Events:
According to the company's semi-annual report, the company achieved a revenue of 5.32 billion yuan in the first half of the year, an increase of 0.5% over the same period last year, and realized a net profit of 490 million yuan belonging to shareholders of the listed company, an increase of 8% over the same period last year, a gross profit margin of 22.6%, a year-on-year increase of 1.5%, a net interest rate of 9.7%, and a year-on-year increase of 0.45%, EPS0.21 yuan.
Steady growth in performance and improvement in profitability
The growth of the company's performance in the first half of the year was mainly due to the increase in car sales and the improvement of the company's profitability. The company's main revenue comes from the auto parts business, and domestic auto production and sales increased by 6.5% and 8.1% respectively in the first half of the year compared with the same period last year. Thanks to this, the company's main auto business achieved revenue of 4.62 billion yuan, an increase of 5.3% over the same period last year, which is basically similar to the overall performance of the industry. The material trade business achieved revenue of 400 million yuan in the first half of the year, down 36.5% from the same period last year, which had a negative impact on the company's overall performance. During the reporting period, the company further improved resource efficiency and efficiency, achieving a gross profit margin of 22.6%, an increase of 1.5 percentage points over the same period last year, and a significant improvement in profitability. The expense rate during the period was 12.6%, an increase of 0.6 percentage points over the same period last year, of which the sales expense rate, management expense rate and financial expense rate were 3.33%, 8.14% and 1.10% respectively, with year-on-year changes of + 0.21%, + 0.82% and-0.44%, which remained stable as a whole.
Steady growth is expected for the whole year, and assets are expected to be injected into the deposit.
In July, domestic automobile production and sales increased by 29% and 23% respectively compared with the same period last year, and the cumulative production and sales increased by 9% and 9.8% respectively from January to July compared with the same period last year. We believe that, stimulated by the policy of halving the purchase tax, domestic automobile production and sales are expected to maintain a relatively high growth rate for the whole year. Thanks to this, the company's main automobile industry is expected to maintain steady growth throughout the year. In addition, the group owns vehicle and battery manufacturing enterprises, which are high-quality targets for new energy vehicles. At the same time, 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 money tide. 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 in 2016-2018 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.
