Events:
On the evening of October 26th, Olympian Electronics released its quarterly report for 17 years. In the first three quarters, the company achieved revenue of 295 million yuan, an increase of 34.54% over the same period last year, and a net profit of 46.0782 million yuan, an increase of 25.02% over the same period last year.
Main points of investment:
The beneficiary products are selling well and the performance is accelerating.
17Q3, the company achieved revenue of 103 million yuan, an increase of 34.18% over the same period last year, and a net profit of 15.7879 million yuan, an increase of 39.78% over the same period last year and 14.68% month-on-month growth. The company's Q3 performance growth rate exceeds that of the first half of the year, showing a trend of accelerated growth, and its rapid growth is mainly driven by: 1) the high prosperity of the heavy truck industry in the past 17 years. The company's main products used in the heavy truck industry: low-temperature start-up devices, electromagnetic solenoids and other sales are good; 2) since the third quarter of 17 years, the company's electronic shift products have gradually increased, contributing to the increment of performance.
Gross profit margin declined month-on-month, and expenses were better controlled during the period.
17Q3's comprehensive gross profit margin was 35.86%, down 3.69pct from the same period last year and 4.26pct from the previous year, which is speculated to be due to the rapid growth of shift gear business with relatively low gross margin in the third quarter. In terms of the period expense rate, the sales / management / financial expense rate of 17Q3 Company increased 0.03/-2.36/-0.11pct respectively compared with the same period last year, and the overall cost control was better, and the management expense rate decreased significantly, which is presumed to be due to the decrease of R & D expenses in the current period.
Downstream customers ushered in the peak season, the fourth quarter performance is expected to further increase in October, the company's largest customer-SAIC GM released a number of new models: GL6/ Yinglang / Xinying Lang / New Weilang / Weilang GS, etc., good market feedback, is expected to become a new popular style, as SAIC General Motors Co electronic throttle pedal core supplier, the company will significantly benefit, in addition, superimposed peak season effect We expect the company to achieve accelerated growth in the fourth quarter.
Gear shifter product upgrade, potential performance flexibility
With the improvement of the penetration of automatic shift models of passenger cars, electronic shift products will gradually replace the original manual shift controller. in this process, the unit price of the products will increase by 2-5 times. the company's electronic shift products are in a leading position in independent parts suppliers, has achieved the matching of many models, and is expected to expand more customers. On the other hand, the electronic shift products have high price, high gross profit margin, large market space and small performance base, so the new products are very flexible to the potential performance of the company.
Assuming that the company shipped 150000 electronic shift products in 18 years at a unit price of 550RMB / set, this alone will bring about 20 per cent revenue increment for the company. Due to the high gross profit margin of the new products, the performance flexibility is more than 20 per cent.
Highly flexible automotive electronic target, maintaining the "recommended" rating
Due to the faster development of electronic shift products than we originally expected, we raised the company's performance in 17-19. It is estimated that the company's EPS in 17-19 will be 0.42,0.58 and 0.78 yuan per share respectively, and corresponding to the current price, the PE will be 60,44 and 33 times respectively, maintaining the "recommended" rating.
Risk hint
Sales of commercial vehicles fell short of expectations; sales of Zhongtai and Jianghuai cars dropped sharply, etc.