by the increase of the company’s equity incentive expenses, which dragged down the company’s third quarter performance.

2019 is the first year of LKJ15 promotion, and the number of new LKJ products will gradually climb in the future.At present, some road bureaus across the country have successively tendered LKJ15 systems, but the number is limited.

We compare the pace of LKJ2000 promotion. New products are relatively slow in the early stages of promotion. With the arrival of the replacement cycle of 北京夜网 existing equipment, the volume of new products will gradually climb, and it will contribute incremental performance in the future, and continue to be optimistic about the company’s performance growth.

Earnings forecast and investment rating: Thinking control is a warped domestic control system. The acquisition of Lanxin Technology forms a synergistic effect, and the progressive promotion of the LKJ15 system is superimposed, with good performance.

Taking into account the high level of fair incentive fees in 2019 and the pace of new product promotion has not accelerated, we expect the company’s net profit attributable to mothers to be 8-20 in 2019-2021.

01/3.

96/5.

180,000 yuan, given a “growth” rating.

Risk reminders: the pace of new product promotion exceeds expectations; serious investment in railway fixed assets deviates; systemic risks.