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威孚高科(000581/200581)年报点评:净利率创历史新高 派息率大幅提升

中金公司 ·  Apr 17, 2018 00:00  · Researches

The 2017 results are in line with expectations Weifu Hi-Tech announced 2017 results: operating income of 9.02 billion yuan, up 40.4% year on year; net profit attributable to parent company was 2.57 billion yuan, up 53.8% year on year, corresponding to earnings of 2.55 yuan per share. It is in line with the performance forecast previously issued by the company. The development trend net interest rate reached a record high, and the division's profit contribution increased. The company's net interest rate in '17 reached 28.5%, an increase of 2.5 percentage points over the previous year, a record high. Under the heavy truck cycle, the company's scale effect and product restructuring brought significant improvements to gross margin and expense ratio: the company's gross margin increased by 1ppt to 25%, and the management and marketing expenses ratio decreased by 3.3ppt to 12.5%. In addition, thanks to the steady growth of Bosch Diesel and Zhonglian Electronics, the company's investment income increased by 34.5% to 1.85 billion yuan, accounting for 65% of profit before tax, down 11 percentage points from the previous year. The contribution of the company's headquarters business, especially fuel injection systems, increased. The fuel injection and intake systems will double in volume, and 2H18 pressure may appear. The company's revenue for fuel injection systems and intake systems increased 54.6% and 48.4% year-on-year, with gross margins increasing by 1.6 and 1.8ppt to 30.5% and 25.0%, respectively. Among them, sales of fuel injection systems and multi-cylinder pumps surged 60.2% to 2.77 million units, mainly due to the strong heavy truck cycle. The company's 17-year heavy truck related profit accounted for more than 60%. This year's heavy truck cycle peaked and will put pressure on performance. However, currently, 1-2 Q orders have not declined, or will mainly affect 2H18's performance. Update requirements. The dividend ratio has increased dramatically, and sufficient cash supports epitaxial expansion. The company raised its 17-year dividend ratio by about 11 percentage points to 47.1%, corresponding to a dividend rate of 5.2%. The company's operating cash flow remained high at 960 million yuan, an increase of 81.6% over the previous year. There is sufficient cash on the account, which is expected to guarantee the company's high dividend ratio and support the company's continuous development into new energy and other fields. Profit forecast As the growth of the company's aftertreatment and intake systems exceeded our expectations, we raised our 2018 profit forecast by 6.5% from 2.51 billion yuan to 2.67 billion yuan. Introduced a profit forecast of $2.87 billion for 2019e. Valuation and recommendations The company's current stock price corresponds to 8.8/8.2 times P/E in 18/19. Maintain the recommended rating for A/B shares, and temporarily maintain the target price of HK$32. The target price for A shares corresponds to 12.1/11.3 times P/E in 18/19, with 38% room compared to the current stock price. The target price for B shares corresponds to 9.0/8.4 times 18/19, with 78% room compared to the current stock price. Sales of risky heavy trucks fell short of expectations.

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