Xingyu Co., Ltd. (601799): Steady growth in contradiction and steady growth

Xingyu Co., Ltd. (601799): Steady growth in contradiction and steady growth

Core points: 1.

Investment event On March 27, 2019, the company disclosed its 2018 annual report.

At the core of the report, the company achieved operating income of 50.

7.4 billion, an annual increase of 32.

23%; net profit attributable to parent company 6.

1 billion, an increase of 29 in ten years.

91%; net profit attributable to parent company after deduction is 5.

4.4 billion, an increase of 33 in ten years.

49%.

  2.

Our analysis and judgment (1) The company’s revenue rose against the market and its performance was in line with expectations. Against the backdrop of a 4% decline in the growth of domestic automobile sales in 2018, the company’s total revenue increased by more than 19.

24%, reaching 50.

7.4 billion, net profit attributable to mothers is increasing by 32 per year.

23%; net profit attributable to parent company 6.

100,000 yuan, an increase of 29 in ten years.

91%; net profit attributable to parent company after deduction is 5.

44 trillion US dollars, an annual increase of 33.

49%; revenue in the fourth quarter was 13.

500 million, an annual increase of 8.

2%, and profits increase by 17% each year.

Overall, the company’s annual report is in line with expectations.

  (2) The quality of the annual report is high, the gross profit margin, and the ROE level has risen to 2018, and the company’s gross profit margin for the lamp business is 23.

6%, increasing by 0 every year.

75 units.

With the first three quarterly indicators, Q4 gross margin increased to 25.

86%, reflecting the initial decisive effect on the level of profit after the continuous volume of LED products.

The company continues to optimize the efficiency of operation and management, with three rates of 9.

02%, 0 per year.

88 units.

The level of ROE of the report is 25%, 14% after the replacement of wealth management, and it is increased by 2 in one year.

3 units.

Operating cash flow has increased by 23% each year, and the company’s 2018 annual report is of high quality.

  (3) Technology penetration reduces costs, and the advantages of earlier gas headlights that entered LED supply chains of Japanese OEMs are obvious. It is an inevitable trend to replace single gas headlights.

Increasing penetration will continuously improve the company’s product structure, and improvements in its scale will reduce costs and increase gross profit margins.

Since the second half of 2018, the company has entered the supply chain of Japanese car companies, and has obtained a number of headlamp projects for vehicles. It has entered the supply systems of OEMs such as GAC Toyota, Dongfeng Honda, and FAW Mazda.

The production capacity in Foshan and other places will be released in the second and fourth quarters of 2019, and the company will continue to expand the market size and continue to increase revenue.

  3.

Investment suggestion As the absolute leader of domestic listed companies in the automotive lamp industry, the company’s performance is expected to 北京桑拿洗浴保健 grow steadily, optimistic about its ability to control three expenses, high R & D investment, and stabilize the downstream market.It is estimated that the net profit attributable to mothers will be 8 in 19-21.

100 million / 10.

600 million / 13.

70,000 yuan, an annual increase of 32% / 31% / 30%, corresponding to PE of 20.

2/15.

4/11.

9 times, raised to “recommended” level.

  4.

Risk warnings (1) The overall growth rate of the automotive industry is not up to expectations; (2) The project expansion progress is not up to expectations.

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