This report is read as follows:
The company has gradually expanded from home appliance motors such as air conditioners to automotive motors and new energy vehicle drive motors, and by taking a stake in the Baladar plus code layout hydrogen fuel cell business, the company is expected to be the first to benefit from the development of the industry in the future.
Main points of investment:
6. Cover for the first time, carefully increase the rating. The company has expanded from home appliance motors to new energy vehicle motors and fuel cells. It is estimated that the EPS from 2019 to 2021 will be 0.17,0.10,0.12 yuan, with reference to the industry average valuation of 23x PE, considering the fuel cell follow-up growth space to give a certain premium, giving 2019 27x PE, a target price of 4.6yuan, covering for the first time, and cautiously increasing the rating.
7. Affected by the impairment of goodwill, the company's performance fell sharply in 2018. The company's revenue reached 8.638 billion yuan in 2018, and its net profit was-2.376 billion yuan, a sharp decline compared with the same period last year. The main reasons include: 1) the decline of the company's gross profit margin compared with the same period last year due to tariff and market competition factors; 2) subsidiaries Shanghai Electric Power Drive and Petrelli set aside goodwill impairment of 2.1 billion yuan and 310 million yuan respectively, which has a great impact on the company's net profit.
8. Set up a vehicle industry group to give full play to the synergy of all parties. At present, the company integrates Shanghai Electric Drive, Petra, Wuhu Genori and Dayang Electric New Power into Dayang Motor vehicle Group, whose products include vehicle rotating motor, new energy vehicle drive system, automobile starter and so on. We believe that through business integration, we can give full play to the synergy of all parties in products and channel customers, and at the same time effectively control related costs and avoid the waste of resources.
9. Participate in Ballard, plus the layout of hydrogen fuel cells. Since 2016, the company has successively participated in business related to the layout of leading companies in the fuel cell field: 1) in August 2016, the company's wholly-owned subsidiaries contributed US $28.3 million to subscribe for a 9.9% stake in Canadian company Ballard; 2) the company's subsidiaries have the right to transfer 10% equity in the joint venture between Ballard and Weichai Power to further deepen tripartite cooperation. At present, the company's fuel cell products include battery modules, vehicle controllers, motor drive systems, etc., and through the participation of related companies in the industry chain to open up hydrogen storage and transportation, hydrogenation, fuel cell system development and other links, the future is expected to be the first to benefit from the development of the fuel cell industry.
10. Risk hint: sales of new energy vehicles fall short of expectations, and the company deducts impairment of goodwill
