Events:
The company's revenue in the first half of the year was 303 million yuan, up 52.8 percent from the same period last year; net profit was 64 million yuan, up 43.7 percent from the same period last year; gross profit margin was 44.4 percent, down 1.3 percent from the same period last year; and net profit margin was 21.1 percent, down 1.3 percent from the same period last year.
Viewpoint:
The company's business is divided into two parts:
Automobile stamping die manufacturing business: accounts for 81.5% of revenue, mainly exported to Europe and the United States. Revenue from this part of the business increased by 58% compared with the same period last year. The main products include door system and stamping die for body-in-white.
Automobile stamping parts manufacturing business: accounts for 18.5% of revenue, mainly for domestic customers. Revenue from this segment rose 28 per cent year-on-year.
The main direct customers of the company's mold business are Magna, Bozer, Vai and Qihao.
The main customers are all first-class parts giants in the world, and their business is stable.
Once the mold is sold, it cannot be adjusted substantially. The matching mold needs professional debugging personnel to stay around the customer, and provide timely support according to the actual situation of the customer's production site, so as to ensure that there is a certain technical threshold for customer production.
The company supports global projects, which can effectively avoid being involved in vicious competition in the domestic market and large fluctuations in the domestic automobile market.
The main end customers are Mercedes-Benz, BMW, Volkswagen, General Motors, Honda and Nissan.
The middle and low-end moulds supplied by the company have been transferred to China in recent years.
Gross profit margin and net profit margin remain basically stable
The cost of raw materials in the mold business only accounts for about 30% of the revenue, which is not affected by commodities.
Conclusion:
The company's business is still growing rapidly. The main direct customers and end customers are the international leaders of first-class spare parts and vehicle business, and the company's share in the main customers is stable. In recent years, the company has participated in the stamping die development of battery package components, which has a large future space; at the same time, the company has also participated in the stamping die development of a number of aluminum alloy lightweight parts, which is expected to develop rapidly in the future.
It is estimated that the company's revenue from 2018 to 2020 will grow by 43.8%, 28.1%, 21.3%, and its net profit will increase by 44.2%, 34.9%, 23.8%, and the corresponding PE will be 0.78, 1.05, 1.3 yuan and 18.5, respectively. We are very optimistic about the long-term growth of the company's profits and give the target price 33.07 yuan. at present, the stock price has 38% room to rise and is given a "highly recommended" rating.
Risk Tips:
Vehicle sales fell short of expectations; competition in the industry worsened.
