Events:
The company released the 2016 annual report and the 17-year quarterly report, the company achieved revenue of 326 million yuan in 16 years, an increase of 21.87% over the same period last year, net profit of 51.1 million yuan, an increase of 29.25%, revenue of 87.9 million yuan in the first quarter of 17 years, an increase of 26.19% over the same period last year, and net profit of 16.52 million yuan, an increase of 26.02%.
Main points of investment:
The annual report has excellent performance, with high growth in all three main industries.
The company's annual report performance is basically the same as the previous performance KuaiBao, and the overall performance is excellent. The company's three main industries have all achieved medium-to-high-speed growth. Revenue from electronic throttle pedals, shift controllers and air conditioning controllers increased by 19.3%, 29.7% and 33.5% respectively compared with the same period last year. The revenue growth rate of shift controllers is much higher than that of sales (11.6%). We believe that this is due to the better heavy truck industry in the second half of 16 years. The company's commercial vehicle gearshift has increased greatly, and the price of commercial vehicle products is twice that of passenger vehicles.
From a sub-industry point of view, the company's 16-year passenger car business revenue increased by 24.2%, commercial vehicle business revenue increased by 22%. In addition, the company's passenger car business revenue accounted for more than 50% for the first time. Specifically, from the perspective of downstream customers, the company's sales revenue to Dongfeng Motor and brilliance Motor increased more (more than 10 million respectively). This is mainly because China V3, Dongfeng series passenger vehicles and Dongfeng commercial vehicles sold well in 16 years. In addition, it is worth noting that among the top five customers disclosed in the company's annual report, the sales revenue to SAIC GM was 20.537 million yuan, a decrease of more than 50% compared with the previous year. We believe that this is due to differences in disclosure caliber, 16-year annual report is a single customer caliber, we estimate that the actual SAIC GM merger caliber sales revenue should be on the rise.
In terms of gross profit margin, the company's overall gross profit margin remained stable, but the segment of the business changed. Among them, the gross margin of the electronic throttle pedal business increased 5.27pct compared with the same period last year, mainly due to economies of scale caused by increased product sales and the decline in procurement costs, but we believe that this trend is difficult to maintain in the long run, mainly due to the annual decline in auto parts and the gradual increase in the proportion of passenger car products with low gross margin.
The gross margin of the company's shift controller fell 5.28pct, due to an increase in the share of passenger car products. In terms of three expenses, management expenses increased 1.02pct compared with the same period last year, mainly due to the increase in staff salaries and R & D expenses, and the decrease in financial expenses 0.77pct, mainly due to the decrease in loan interest.
Benefit from the high prosperity of heavy trucks and high performance growth in the first quarter
The company achieved a net profit of 16.52 million yuan in the first quarter of 17 years, slightly higher than the upper limit of 16.5 million yuan in the previous performance forecast, which is basically in line with expectations. The growth rate of revenue and profit in the first quarter is basically the same, both about 25%. Its rapid growth is mainly due to the substantial growth of air conditioning system (+ 61.7%), low temperature start-up (+ 45.5%) and solenoid business (+ 508.9%). A large proportion of the downstream customers of these three are commercial vehicles, so the high growth in the first quarter mainly benefited from the high heavy truck boom since the second half of 16 years.
Excellent business transfer target, excellent independent parts supplier
The company's electronic throttle pedals and shift controllers were initially used in commercial vehicles, and then gradually expanded to passenger cars, developing brilliance, Great Wall, Jianghuai and other passenger car customers. The company's passenger car business revenue share has increased from 34% in 2013 to 51% in 2016. With the continuous expansion of the company's passenger car products and customers, we expect the company's passenger car business share to continue to increase in the next few years.
The company's passenger car business has grown rapidly since 2013, and the current customers are mainly SAIC General Motors, Dongfeng Fashion, Jianghuai Automobile, brilliance Automobile and so on. We believe that with the deepening of the layout of the passenger car sector, the company is expected to enter more excellent vehicle supply system. According to the company's quarterly report, the company has newly expanded Zhongtai Automobile as a customer in 17 years to provide its supporting knob electronic shift. At present, it has been sold in batches, and this product has broken the technological monopoly of foreign companies, which is the first in China, and it is expected to become a new profit growth point for the company. In addition, the company's "General Motors Co global electronic throttle project" has entered the OTS approval stage, indicating that the company is entering a new era of globalization. All in all, in the next few years, "product upgrade" and "customer upgrade" will become the main theme of the company's growth.
Recommended rating
We estimate that the company's EPS in 17-19 is 0.83,0.93,1.11 yuan respectively, corresponding to the current price, PE is 57,51 and 43 times respectively, covering for the first time and giving a "recommended" rating.
Risk hint
Sales of commercial vehicles fell short of expectations; sales of Zhongtai and Jianghuai cars dropped sharply, etc.