Xingyu shares (601799): third quarter results resume high growth

Xingyu shares (601799): third quarter results resume high growth

Event: The company released the third quarter report of 2019, and the company achieved operating income of 41 in the first three quarters.

05 trillion, an increase of 10 in ten years.

22%; operating profit 6.

16 ppm, an increase of 19 in ten years.

52%, net profit attributable to the parent company5.

31 ppm, an increase of 20 in ten years.

96%; equivalent EPS is 1.

92 yuan / share.

Opinion: Q3 net profit resumes high growth every year.

The company achieved revenue in the third quarter 13.

980,000 yuan, an increase of 8 from the second quarter.

96%, the annual growth rate reached 9.

73%, revenue resumed growth.

In terms of net profit, the company achieved net profit attributable to its mother in the third quarter.

920,000 yuan, an increase of 37 in ten years.

92%, profit level resumed high growth after the increase in the second quarter.

In the first three quarters, domestic passenger car production and sales dropped by 13 respectively.

1% and 11.

7 %%, even though the narrower-than-expected margin in the third quarter narrowed to 7% and a recovery indicator appeared, the overall industry demand is still difficult to be optimistic.

In this context, the company’s rapid growth in net profit in the third quarter was particularly valuable.

We believe that the company’s high-quality customer structure and the increase in the proportion of high-value products such as LED headlights are the key factors supporting high growth.

Strengthen the operating quality under the weak market and increase the gross profit margin.

Expenses for the first three quarters of the company8.

9%, increasing by 0 every year.

4 units, of which, sales cost subsidy 2.

4%, a decline of 0 per year.

3 units; management expenses 2.

7%, rising by 0 every year.

3 averages, but the management expense ratio in the third quarter decreased by 0 compared with the second quarter.

01 averages.

Under the background of the overall pressure on the industry, the company’s expense management is reasonable, and the operating quality is continuously improved.

In terms of gross profit margin, Q3’s gross profit margin was 24.

3%, an increase of 3 per year.

The four totals increase by 0 from Q2.

Six-digit figures. The increase in gross profit margin was mainly due to the continuous increase in the amount of high-margin products supported by the company.

New projects and new technology reserves are abundant, and the production capacity layout is advancing steadily.

In the first half of 2019, the company undertook 34 new lamp projects and batch-produced 23 new models, with abundant project reserves.

In addition, the second phase of the company’s Foshan factory has been completed, and the first phase of the intelligent manufacturing industrial park will be completed in the third quarter of 2019.At the same time, the company will build a factory in Serbia to expand overseas customers and provide related support and supporting facilities.

The steady advancement 杭州桑拿网 of new projects, new products and new production capacity provides an alternative basis for the company’s continued growth in future performance.

The company will benefit from high-quality customer structure and lamp upgrade trends for a long time.

The company’s customers cover major domestic and foreign automobile manufacturers, including FAW-Volkswagen, SAIC-Volkswagen, FAW Toyota, Chery Automobile, FAW Car, SAIC-GM, GAC Toyota, GAC Passenger Cars, Dongfeng Nissan, BMW Germany, etc.As the first two major customers of the company, FAW Toyota has accounted for about 40% and 15% of its business in 18 years. Benefiting from the dense distribution of new models of many customers and the impact of the expansion of LED headlights into heavy volume, the company’s performance continued to grow rapidly.
We believe that under the 南京夜网 background of the growth of global auto sales growth, increasing pressure on car companies and the acceleration of lamp upgrade trends, the company is committed to providing quality customer structures and rapid service response capabilities to further expand new customers.change.

Profit forecast: The duration and impact of the overall weakness of the automotive industry in 19 years is expected to be greater than expected. We maintain our profit forecast for the company. It is expected that the company’s operating income for 2019-2021 will be 61.

31, 76.

17 and 85.

770,000 yuan, the net profit attributable to the owner of the parent company was 7, respectively.

49, 9.

31 and 10.

55 ppm, equivalent to 2 EPS.

71, 3.

37 and 3.

82 yuan, corresponding to the closing price of 82 on the latest trading day.

3 yuan calculation, the price-earnings ratio are 30.


4 and 21.

6 times.

The company’s customer-oriented structure is high-quality, and the automotive lamp industry has entered the stage of LED and intelligent acceleration applications. At the same time, the company’s downstream customers are welcoming a new product cycle with high performance certainty.

We maintain the company’s “prudent recommendation” investment rating.

Risk reminders: (1) the macro economy continues to be sluggish, the automobile market consumption continues to weaken, and the growth rate of automobile production and sales increases; (2) the Sino-US trade friction continues and escalates, the RMB exchange rate changes;Order conversions were less than expected.