Depth * Company * Desai Xiwei (002920): Performance is expected to usher in gradual mass production of improved intelligent driving products
The company released the third quarter report of 2019, and achieved a total revenue of 35 in the first three quarters.
500 million, down 12 a year.
7%; net profit attributable to mother 1.
4 ‰, a decrease of 57 per year.
8%; net profit after deduction to non-mother 0.
600 million, down 80 a year.
1%, basically 0 benefits.
The rapid decline in the company’s performance was mainly due to the weak demand in the auto market, the decline in sales of some of its supporting models, and increased investment in research and development.
The company’s customers continue to develop, and at the same time, it plans to deploy intelligent driving business. The intelligent connected car industry is expected to usher in an accelerated development period, and the company’s gradual mass production is expected to benefit significantly.
The company’s estimated earnings for 2019-2021 are zero.
37 yuan, 0.
55 yuan and 0.
73 yuan to maintain the overweight level.
Key points of support levels The downturn in the automobile market and the sluggish performance of investment in research and development, Q3 income turned positive, and the decline in profits narrowed sequentially.
According to data from the China Automobile Association, passenger car production in the first three quarters of 2019 is every thirteen.
1%, the company ‘s sales of some of its supporting aircraft fell, and the annual increase in the number of car manufacturers increased, the company ‘s revenue was -12 years.
7%, gross profit margin -2 per second.
Sales costs +7 per year.
The 5% is expected to be mainly due to the company’s efforts to expand customer development and new product promotion; the management cost is extended by +20.
9% is mainly due to the acquisition of 100% equity of 武汉夜生活网 German advanced antenna company ATBB, which is caused by the consolidation effect and the cost of M & A intermediary; R & D expenses +15 each time.
0% is mainly due to consolidation and increased R & D investment in areas such as intelligent driving; financial costs are +15 per year.
The 8% expectation is mainly due to the increase in exchange losses, with the four expense ratios totaling 20.
0%, ten years +4.
6pct; lower revenue and gross profit margin, higher expense ratio, resulting in the company’s non-deductible net profit gradually replaced 80.
1%; other income (embedded software tax refund income) and investment income (financial income and sale of Lanwei Xinyuan equity) increase by 0 each year.
38 and 0.
3.6 billion, net profit attributable to mothers increased by 57.
The output of passenger cars in Q3 2019 is ten years -7.
3%, the decline in 深圳桑拿网 the auto market narrowed, and the company’s revenue turned positive, +6 per year.
1%, gross margin 24.
1%, ten years +0.
6 points; sales, management, R & D, and financial expenses in the third quarter of 2019 were +87.
8%, +47.8%, the four expense ratios total 20.
3%, ten years +1.
6pct; Q3 company’s income, gross profit margin, expense ratio increased, other income increased by 0.
1.4 billion, net profit attributable to mothers and two years after deductions are -21.
1%, the decline was narrowed.
It is expected that through the gradual recovery of the passenger car market, the company’s supporting facilities will also gradually increase, and the performance will promote continuous improvement.
The project has abundant reserves and orders are expected to gradually increase.
In 2018, the company won new projects with an annualized order of more than 7 billion U.S. dollars. The project covers automatic parking systems, high-definition surround view systems, 24G millimeter-wave radar, T-box, V2X products, and automotive infotainment systems.The company has been awarded a platform for Toyota’s new platform project. It is expected to mass-produce in 2020. It will also add new customers such as Anford and DAF cars, and the market will expand smoothly.
Due to the sluggish demand in the auto market and the company’s R & D expansion in new product areas and short-term pressure on performance, it is expected that new projects will be successively put into production and volume, and the company’s performance is expected to stabilize and rebound.
Many products in the field of intelligent networking are about to enter the mass production period and are expected to contribute new growth points.
The company’s high-definition surround view system has achieved mass production and orders have been rapidly increased; the company’s high-definition panoramic fusion ultrasonic sensor-based automatic parking system has been supplied on Geely and Chery cars; T-Box products have been sold in many international and independent brandsV2X products have also been designated by international brand car manufacturers and are scheduled for mass production in 2020. They have reached strategic cooperation with FAW Group and other car companies in the areas of intelligent driving, intelligent cockpit, and car networking.
The company successfully acquired the German advanced antenna company ATBB in the first half of the year, and is committed to accelerating the company’s next-generation intelligent driving and connected car products and helping to expand its European customers.
Recently, the Development and Reform Commission stated that the “Smart Car Innovation and Development Strategy” will be introduced within the year, 5G technology has entered the commercialization stage, and the intelligent connected car industry has promoted accelerated development. The company’s forward-looking layout is expected to benefit significantly.
It is estimated that the prosperity of the automobile market is down, and the company’s performance is under pressure in the short term. We have lowered our profit forecast and expect the company’s earnings in 2019-2021 to be 0.
37 yuan, 0.
55 yuan and 0.
73 yuan (previous forecast was 0.
45 yuan, 0.
60 yuan, 0.
81 yuan), the company is a leading company in the automotive electronics industry, has a bright future in the field of autonomous driving, and its performance is expected to usher in improvement as the car market recovers.
To maintain the overweight level.
The main risks faced by the rating are 1) the car market sales are lower than expected; 2) the progress of the development and mass production of autonomous driving products is lower than expected.