Main points of the report
Event description
On April 11, Weidi shares released its 2015 annual report: the company achieved an annual operating income of 203 million yuan, an increase of 0.27% over the same period last year, and its mother's net profit was 79 million yuan, down 5.35% and 0.72 yuan compared with the same period last year. Of this total, Q4 achieved an operating income of 74 million yuan in a single quarter, an increase of 72.09% over the same period last year, and a net profit of 27 million yuan, an increase of 22.1% over the same period last year.
Event comment
The growth rate of the bus industry is slow, and the company's revenue has increased slightly, which is basically in line with expectations as a whole. CAN bus is the company's main products: CAN bus product revenue 179 million (+ 3.03%), instrument revenue 1.65 million (- 31.21%), sensor revenue 7.7 million (- 2.9%), controller revenue 8.59 million (- 31.9%). As the leader of domestic bus CAN bus, the company occupies about 50% of the market of bus CAN bus. The sales performance of buses, especially medium-and high-end buses, has a direct impact on the company's overall revenue. In 2015, large bus sales increased by 3% compared with the same period last year, while bus sales fell 6% in the first three quarters. It grew by 22% in the fourth quarter compared with the same period last year. This is also in line with the company's revenue decline in the first three quarters and a sharp increase in the fourth quarter. The gross profit of other products such as instruments and sensors is low, and the company gradually reduces its investment.
Gross profit is stable, and the cost of sales has risen, resulting in a decline in net profit. The company's gross profit margin remained stable, the company continued to expand the market due to sales and after-sales personnel, the annual sales fee increased by 19.13% over the same period last year. It also led to a decline in net profit compared with the same period last year.
CAN bus still has great penetration potential, the core card position advantage brings huge extension space, long-term optimistic, give "buy". 1) the penetration rate of CAN bus in domestic buses is less than 40%, while that in foreign countries is 100%. At the same time, trucks are also gradually equipped with CAN bus. There is still a large space for penetration in the future. 2) the CAN bus is the nerve center of the automobile, which links the control unit of all parts. The company has mastered all the data and information of the whole bus, and covers nearly 50% of the high-end bus market, which lays a natural foundation for the construction of bus networking platform and intelligent driving. It is estimated that 2016, 2017, 2018 EPS are 0.74,0.83,0.91 yuan, corresponding to PE are 74x, 66x, 60x respectively, give "buy".
Risk hint: bus sales decline; the company's extension does not meet expectations.
