The company's 2020H1 performance is in line with expectations, cost reduction and efficiency measures have been steadily promoted and initial results have been achieved, raising the gross profit margin of construction and household electrical motor products under the adverse situation of pressure on downstream demand caused by the epidemic, and is expected to enjoy higher performance flexibility after the recovery of downstream demand. Maintain the company's 2020-2022 EPS forecast of 0.03, 0.07, 0.08 yuan, the current price corresponding to the PE is 118-47-42 times, maintain the "overweight" rating.
2020H1 performance is in line with expectations, deducting non-home net profit growth compared with the same period last year. The company's 2020H1 revenue / return to the parent / deduction of the net profit of the non-return to the parent is RMB 3505Universe 076Universe (year-on-year-26.13% Universe 72.09% Universe 26.07%, the same below).
Among them, the net profit of 20Q2 revenue / homing / deducting non-homing is 1.982, 0.53, 0.53, 000.%). On the revenue side, the decreases of 20Q1 and Q2 are similar, which is due to the limited production of the company's factory and the weakening of downstream demand under the influence of the epidemic situation; the sharp decline in net profit is due to the increase of about 250 million of the investment income gained by 19Q2 from the sale of 50% equity interest in Beijing Petrai Motor Drive Technology Co., Ltd. In terms of deducting non-net profit, 20Q1 and Q2 remained positive and increased month-on-month in two quarters, indicating that the company has achieved certain results in strengthening cost control and production efficiency management measures.
Non-air-conditioning motors and starters and generators are growing against the trend, while new energy vehicles and air-conditioning motors are suppressed by terminal demand.
2020H1 air-conditioning motor / non-air-conditioning motor / new energy vehicle motor / starter and engine motor revenue of 10.50 million yuan (- 39.24% Universe 9.95% Universe 65.55% Universe 5.27%), gross profit margin 19.40% 27.25% / undisclosed / 19.27% (+ 5.67 cusp 1.88 / undisclosed /-0.58pcts). Affected by COVID-19 's epidemic situation, the output of 2020H1 air conditioners / new energy vehicles in China is 104.149 million / 397000 (- 16.4% torque 36.5%). The suppression of downstream terminal demand has led to negative growth in the company's air conditioners and new energy vehicle motor business at the revenue end, while non-air conditioning motors and starters and generators have continued to reverse the trend in 2019. From the gross profit point of view, the increase in gross profit margin of construction and household electrical appliances motor products (air conditioning + non-air conditioning) is mainly due to lean production, cost reduction and efficiency measures.
If the Ballard shares are reduced and put into production and operation, it is expected that the long-term strategic cooperative relationship between the two sides will remain unchanged. The company announced on August 10, 2020 that it intends to reduce its stake in Ballard Power Systems (BLDP) shares to no more than 17.25 million shares within 12 months, accounting for about 7.13% of Ballard's issued common shares. According to the maximum reduction and the number of ordinary shares issued by Ballard Power system on March 31, 2020, the company still holds about 2.36% of Ballard shares after the reduction, and is expected to maintain a long-term cooperative relationship with Ballard. The capital obtained from the reduction is about 711 million yuan, which will be invested in the future production and operation of the company to meet the capital needs of future development. At the same time, the funds obtained from the reduction will be included in other comprehensive income subjects, which will not affect the profits of the current period.
Risk factors: asset impairment exceeds expectations, sales of new energy vehicles fall short of expectations, and raw material prices fluctuate more than expected.
Investment suggestion: the company's 2020H1 performance is in line with expectations, cost reduction and efficiency measures are steadily advanced and initial results have been achieved, raising the gross profit margin of construction and household electrical motor products under the adverse situation of pressure on downstream demand caused by the epidemic, and is expected to enjoy higher performance flexibility after the recovery of downstream demand. Maintain the company's 2020-2022 EPS forecast of 0.03, 0.07, 0.08 yuan, the current price corresponding to the PE is 118-47-42 times, maintain the "overweight" rating.