China Inspection Group (603060): Q4 Revenue Accelerates Continuous Inflow of Operating Cash Flow

China Inspection Group (603060): Q4 Revenue Accelerates Continuous Inflow of Operating Cash Flow

Investment Highlights China Inspection Group released its 2018 annual report: the company achieved revenue9.

37 ppm, an increase of 24 per year.

57%; net profit attributable to mothers1.

910,000 yuan, an increase of 32 in ten years.

54%, of which Q4 earned 3.

11 million yuan, an increase of 37.

07%.

At the same time, the company announced the 2018 成都桑拿網profit distribution plan: 10 bonus shares and 3 bonus shares and cash dividends2.

65 yuan (including tax), 1 for every 10 shares.

The company’s revenue: quarterly, Q1, Q2, Q3 and Q4 increased by 12 compared with the same period last year.

14%, 18.

52%, 25.

68%, 37.

07%; by product, inspection services, certification services, extended services, product sales and security services increased by 25.

55%, 16.

38%, 13.

65%, 41.

74% and 24.

32%.

On the profit side, the company achieved a comprehensive gross profit margin of 45 in 2018.

66%, a decrease of 0 from last year.

37 points, mainly due to the lower gross profit margin of inspection services with a higher income.

Among them, inspection services, certification services, extended services, product sales and production safety technical services gross margins decreased by 1 respectively.

37pct, -0.

77 points, -4.

99pct, -5.

96 points and 5.

87 points.

The company achieved a net profit margin of 22 in 2018.

11%, an increase of 1 over the previous year.

48pct, mainly due to the decrease in the expense ratio during the period and other income, the increase in the net investment income and the increase in non-operating income.

Expenses of the company during 201823.

95%, a decrease of 0 compared with the same period last year.

80pct, mainly from the decline in management expense ratio and research and development expense ratio.

The company’s asset impairment loss accounted for 0%.

92%, an increase of 0 from last year.

43 points.

The company’s one-year net operating cash flow in 20181.12 yuan, an increase of 0 from last year.

41 yuan.

Earnings forecast and rating: Without considering the impact of the company’s future profit distribution plan on the company’s equity, we expect the company’s EPS for 2019-2021 to be 1.

07 yuan, 1.

27 yuan, 1.

52 yuan,上海夜網論壇 the PE corresponding to the closing price on March 28 is 25 times, 20.

9 times, 17.

6 times, maintaining the level of “prudent overweight”.

Risk Warning: Downside risks of the macro economy, less-than-expected business development outside the province, less-than-expected M & A integration, risk of cancellation of industry qualifications, risk of corporate credibility