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The company released its third quarter report in 2017, with operating income of 955.7863 million yuan in the first three quarters, an increase of 51.30% over the same period last year, and net profit of 107.9198 million yuan, an increase of 77.82% over the same period last year. Of this total, Q3's single-quarter operating income was 392.8125 million yuan, an increase of 66.72% over the same period last year, and its net profit was 50.7518 million yuan, up 93.59% from the same period last year. The company expects its net profit to change from 14542.94 to 176.0461 million yuan in 2017, with a range of 90% 130%.
Main viewpoints
1. Operating income has increased significantly, and expense rate has remained stable
1) the company achieved operating income of 955.7863 million yuan in the first three quarters of 2017, an increase of 51.30% over the same period last year, of which the operating income of Q3 was 392.8125 million yuan, an increase of 66.72% over the same period last year. The main reason is the acquisition of Shanghai Sanqi and Wuhan English card merger table and the rapid growth of the company's revenue. 2) driven by smart CID products, the comprehensive gross profit margin in the first three quarters rose 1.86 percent year-on-year to 31.86 percent. 3) the rate of management expenses increased by 0.26 percentage points over the same period last year, while the rate of sales expenses decreased by 0.76 percentage points. 4) due to the improvement in performance and the consolidation of new subsidiaries, the net profit of homing in the first three quarters increased by 77.82% compared with the same period last year.
two。 Epitaxial M & An accelerates the transformation and deepens the layout of vehicle networking
1) on August 15, the company announced the acquisition of 95% stake in Shanghai Hangsheng Industrial, a high-tech front-loading company, to optimize the company's existing product structure, so as to speed up the strategic goal of transforming from rear-loading business to forward-loading business, and smoothly cut into the field of commercial vehicle business. 2) during the reporting period, the company made great efforts to open up the field of car networking, completed the acquisition of Sanqi Communications and British Card Technology, and deepened the development of overseas intelligent public transport and ride-hailing services; and combined with the acquisition company's technology and its own R & D advantages, formed a comprehensive and complete vehicle networking industry application solutions, such as public transportation, taxi, logistics bus, school bus, long-distance bus, police car, engineering vehicle and so on.
Sales of 3.CID series hit a record high, and intelligent cockpit products will be launched soon.
During the reporting period, the revenue of the company's intelligent CID products and multimedia navigation CID products grew rapidly, growing by more than 60% and 30% respectively, and the gross profit margin increased steadily. In terms of research and development, the company relies on the technology accumulation in the field of CID system, actively carries out intelligent cockpit product research and development, and realizes the interactive mode from the traditional CID central control as the core to the in-car multi-screen fusion of liquid crystal instrument, head-up display system (HUD) and backseat entertainment system. In the future intelligent network connected automobile era, the intelligent cockpit will be the core of human-computer interaction in the car. At present, the company has completed product development and testing, will be put into production and listing in the near future, the company's Q4 performance is expected to benefit.
4. Investment advice:
The company is the leading enterprise of CID system, with smooth business transformation in recent years, remarkable achievements in vehicle networking and intelligent driving development, and great potential for future growth. It is estimated that the net profit from 2017 to 2019 will be 1.70,2.55 and 330 million yuan respectively, corresponding to 46,31 and 24 times of PE respectively, maintaining the "recommended" rating.
5. Risk Tips:
The intelligent cockpit business is not up to expectations; the expansion of commercial vehicle networking is not up to expectations.
