Report guide
The company released its three quarterly reports for 2017.
Main points of investment
The performance is in line with expectations and is expected to maintain a steady growth trend throughout the year.
In the first three quarters of this year, the company achieved operating income of 2.448 billion yuan, an increase of 22.45% over the same period last year, and the net profit of shareholders of the parent company was 189 million yuan, an increase of 24.4% over the same period last year. The growth rate returned to the positive growth track, deducting 174 million yuan, an increase of 20.28% over the same period last year, and achieving earnings per share of 0.17 yuan Among them, the revenue in the third quarter was 955 million yuan, an increase of 32.73% over the same period last year. The net profit of shareholders belonging to the parent company was 117 million yuan, an increase of 205.36% over the same period last year, and earnings per share was 0.13 yuan. The overall performance in the first three quarters was in line with expectations, among which in the third quarter, thanks to the reversal in the performance of new energy auto parts, the net profit grew rapidly, alleviating the pressure on the growth of net profit caused by the decline in performance in the first half of the year. The company forecasts that the net profit of shareholders belonging to the parent company for the whole of 2017 varies from 200 million to 250 million yuan, from 4.81 to 31.02 percent year on year. It is expected to maintain a steady growth trend in the fourth quarter.
Xinneng car spare parts business performance reversed, profitability back to the right track
In the first three quarters, the company's refrigeration parts business and financial leasing business as a whole maintained a steady development trend. New energy automobile parts business was subject to industry policies in the first half of the year, and its performance fell short of expectations, and its performance reversed after the industry policy was relaxed in the third quarter. Thanks to the performance of new energy auto parts in the third quarter, the company achieved an overall sales gross profit margin of 21.01% in the first three quarters, increasing 0.35pct and 3.78pct respectively compared with the same period last year and month-on-month. At the same time, thanks to the steady increase in gross profit margin, the company's net sales profit margin reached 9.94% in the first three quarters, which increased 1.17pct and 3.91pct respectively in the first three quarters.
Profit forecast and valuation
It is estimated that the EPS of the company from 2017 to 2019 will be 0.2,0.27 and 0.36 yuan respectively, and the corresponding valuation will be 44 times, 34 times and 25 times respectively. The company announced earlier that it intends to purchase 95.42% of Yantai Shuchi's equity and 100% of Zhongzhi's equity by issuing shares to buy assets. In the future, with the continuous progress of this major asset restructuring, after the company's "manufacturing + sales + leasing + service" business chain business model has taken shape, the synergy of related business has become increasingly prominent, long-term development is worth looking forward to, and maintain the "buy" rating.
