Kaizhong (603037) 2019 Interim Review Report: Performance is slightly lower than expected
Core views: 1) The company’s performance was slightly lower than expected, and revenue growth slowed down as the industry declined.
Affected by the negative growth of domestic passenger car market output (-15.
8%) impact, H1 companies in 2019 to achieve operating income2.
60 ppm, a reduction of 10 per year.
6%; the company’s net profit is 60.34 million yuan, a decrease of 24 per year.
2) The company’s gross profit margin and net profit margin declined.
The development trend of the automobile industry and the intensified market competition have replaced the pressure of price reduction on auto parts companies.
During the period, the company’s comprehensive gross profit margin and net profit margin were 40.
85% and 23.
31%, a decrease of 4 respectively.
34 and 4.
3) The company’s market development effect is remarkable.
In the first half of the year, the company’s shock-absorbing component business won multiple projects of mainstream models such as Audi (Germany), FAW-Volkswagen, SAIC-Volkswagen, Changan Ford; the 杭州夜网论坛 pedal business won most of the new models of SAIC Passenger Cars and Geely, and the company received newThe project value is about 1.
650,000 yuan, the new product realized operating income of 27.98 million yuan that year, laying the foundation for the company’s future business growth.
4) The company’s products have a high market share of new energy vehicles and will expand the scope of applications in the future.
The company ‘s sales of damping components and lightweight pedal assemblies accounted for approximately 46 in the new energy passenger car market.
5% and 15%; the company’s shock absorber components in new energy electric vehicles can be extended to new applications such as motor mounts, battery base mounts, etc., to continue to provide new growth points for the company’s business.
5) Profit forecast and investment rating.
The company’s earnings for 2019/2020/2021 are forecast to be 1.
25 yuan, the corresponding price-earnings ratio is 17 respectively.
The company estimates that it is reasonable and has continued to grow for a long time. However, considering the downward pressure of the macro economy and the adjustment of the market and industrial structure, the investment rating is downgraded to “overweight”.
6) Risk warning.
Passenger car production and sales exceeded expectations for the time being; new business expansion failed to meet expectations.