Events:
The company released its third-quarter report on the 25th that its operating revenue in the first three quarters reached 956 million, an increase of 51.30% over the same period last year, and its net profit reached 108 million, an increase of 77.82% over the same period last year. At the same time, the release of full-year results estimate that the annual net profit of shareholders belonging to listed companies is expected to change from 90% to 130%, from 145 million to 176 million.
Comments:
With the acquisition of Hang Sheng card position in the commercial vehicle front loading market, Zhongtai Guangzhou Automobile has a far lower pre-loading permeability than passenger vehicles and the relevant passenger cars are required to install corresponding safety equipment. The company will take advantage of Hang Sheng to occupy the first-mover advantage of commercial vehicles and introduce passenger vehicle products. In addition to the original stock, the incremental models of the cooperative car factory and the trend of domestic replacement of imports are also conducive to the development of front equipment.
The three Flag winning bid Mobile Project reflects its strength, increasing its own capital and technology to promote the intelligent driving strategy subsidiary three Banner Communications won the bid China Mobile Limited project, which brings support to the company's future revenue and is conducive to the development of the company in the field of vehicle networking. The company added 5 million yuan to participate in shares focused on ADAS and self-driving technology, and invested 50 million yuan on the same day to build a liquid crystal instrument production line, which will be conducive to the landing of the company's intelligent driving strategy. In the near future, the company plans to deliver the intelligent cockpit, which is expected to become a new growth point of the company's performance.
The cost advantage of overseas business is obvious, with the help of giants to achieve global expansion of the company's overseas preloading business to expand customers in many countries. Intelligent public transport projects with Thailand's Zulis have been supplied one after another, and the cooperation with OLA, an Indian ride-hailing software service, has also been gradually deepened. Through cooperation with Fuji Tongtian, the company has indirectly accessed the global supply chain system and realized global supply by virtue of its advantages such as cost and short development cycle.
Profit forecast and valuation
We continue to be optimistic about the development of the company's front equipment market. The company's 2017-2019 net profit is expected to be 172 million, 261 million, 337 million, corresponding to EPS 0.94,1.43,1.84 yuan, maintaining a "highly recommended" rating.
Risk hint: the development of the preloading business is not as expected.
