Events:
The company announced that in the first three quarters, the company achieved revenue of 7.78 billion yuan, an increase of 7% over the same period last year, and realized a net profit of 620 million yuan belonging to shareholders of listed companies, an increase of 8.9% over the same period last year, a gross profit margin of 22.1%, an increase of 1 percentage point over the same period last year, a net interest rate of 8.6%, an increase of 0.1% over the same period last year, and EPS0.27 yuan, which was in line with expectations.
Single-quarter revenue growth is relatively high, profitability is steadily rising.
In the third quarter, domestic car sales reached 6.487 million, an increase of 25% over the same period last year. Thanks to the sharp increase in car sales, the company realized revenue of 2.45 billion yuan in the third quarter, an increase of 24.9% over the same period last year, and a net profit of 140 million yuan belonging to shareholders of listed companies, an increase of 12% over the same period last year. The main reason why the profit growth rate is lower than the revenue growth rate is that non-operating income decreased by 10 million yuan in the same period last year, excluding non-recurrent profit and loss. The company's net profit increased by 22% compared with the same period last year. During the reporting period, the company achieved a gross profit margin of 22%, an increase of 1% over the same period last year, and its profitability increased steadily. During the period, the expense rate was 13.3%, an increase of 0.3% over the same period last year, of which the sales expense rate, management expense rate and financial expense rate were 3.67%, 8.48% and 1.13% respectively, with year-on-year changes of + 0.20%, + 0.49% and-0.36%, which remained stable as a whole.
Stable growth is expected for the whole year, and assets are expected to be injected into deposits.
Domestic car sales in the first three quarters were 19.36 million, an increase of 13% over the same period last year, and the company's performance basically kept pace with the growth rate of domestic automobile production and sales. We believe that under the continued stimulation of the purchase tax halving policy, domestic automobile production and sales are expected to maintain a high growth rate for the whole year, and the company's main auto industry is expected to maintain steady growth throughout the year. In addition, the group owns new energy vehicle and battery manufacturing enterprises, the company has said that the group will do its utmost to support the development of Wanxiang money, while the group is willing to put high-quality assets into the Wanxiang cash flow. We believe that the company's main automotive business is stable, the group's new energy vehicle business continues to improve, and we also express our full support for the company's development, and there are expectations for the subsequent injection of high-quality assets.
Maintain the overweight rating, with a target price of 18.5 yuan
The company's main business is growing steadily, and it is actively transforming to the new energy vehicle industry, and its performance and valuation have a lot of room for improvement. We estimate that the company's EPS from 2016 to 2018 is 0.39,0.45 and 0.54 yuan respectively. Maintain the overweight rating with a 6-month target price of 18.5 yuan.
Risk hint: the growth rate of automobile production and sales slows down; the development of new energy vehicle business is not as expected.
