Main points of investment
Revenue in the first three quarters of 2017 was 295 million yuan, an increase of 34.54 percent over the same period last year, and the net profit returned to its mother was 46 million yuan, an increase of 25.02 percent over the same period last year. In line with market expectations. The company announced that its revenue in the first three quarters of 2017 was 295 million yuan, an increase of 34.54 percent over the same period last year, and its net profit was 46 million yuan, an increase of 25.02 percent over the same period last year. In line with market expectations. Among them, revenue in the third quarter reached 103 million yuan, up 34.18 percent over the same period last year, and the net profit returned to the mother was 16 million yuan, up 39.78 percent over the same period last year. The gross profit margin was 35.86 percent, and the net profit rate was 15.55 percent, down 3.69 percent and 1.49 percent respectively over the same period last year. The growth rate of Q3 net profit is faster than that of the previous two quarters, mainly due to the rapid growth of sales of air-conditioning controllers and window controllers of commercial vehicles, which are driven by the high demeanor of the commercial vehicle industry. Management costs have been reduced.
Commercial vehicles maintain high demeanor and passenger cars enter the peak consumption season, which is conducive to the high growth of the company's Q4 performance. Driven by the factors of "Singles Day" and the Spring Festival, commercial vehicles, especially heavy trucks, are expected to continue to maintain a high prosperity in Q4, and the business of traditional automotive electronics such as air conditioning controllers and window controllers matched by the company to commercial vehicles is expected to achieve high growth; favorable factors such as entering the traditional consumption season at the end of the year and the withdrawal of purchase tax preferential policies next year will bring rapid growth to the company's passenger car business.
The gradual launch of new capacity will help the company's performance growth accelerate quarter by quarter. The company's IPO raised 3 million sets of electronic throttle pedals, 1 million sets of shift controllers and 500000 sets of electronic throttle valves were gradually completed and put into production. With the release of new capacity and the transfer of customer structure from business to business, the company's performance is expected to accelerate quarter by quarter and bring greater growth flexibility.
Investment advice: we predict that the company's earnings per share from 2017 to 2019 will be 0.39,0.53 and 0.72 yuan respectively, and the return on net assets will be 13.4%, 16.0% and 19.2%, respectively. To maintain the "Buy-A" investment rating, in view of the fact that the high growth of commercial vehicles continues to exceed expectations and the early consumption of passenger vehicles due to the withdrawal of purchase tax concessions at the beginning of next year, the target price for six months will be raised to RMB32.00, which is equivalent to 6 times the market-to-book ratio (PB) in 2018.
Risk hint: sales of matching models are lower than expected; the time for new capacity to reach production is delayed.
