The company released its third quarterly report: in the first three quarters, the company achieved operating income of 444 million yuan, down 20.67% from the same period last year; and realized net profit of 22 million yuan, down 46.10% from the same period last year, corresponding to 0.02 yuan of EPS.
Main points of investment:
The decline in revenue narrowed in the third quarter, while the decline in net profit expanded.
1) in the third quarter, the company achieved operating income of 125 million yuan per quarter, down 4.64% from the same period last year, which was significantly narrower than that in the first half of the year, mainly due to a low base in the same period last year. Since the third quarter, the heavy diesel engines represented by heavy trucks in No. 3 Middle School have been in a state of destocking due to emissions upgrading next year, resulting in a 10.41% and 6.87% drop in production and sales of heavy trucks in the third quarter, respectively. With the continuous progress of destocking, we expect the production and sales of heavy trucks in the fourth quarter to be optimistic, which puts great pressure on the company's performance. 2) the company's gasoline engine turbocharger R & D capability improvement, Wuxi turbocharger equipment production line, 200000 turbochargers expansion and technical transformation of the three major non-fund-raising projects plan to invest 147 million yuan. According to the current construction project of the company is only 1.4 million yuan, the depreciation pressure of the company in the future will be greater, which will also form a certain pressure on the performance of the company.
The future performance of the company.
1) according to the opinions on strengthening Energy Saving and Emission reduction in Internal Combustion engine Industry issued by the State Council, it is proposed that by 2015, the popularization rate of turbocharging technology for multi-cylinder diesel engines will reach more than 90%, and the application proportion of efficient turbocharging technology in automotive diesel engines will reach 100%. The proportion of application in automotive gasoline engines is more than 30%. According to the current light truck penetration rate of less than 40% and passenger cars less than 20%, the gasoline engine turbocharger industry is expected to usher in a period of accelerated development in the last two years. As a local leader, the company is actively entering the gasoline turbocharger industry, has begun to gradually scale up (Changan, Great Wall, etc.), and will timely through joint ventures and cooperation and the establishment of strategic alliances to introduce high and new technology to achieve great-leap-forward development (ST Qingqi reorganization report), so that the company will continue to be a local leader, giving priority to benefiting from the great development of gasoline engine turbocharger industry. We believe that the company's early carefully developed 20 projects are expected to gradually become the company's medium-and long-term growth point, the performance of the upward trend is obvious. 2) the company jointly established Tianyannan Yuchai supercharger company with Nanche Yuchai engine and Kaisheng Automotive Systems Company, accounting for 45% of the registered capital, which is expected to enter the new high-quality customer supporting supply system, thus contributing considerable revenue to the company.
Stock price catalyst.
1) at present, various localities are promoting the reform of state-owned enterprises one after another, and Shanghai, Jiangsu, Heilongjiang, Sichuan, Zhejiang, Fujian and other places are in the forefront of the country. Among them, Jiangsu and other places have recently come out with detailed rules for state-owned assets reform, and other provinces and cities are expected to continue to follow. 2) maintain the previous view: the Armament Group is the actual controller of the company, and its brother group, the Arms Industry Group, recently issued the "key points of the work of the Group's leading Group on Comprehensive deepening Reform 2014-2015" to speed up the reform. Therefore, we expect that the Armament Group may accelerate the reform, and the company is expected to benefit.
Keep the earnings forecast unchanged, maintain the "overweight" rating we maintain the previous earnings forecast unchanged, maintain the "overweight" rating, it is recommended that we continue to pay attention.
