Huayu Automobile (600741): Long-term growth trend of Q1 performance growth is determined

Huayu Automobile (600741): Long-term 淡水桑拿网 growth trend of Q1 performance growth is determined

Event: The company released Q1 2019 financial report, and Q1 achieved revenue of 355.

7 ‰, the ten-year average of 11.

6%; net profit attributable to mother 18.

5 ‰, 36 years ago.

6%; net profit after deduction of non-return to mother 13.

6 ‰, 15 years ago.

1%.

Q1 industry sales fluctuated, the company’s revenue and performance increased Q1 passenger car industry sales fluctuations.

7%, the company’s largest customer SAIC Group sales increased by 15.

9%, which caused the company’s Q1 revenue and performance to decline.

In addition, in the first quarter of last year, after the company acquired Shanghai Xiaoyao (now Huayu Vision), the company’s original 50% stake in Shanghai Xiaoyao was a one-time premium of 9.

US $ 200 million was confirmed as the current period’s investment income caused a high base of performance for the same period. Therefore, the Q1 company’s return to its parent’s net profit range changed, and the non-adjusted performance range was in line with expectations.

Initially, the sales volume of the industry may grow annually or month by month, and the quarterly recovery is expected. The company’s performance is also expected to improve quarterly.

The gross profit margin increased and the expense ratio caused by high R & D investment increased. The gross profit margin of the company in Q1 was 14.

3%, increase by 1 every year.

2pct, which is an increase of 0 from the previous month.

At 6 points, the company’s profitability is gradually improving.

Period fee for Q1 is 10.

3%, an increase of 1 per year.

6pct, mainly due to the company’s continued high investment in research and development.

The selling expense ratio is 1.

4%, unchanged; management + R & D expense ratio 8.

9%, an increase of 1 each year.

5 points.

The frontier layout of the “new four modernizations” helps the stable growth of business performance. The company ‘s business segments operate steadily and are facing the future frontier layout of the “new four modernizations”: 1) After the integration of Huayu vision, the automotive intelligent lighting business has entered a new level.The domestic market share of Vision’s domestic lamp market is about 30%. The leader must be difficult to shake, and it is deeply tied to the vehicle leader SAIC Group, which has obvious competitive advantages.

2) In line with the new energy vehicle trend, the joint venture will hold Huayu Magna Electric Drive System Co., Ltd. to improve the electric drive system, drive motors, electronic steering gear, electric air-conditioning compressors and other new energy core parts and components industry chain.obvious.
3) In the field of intelligent driving, the intelligent driving active induction system (ADAS) 24GHZ backward millimeter wave radar product has been mass-produced, and the development of 77 GHZ radar products is progressing smoothly.

The company actively grasps the development trend of “electrification, networking, intelligence, and sharing” in the automotive industry. It is cutting-edge in the field of high-tech parts and components, building a strong moat, and helping its performance continue to grow steadily.

Earnings forecast and investment recommendations The company’s EPS for 2019-2021 is expected to be 2.

32/2.

49/2.

61 yuan, the corresponding PE is 10 respectively.

2/9.

5/9.

0 times.

Maintain the company’s “Buy” rating.

Risk Warning: The automotive industry is weaker than expected; the company’s product and customer expansion are worse than expected.

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