by winston » Mon Nov 11, 2019 2:11 pm
not vested
AAC TECH(2018)
Analysis:
AAC announced its results for the first three quarters of 2019.
In the third quarter of 2019, the Group`s business structure continued to improve, and overall revenues improved significantly compared to the previous two quarters.
Revenue in the third quarter reached RMB 5 billion, an increase of 31% from the previous quarter and an increase of 3% from the same period last year.
Gross profit margin was 29.6% in the third quarter, up 4.6 percentage points quarter-on-quarter and down 7.5 percentage points year-on-year;
Net profit was RMB 700 million, net profit margin was 13.9 %, up 5 percentage points quarter-on-quarter! and down 6.1 percentage points year-on-year.
Due to the continuous improvement in revenue in the second and third quarters of 2019, the negative impact of the first quarter was substantially offset.
The Group`s total revenue for the first three quarters was RMB 12.58 billion, a slight decrease of 5% year-on-year.
Gross profit margin was 28.4%, down 8.5 percentage points year-on-year;
Net profit was RMB 1.47 billion, down 47% year-on-year.
The Group`s financial condition remained stable, with operating cash inflows of RMB 2.7 billion in the first nine months of 2019.
After deducting the main capital expenditure of RMB 2 billion, as of September 30, 2019, the Group`s book cash was RMB 2.9 billion and the net gearing ratio remained at a healthy level of 10.5%.
Strategy:
Buy-in Price: $51.00, Target Price: $57.50, Cut Loss Price: $45.80
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"