FAW Fuwei (600742): Deducting dividends + 65% per year Tianjin plant climbs higher than expected
Event: The company announced three quarterly reports for 19 years and achieved operating income of 32.
0 billion (-5.
6%), net profit 1.
300 million (-2.
5%), due to receiving 61 million dividends from FAW Finance in 18Q3, the dividends for 19 years are expected to be distributed in the fourth quarter, instead of the difference in dividend bases to the parent net profit or +65.
The company’s EPS for 19-21 is 1 respectively.
59 yuan, corresponding to October 19.
8Xpe, maintain “Highly Recommended-A” rating.
Comments: 1. The company’s net operating profit for the third quarter of 2019 was +65.
2%, excellent customer structure analysis in the context of industry segmentation: FAW-Volkswagen Q3 outperformed the industry, and the Tianjin plant’s Tan Yue model climbed higher than expected. Since the third quarter, the auto industry has benefited from the replenishment of the five countries and six countries.The weak demand recovery from August to September, the performance was stronger than the previous month.
FAW-Volkswagen showed its leading advantages in the recovery stage, and the production side achieved 50 in the third quarter.
In terms of structure, the SUV vehicles that were listed on the market in the second half of last year were significantly better in the sedan segment, of which the Tianjin plant Tan Yue achieved output in the third quarter.
20,000 vehicles, 3 songs.
50,000 vehicles, Jetta VS5 achieved 8,500 vehicles (listed in September).
At the same time, due to the new models, especially Tanyue, as FAW-Volkswagen’s current top-end SUV, the profit contribution rate.
The climbing in the third quarter is expected to achieve profitability in the Tianjin plant. At the same time, the exploration headlamps are supported by Fuwei Haila, which is expected to drive Fuwei Haila’s single quarter revenue increase by about 100 million.
Analysis of profit structure: The automotive lamp business is growing rapidly every year, and the management costs are at least effectively controlled in 2018Q3. The company received 61 million yuan in dividends from FAW Finance Company. In 2019, FAW Finance issued dividends in the fourth quarter.Growth + 80%, dividends are expected to be objective.
The impact of subverting dividends, the company’s net operating profit for the third quarter of 2019 +65.
2%, outstanding performance in the context of the gradual industry.
We believe that there are two main components of optimization. First, the car light business continues to rapidly increase volume. Tan Yuechao expects that the climbing of the car light business will increase the single-quarter revenue of the car light business by about 1 billion;According to appropriate financial decisions, related management costs such as start-up costs have been incurred. This year, the new plant has been put into use and is operating well. Management costs 天津夜网 have also been optimized significantly.
In the fourth and fourth quarters, Fuwei Adorto consolidated its financial statements and expects to increase its annual revenue by 26%.
The US $ 900 million company completed the seat change of the seat company in the third quarter, and Fuwei Andalto formally consolidated its accounts in the fourth quarter.
The third quarter report predicts that the company’s revenue is expected to increase in the next reporting period26.
900 million in the future, which will lead to increased income, increased net assets, and the flexibility to improve net interest rates after consolidation.
3. What is the buying company buying?
Elasticity of industry recovery + optimization of business structure + continuous catalysis of reforms First, the elasticity of industry recovery.
70% of the company’s profit structure comes from FAW-Volkswagen, 20% from FAW Toyota, Volkswagen Tange, Tan Yue, Jetta VS series, Toyota Asia Dragon and other new cars are expected to have stronger performance in the peak season.
The static estimate is currently only 10.
8X is the estimated repair target.