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悦达投资(600805)中报点评:各项业务均在复苏 悦达起亚潜力仍存

Yueda Investment (600805) Interim Review: All Businesses Are Recovering, and Yueda Kia's Potential Still Exists

太平洋證券 ·  Jul 25, 2018 00:00  · Researches

Event: the company reported that its revenue reached 1 billion yuan, an increase of 36% over the same period last year, and the net profit returned to its mother was 100 million yuan, an increase of 1072% over the same period last year.

Performance weighting plate Yueda Kia recovery is obvious. Korean cars as a whole were in a state of recovery in the first half of the year, with sales of Hyundai in Beijing up 25 per cent year-on-year and Yueda Kia, which is 25 per cent owned by the company, up 33 per cent to 170000 units, making it one of the best car companies in the first half.

Yueda Kia still has potential. Despite the substantial increase in sales, Yueda Kia's sales revenue in the first half of the year increased by 14% compared with the same period last year, with a net profit of only 22 million yuan, basically in a state of break-even. In the second half of the year, Kia will still have a small SUV on the market, and sales will further increase, when its economies of scale will re-appear, and net profit is expected to accelerate growth.

The highway business is still relatively sound. Shaanxi Xitong Highway, which is 70% owned by the company, made a net profit of 30 million in the first half of the year, Tongda Railway, which has a 55% stake, made a net profit of 6 million yuan, and Beijing-Shanghai Expressway, which has a 21% stake, made a net profit of 660 million yuan. Highway business has become the mainstay of the company's low performance in recent years.

Some business bleeding sites began to stop bleeding, but there are still some areas that need to be improved. In the past, the company's performance baggage textile business began to stop bleeding, with an income of 600 million yuan and a net profit of 15 million yuan in the first half of the year. The company introduced a new management team and partners in the textile business sector, which achieved remarkable results. The agricultural machinery business is still in the doldrums, causing a loss of 36 million yuan in the first half of the year, and the company is actively looking for new ways to improve.

Investment advice. We expect the company's net profit from 2018 to 2020 to be 1.33,1.52 and 175 million yuan respectively, and the current stock price corresponds to the dynamic PE:35 times in 2018. All the businesses of the company are recovering, and Yueda Kia, the main performance segment, still has the potential to improve, and we maintain the company's "overweight" rating.

Risk hint. Sales of the new model fell short of expectations.

The translation is provided by third-party software.


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