Events:

The company announced that in the three quarters of 2019, the operating income during the reporting period was 17.484 billion yuan, an increase of 78.64% over the same period last year; the net profit was-270 million yuan, down 303.55% from the same period last year; and the non-return net profit was-944 million yuan, compared with 26 million yuan in the same period last year.

Comments:

1.Q3 performance is lower than expected, gross profit margin, cash flow under pressure. The company's Q3 revenue in a single quarter was 7.564 billion yuan, an increase of 81% over the same period last year. The net profit returned to its mother was-365 million yuan, compared with 46 million yuan in the same period last year. Q3 single-quarter gross profit margin was-0.8%, down 14.6pct from the same period last year and 8.7pct from the previous month. The net cash flow of the company's operating activities is-6.2 billion yuan. Affected by the decline in subsidies and the delay in the payment of state subsidies, the company's third-quarter results were lower than expected.

two。 BAIC EU series won the first nine months of domestic sales of new energy vehicles.

BAIC sold 98000 new energy vehicles in the first nine months of this year, up 20% from the same period last year, and the domestic pure electric passenger car industry accounted for 16% of the market. Among them, BAIC EU series sales of 75000 vehicles, won the first nine months of domestic sales of new energy vehicles. BAIC EX series, won the A0 class pure electric passenger car market runner-up.

3.BEIJING brand release, BAIC independent integration is worth looking forward to.

Recently, BAIC officially launched the BEIJING brand, which is the core brand that integrates the product and technology resources of BAIC New Energy and Beijing Automobile. At the same time, the launch of the first model of the new brand is located in the BEIJING EU7 of "large pattern pure electric intermediate car". In the next five years, BAIC is expected to invest 20 billion in research and development of the BEIJING brand to create two new platforms. One is the flexible expansion of BMFA hybrid product platform. One is the BE22 pure electric platform, where more than six high-end pure electric models of the new BEIJING brand will be born in the future. At the same time, to open up sales channels, and to travel, taxis, rechargeable power and other areas.

4. Profit forecast.

Affected by the sharp decline in subsidies for new energy vehicles, the growth of industry sales stagnated in the third quarter, and the company was also deeply affected, with a significant decline in bicycle gross profit. Based on this, we estimate that the homing net profit of the company from 2019 to 2021 is 0.6 soybean 126 million yuan, and the corresponding PE is 309 Universe 150 Universe 96X, respectively 1.2x1.19x1.18X.

Risk hint: sales of new energy vehicles in the industry fell short of expectations, sales of EU series fell short of expectations, and subsidies fell faster than expected.