Event: the company expects 18 mid-year report results to increase by 45.1% MUE 67.2% over the same period last year. The company issued a forecast of 18 Mid-year report results, and expected to achieve a net profit of 92 million yuan to 106 million yuan in the first half of 18 years, an increase of 45.1% PUE 67.2% over the same period last year. The company's performance has achieved a large increase, which is related to the rapid growth of the company's new products, such as electro-hydraulic pumps, automatic transmission pumps, automotive electronics, etc., as well as the steady growth of the sound insulation and noise reduction business acquired by the company. In addition, the company expects that the non-recurrent profit and loss in the first half of the year will affect the company's net profit by 25-3.5 million yuan, but will not have a significant impact on the performance.
The company actively transformed and upgraded in response to changes in market demand, gradually increased the number of investment projects in the face of industry changes, actively transformed and upgraded to cope with changes in market demand, and developed automatic gearbox pumps, EHPS electro-hydraulic pumps, EPS motors, PEPS, etc., according to the annual report, 500000 new electro-hydraulic steering pumps were added in 17 years, and gearbox electric pumps have been supplied in bulk to automobiles and Shandong Shengrui. EPS Motor has also obtained the customer production plan, 18 years of the company's new business continues to meet our expectations.
The new business provides a broad space for development, and the company is transforming to a comprehensive solution service provider. We believe that the biggest focus of the company in the future is the electric pump with high technical barriers. The double improvement of permeability and bicycle value brought by the market of electric pump, EHPS, EPS motor and gearbox mechanical pump will provide the company with broad space for development. In addition, the company has completed the acquisition of Cacus, a supplier of noise reduction and thermal insulation products, which is conducive to its product diversification and expansion of the global market. The company gradually began to provide system solutions, from steering system components suppliers to steering, transmission, braking, automotive electronics, car body and other systems integrated service providers of auto parts.
Investment suggestion
The company used to be the leader of automobile steering pump, and its management and profitability have been maintained at a high level for a long time.
At the same time, the company has a number of automotive electronic technology reserves, electric pumps and other product projects are progressing smoothly, has broken through the steering system into the transmission and braking system. The growth of the company is high, and the company realizes the development of endogenous and epitaxial two-wheel drive after the acquisition of CCI. We estimate that the company's EPS for 18-20 years will be 2.31,3.25,3.99 yuan respectively, and the corresponding share price PE will be 15.1, 10.7, 8.7 times, maintaining a "buy" rating.
Risk hint
The growth of traditional main business is lower than expected; the expansion of new projects is not as expected; the risk of integration after the acquisition of CCI.