Events:
The company released its semi-annual report on August 26th, with operating income of 1.31 billion yuan in the first half of the year, an increase of 5.80% over the same period last year, and a net profit of 10.7196 million yuan, down 92.25% from the same period last year.
Comments:
The fundamentals of the company are gradually repaired to turn losses into profits. The company's operating income in the first half of the year was 1.31 billion yuan, an increase of 5.80% over the same period last year, and its net profit was 10.7196 million yuan, down 92.25% from the same period last year.
The sharp decline in net profit from the same period last year is mainly due to the fact that the income from land acquisition and storage in the same period last year affected the net profit by 68.05 million yuan. And affected by epidemic prevention and control measures in the first quarter, the construction progress of the project was slow, and the main business of the landscaping plate was basically suspended, but with the gradual recovery of the economic situation, the industrial project resumed, and the company went all out to resume production. In the second quarter alone, the net profit was 63.3439 million yuan, an increase of 28.34% over the same period last year, turning losses into profits, and the fundamentals were gradually repaired.
Industry-university-research promotes the improvement of technical capability, and leads the industry in auto parts products. The company invested 57.1115 million yuan in R & D in the first half of the year. The company has cooperated with Qingdao University of Science and Technology, South China University of Technology and the University of Waterloo in Canada. Adhering to the purpose of "material technology drives product improvement", we actively carry out technological innovation of polymer materials. As one of the most important modular suppliers of non-tire rubber products for domestic commercial vehicles, the company's rubber products business reached 561 million yuan, with a gross profit margin of 33.21%, an increase of 3pct over the same period last year. Now we have mastered the advanced virtual prototyping system integrated design matching technology to provide technical support for the suspension assembly product development and design, and the company's auto parts products have reached the industry-leading level.
The commercial vehicle market ushered in a pick-up, which is expected to drive the further development of the company's auto parts sector. According to the China Association of Automobile Manufacturers, in 2020, after April, the monthly sales of commercial vehicles reached an all-time high in June. The production and sales of commercial vehicles completed 527000 and 536000 respectively, an increase of 77.9% and 63.1% respectively over the same period last year. The commercial vehicle market ushered in a pick-up, and the company aimed at commercial vehicles as the target market, laying out and developing damping products for commercial vehicles of various varieties and small batches. Rubber products accounted for 42.86% of the revenue in the first half of last year, which increased by 7.84pct to 42.86% at the end of last year.
Coverage for the first time, giving the company an "overweight" rating. It is estimated that the EPS of the company from 2020 to 2022 is 0.10 yuan / 0.14 yuan / 0.18 yuan respectively.
Risk Tip: PPP business model risk, payback risk.
