Depth * Company * Baolong Technology (603197): Low short-term performance has passed TPMS and ADAS prospects are promising
The company released its 2019 Interim Report and achieved a total of 15 operating income in the first half of the year.
20,000 yuan, an increase of 33 in ten years.
6%; net profit attributable to shareholders of the listed company is 0.
57 trillion, down 34 a year.
0%; budget benefit 0.
Consolidated Overseas and other consolidations have promoted the rapid growth of the company’s revenue, but due to the increase in domestic income, the short-term growth of Prolife Germany, and the increase in research and development expenditures, net profit has increased, and performance has slightly exceeded expectations.
Domestic car sales are gradually picking up and TPMS will be fully installed next year. Baofu Germany is expected to gradually turn losses. The company’s performance is expected to stabilize and recover.
In addition, the company invested heavily in research and development of ADAS products such as surround view and millimeter-wave radar. The country ‘s six sensor business has obtained more fixed points from car companies, and multiple businesses go hand in hand with promising development prospects.
Affected by the slump in domestic automobile sales, we have lowered our performance forecast and expect the company’s earnings to be zero in 2019-2021.
98 yuan, 1.
53 yuan and 2.
00 yuan, maintain BUY rating.
The key points of the support level bring rapid income growth and pressure on short-term performance.
In the first half of the year, the company’s revenue increased by 33.
6%, of which domestic revenue was reduced by the impact of the decrease in automobile production and sales23.
At 1%, Baofu Overseas consolidated its overseas revenue growth by 80%.
9%, according to the product, valve and metal fittings increased slightly by 5 respectively.
8%, TPMS increased by 66 due to consolidation.
Affected by factors such as product price reductions and Baofu’s overseas expansion, gross profit margins decreased2.
Selling expenses increased by 60.
9%, mainly due to the consolidated salary increase of 17.06 million employees, brand royalties increased 8.84 million, customs duties increased 9.24 million.
Management expenses increased by 81.
9%, which was mainly due to an increase of 13.84 million in employee compensation due to consolidation and the increase of 1,343 million in intermediary fees such as acquisitions.
R & D expenses increased by 83.
3%, of which consolidated employee compensation increased 30.84 million, mold and trial production costs increased 10.12 million.
Financial 天津夜网 expenses increased by 121.
9%, mainly due to an increase of 14.52 million in interest expenses and an increase of 7.01 million in unrecognized financing expenses.
The four expense ratios are 24.
8%, an increase of 6 per year.
0pct, so net profit increased significantly.
Q2 realized income 7.
80,000 yuan, an increase of 41 in ten years.
8%, which is mainly due to consolidated contributions from Baofu Overseas; gross profit margin decreased by 3.
5pct, sales, management, research and development increased by 75.4%, 55.
1%, financial expenses increased by 11.78 million, and net profit attributable to mothers was zero.
2.2 billion, down 40 previously.
Domestic car sales are gradually picking up, Baofu’s overseas business is expected to gradually turn around, and the company’s performance is trying to stabilize and recover.
Wealth Overseas expects to gradually reverse its losses. The increase in TPMS domestic mandatory installation next year.
In terms of overseas markets, Pfizer Germany totaled 41 million yuan in the first half of the year, which was one of the leaders in the company’s poor performance.
The German OEM business projects have gradually entered the mass production stage. The after-sales business has a peak sales in September-November and the gross profit margin is relatively high. In the second half of the year, Baofu Germany gradually turned to a loss.
In the domestic market, the current penetration rate of TPMS is about 40%. National regulations mandate that new vehicles that are manufactured after 2020 be installed with TPMS to promote the market space to double.
The company is a major domestic TPMS supplier with a market share of over 20%.
The company joins hands with Huo Fu to expand new joint venture customers such as Mercedes-Benz and Volkswagen with promising development prospects.
Traditional business performance is solid, and new businesses such as ADAS and sensors have bright prospects.
In the first half of the year, the company’s traditional businesses such as valve valves and metal pipe fittings performed steadily, with revenue increasing by 5 respectively.
The domestic automobile industry has experienced a downturn in the automotive industry. The company still maintains high-intensity R & D investment, which is conducive to long-term development.
The company’s 360 surround view system is expected to begin mass production in the second half of the year. The millimeter-wave radar continues to be developed. The sensor will promote rapid development with the launch of the country’s sixth model.
The market space for new products such as cameras, surround view, millimeter wave radar, and sensors exceeds 100 billion yuan, and the development prospects are bright.
We estimate that the company’s estimated revenue for 2019-2021 will be 0.
98 yuan, 1.
53 yuan and 2.
00 yuan, considering that the company’s TPMS, ADAS, sensors and other fields have good prospects, maintaining the buying level.
The main risks faced by the rating are 1) car sales are lower than expected; 2) Sino-US trade friction is escalating; 3) new business is lower than expected.