Event
On April 27, 2018, the company released its 2017 annual report. According to the annual performance report, net profit attributed to the owner of the parent company in 2017 was 367 million yuan, down 17.73 percent from the same period last year, while operating income was 5.184 billion yuan, down 0.87 percent from the same period last year.
Comments:
Short-term corporate performance will be under pressure. Affected by the cost, the business increment of automotive air-conditioning compressor does not increase profit. The 2017 company sold 8 million sets of automotive air-conditioning compressors, an increase of 5.54 percent over the previous year, and realized sales revenue of 3.346 billion yuan, an increase of 12.01 percent over the same period last year. However, affected by the increase in the price of raw materials and labor costs, operating costs increased by 20.56%, while gross profit decreased by 9.66% to 839 million yuan.
Downstream customer supporting models parking, automotive air-conditioning system business revenue has declined seriously. GM's air-conditioning system revenue fell in 2017 because of the suspension of production of some of its major models in North America. The operating income of the air conditioning system project was 1.338 billion yuan, down 20.40% from the same period last year, and the gross profit was 108 million yuan, down 26%.
The company has carried on the corresponding structural adjustment to each business, we are optimistic about the development of the company for a long time. Compressor business: first, expand the production and sales of piston swashplate compressors (especially externally controlled variable displacement compressors).
Sales of piston compressors exceeded 1.6 million in 2017, an increase of 35 percent over the previous year, and is expected to maintain rapid growth in 2018. Tamp the leading and leading position in the field of electric compressor. In 2017, the company has a production capacity of 900,000 units per year (three shifts) and has become a supplier of electric compressors from well-known manufacturers at home and abroad, such as BYD, BAIC New Energy, Germany (Volkswagen) and FAW (Volkswagen). April 2018 bulk supply of BYD and BAIC new energy. It is expected that the company's production, sales and market share of electric compressors will be significantly increased in 2018. Automotive air conditioning system business: first, focus on the development of new energy vehicle thermal management system business, including air conditioning system and battery thermal management system. The company provided design and development for NIO Inc. New Energy vehicle (ES8) in 2017, and will achieve batch supply in 2018; provide new energy bus battery pack cooling system for CATL, mainly to solve the problem of battery heating during high voltage and fast charging; second, actively expand domestic customers. The subsidiary air conditioner international used to focus on foreign brands and joint venture brand manufacturers. In 2017, the company shifted the focus of business development to domestic independent brand manufacturers, and carried out development cooperation with a number of domestic vehicle manufacturers. At present, there are more than 40 development projects (including traditional cars and new energy vehicles), and the total number of development projects is 2-3 times that of previous years, which will provide favorable support for the company's future business growth.
Risk Tips:
This investment may face market risk, technical risk, operational risk, management risk and financial risk in the future business process. Investors are invited to pay attention to the investment risk.
