Xinquan (603179): Downstream performance tightly awaits 成都桑拿网 market stabilization and recovery
Event: On April 27, 2019, Xinquan shares disclosed the quarterly report for the first quarter of 2019.
The company achieved operating income in the first quarter of 20197.
54 ppm, a ten-year average of 22.
Realize net profit attributable to mother 0.
54 ‰, 28 years ago.
Net profit after deduction is 0.
5.3 billion, 28 years ago.
Opinion: Downstream demand continues to be weak and operating results are under pressure.
Affected by continued weakness in the automotive market, Geely’s sales in the first quarter of 2019 fell by 5%, and SAIC’s passenger car sales fell by 17.
GAC Fick is a joint venture brand customer of the company. The sales volume in the first quarter of 2019 was 41%.
Consumption in the Chinese automotive market has 重庆耍耍网 increased significantly, sales of core customers such as Geely and SAIC have increased, and short-term pressure on business operations has been transmitted.
In the first quarter of 2019, the company’s operating income and net profit both showed an increase.
Fund-raising projects have been launched one after another, and production capacity has been guaranteed to grow steadily.
In June 2018, the company’s convertible bonds were issued smoothly, and the Changzhou and Changsha bases progressed smoothly.
In April 2019, the company’s public issuance plan was reviewed and approved by the CSRC, and the construction projects of Xi’an and Ningbo production bases were advanced smoothly to ensure the space for future development of the company.
The new production capacity of the company was released in an orderly manner. The supporting needs of customers such as Geely and SAIC were adequately guaranteed, and the company had a solid foundation for growth.
The company plans to build a production base in Malaysia to cultivate the Southeast Asian market and promote business development.
New models escorted core customers, and new products were released to improve profitability.
The passenger car business module is the main driving force for the company’s high growth.
As Jiaji, Xingyue and other new car sales climbed, core customers such as Geely tried to stabilize and rebound.
The new Tiggo 8 is coming soon, and Chery is expected to maintain steady growth.
The company actively explores new energy vehicle business and enhances its competitiveness in the segment of interior and exterior trim parts.
New external products such as bumpers are supplied to joint ventures such as Guangfei Ke. The construction of related production bases has been steadily progressing. The contribution of new products is expected to gradually increase, and the performance of passenger car business will gradually improve.
Earnings forecast and rating: Considering the impact of continued weakness in the automotive market, we lowered the company’s operating performance forecast.
We estimate that the company’s operating income from 2019 to 2021 will be 38.
900 million, 45.
6 ppm and 50.
500 million yuan, the net profit attributable to the parent company is 3.
300 million, 4.
100 million and 4.
6 trillion, corresponding to a diluted EPS of 1.
46 yuan, 1.
81 yuan and 2.
Leveraging strong autonomy, the leading decorative parts have opened up channels for improvement. The company is a strong independent core supplier. We maintain the company’s “overweight” rating.
Risk factors: higher-than-expected risks in the automotive market; risks of fluctuations in raw material prices; slower-than-expected risk of new base construction.