In April 18, Dongfeng Yueda Kia passenger car sales totaled 33000, a year-on-year increase of 106.2% and 8.4% month-on-month growth of 8.4% from January to April. DYK accumulated sales of 115000 vehicles, an increase of 23.6% over the same period last year. The overall performance is good, and its high-speed growth mainly comes from the gradual elimination of the impact of the "THAAD incident" and the recovery of sales; the smart running performance of the replacement model is better.
On April 17, 2018, Dongfeng Yueda Kia's new smart run went on the market, with a price range of 11.99 yuan to 139900 yuan, a total of 2 configurations, one for manual gear and one for automatic gear. New Zhirun price has reached the range of the same level of mainstream independent brand SUV, its appearance, configuration have been greatly improved, cost-effective advantage is significant.
New Zhirun achieved a sales level of 4836 vehicles less than half a month after its launch, and its performance is excellent. It is still in the process of climbing the slope. We think that in steady state, its monthly sales are expected to reach 8000-10000 vehicles. In addition, we expect that in the context of diversified consumer demand, the new Zhirun is expected to launch more equipped models, which will help the overall sales level to a higher level.
In addition to the new smart run, in 2018, Dongfeng Yueda Kia is expected to launch other models such as Yi run (small SUV), K5 PHEV version, K3 and so on. We expect sales of 430000 vehicles for the whole year, an increase of 19.6% over the same period last year.
Investment advice. The company's key shareholding enterprises: Jiangsu Beijing-Shanghai Expressway, Shaanxi Xitong Expressway and other capital profits are stable, and the performance of Chenjiagang Power Plant is also expected to hit bottom. We believe that Dongfeng Yueda Kia is gradually improving, the company has passed the worst, and the follow-up is worth looking forward to. The company is expected to make a net profit of 1.33,1.52 and 175 million yuan respectively from 2018 to 2020, covering it for the first time and giving it a "overweight" rating.
Risk hint. Sales of new models fell short of expectations