NARI Tech:Strong 1H momentum will sustain;reiterating Buy with raised target price

类别:公司研究 机构:德意志银行 研究员:Michael Tong 日期:2017-08-02

1H results beat; reiterating Buy as sector top pick

    NARI Tech reported stronger-than-expected 1H profit growth (+25%) andshowed encouraging order momentum. As we discussed in A value-accretiveasset injection plan; looking forward to a stronger NARI (19May), we expect itsoverall competitiveness to be greatly enhanced upon parentco asset injection(subject to approvals). NARI is our sector top pick, as we believe its favorableproduct exposure, diversification efforts and competitive R&D capability willlead to a quality earnings growth profile (16% CAGR in 17-19E) with betterdefensiveness and sustainability than peers. On the earnings forecast lift andconsolidation of target asset, we raise TP to Rmb20.2and reiterate Buy.

    Grid automation drives 1H results; strong group-level order momentum

    1H NP was +25% yoy to Rmb350m, primarily driven by strong gross profitgrowth in the power grid automation segment, despite some weakness inothers. Meanwhile, 1H order intake at the group level rose 18% yoy, anencouraging momentum level seen broadly across segments. This could pointto a strong full-year performance for NARI (post-consolidation of target assets).

    Why do we like NARI the best?

    NARI Tech is our favorite sector pick, because 1) it has multiple growth drivers,especially rising secondary grid automation equipment and HVDC-Flexibletransmission investment; 2) its diversification in both products and marketsshould help defend a stable earnings outlook; 3) its unparalleled R&D capabilityshould keep driving new product initiatives, supporting sustainable long-termgrowth; 4) we see upside from post-merger synergies in terms of cost saving,efficiency/R&D enhancement and potential share incentive scheme.

    Lifting TP to Rmb20.2(previously Rmb18.5); key risks

    We raise FY17-19EPS 28-41% on 1H results beat and consolidation of targetassets with share issuance. Our TP is therefore lifted to HKD20.2(HKD18.5),with target P/E lowered to 20x FY18E as the valuation premium from the assetinjection should be removed. Risks: failure/poor execution of asset injection,lower grid investment, and market share/margin volatility on competition.

股票代码 股票名称 最新价(元) 涨跌额(元) 涨跌幅(%) 成交额(万元) 成交量(手)
600406 @nn@ @n@ @c@ @cc@ @v@ @t@

数据推荐

投资评级

更多>>
股票名称最新评级目标价研报
华体科技 买入 -- 研报
剑桥科技 持有 -- 研报
烽火通信 买入 -- 研报
亿联网络 买入 -- 研报
移为通信 持有 -- 研报
红相股份 持有 -- 研报
光环新网 持有 -- 研报
中际旭创 持有 -- 研报
海能达 买入 -- 研报
海格通信 持有 -- 研报
沪电股份 买入 -- 研报

盈利预测

评级选股>>
股票名称11年EPS12年EPS研报
老凤祥 1.16 1.29 研报
周大生 0 0 研报
开润股份 0 0 研报
珀莱雅 0 0 研报
上海家化 0.90 1.22 研报
跨境通 0.96 0.82 研报
银座股份 0.56 0.50 研报
新华百货 1.24 1.33 研报
南极电商 0.74 0 研报
欧亚集团 1.01 1.24 研报
大东方 0.48 0.34 研报

股票关注度

更多>>
股票名称关注度平均评级最新评级
中信证券 34 持有 持有
贵州茅台 32 持有 买入
隆基股份 32 买入 持有
华泰证券 32 持有 持有
伊利股份 31 持有 买入
万科A 30 买入 买入
格力电器 30 持有 买入
五粮液 30 持有 买入
上汽集团 29 持有 买入
通威股份 28 买入 持有
泸州老窖 28 持有 持有
三一重工 27 持有 持有
美的集团 27 持有 中性
中信证券 26 持有 持有
中国国旅 25 持有 持有
华能国际 24 持有 持有
当升科技 24 持有 持有

行业关注度

更多>>
行业名称关注度关注股票数买入评级数
电子信息 586 79 299
汽车制造 510 37 293
建筑建材 432 53 211
金融行业 430 28 192
电子器件 410 55 234
钢铁行业 371 29 166
化工行业 366 61 112
机械行业 319 41 107
生物制药 304 49 143
房地产 282 31 202
家电行业 275 11 132
酿酒行业 258 15 110
煤炭行业 241 23 103
有色金属 230 48 75
服装鞋类 230 18 110
食品行业 201 23 68
酒店旅游 194 20 56