Weichai Power (000338) 2019 Third Quarterly Report Review: Industry boom continues to grow steadily
Attributable net profit of 70.
600 million, +17.
6% of the company achieved revenue of 1,267 in the first three quarters.
08 thousand yuan (+7.
21%), and achieved a net profit of 70.
580,000 yuan (+17.
61%), in line with expectations.
In the third quarter alone, the company achieved revenue of 358.
4.6 billion (-0.
20%), achieving net profit attributable to mother 17.
710,000 yuan (+10.
The profit level was steadily and steadily improved, and the gross profit margin in the first three quarters was 22.
06%, rising by 0 every year.
42pct, profitability improved slightly.
Expenses cost 13.
07%, a slight increase of 0 a year.
15pct, of which selling expenses cost 6.
27%, a decline of 0 per year.
40 points; management expenses 6.
69%, increasing by 0 every year.
52pct, due to increase in research and development costs; financial expenses 0.
11%, an increase of 0 every year.
03pct, the increase in structured deposits, interest income is included in the impact of investment income.
The prosperity continued, and the market share steadily increased the industry scale. In September 2019, heavy truck sales reached 8.
30,000 vehicles, an increase of 13% from the previous month and an annual increase of 6.
Cumulative sales in the heavy truck market from January to September were 88.
80,000 vehicles, a slight decrease of 1% in the same period, the decline is further reduced. Against the background of stricter regulations, the prosperity of the heavy truck industry is expected to continue.
At the company level, Sinotruk has become the second-tier company of Shandong Heavy Industry, marking the completion of Shandong Heavy Industry’s asset restructuring of Sinotruk.
Weichai and Sinotruk carried out in-depth cooperation within the Shandong Heavy Industry system.
Deploying fuel cells and strengthening the leading position of heavy truck power systems The company has successively invested in fuel cell companies such as Fuse and Ballard, and reached strategic cooperation with Bosch, Sirius Power, Geely and other companies.
At present, the company and Zhongtong Bus have built 3 hydrogen fuel cell bus operation lines in Weifang, put in 30 hydrogen fuel cell buses for trial operation, and have a sustainable operating mileage of 500,000 kilometers. At the same time, a one-day bus has been built in Weifang.Fixed hydrogenation station with a hydrogenation capacity of 1000kg.
The company actively promotes the completion of the fuel cell power layout and strengthens its leadership position in heavy truck power systems.
Leading heavy truck industry, steady growth, overweight rating and underestimation of outstanding blue chips, industry prosperity continues, diversified layout of storage logistics and fuel cell and other areas, strong and strong alliances to build world-class heavy truck enterprises, the 无锡桑拿网 company’s performance achieved steady growth.
We maintain 19/20/21 EPS as 1.
45 yuan, the corresponding PE is 9 respectively.
3x, maintaining the overweight level.
Risk warning: heavy truck sales continue to grow significantly