Huayu Automobile (600741) Company Express: Industry downturn drags down performance, smart electric business continues to advance

Huayu Automobile (600741) Company Express: Industry downturn drags down performance, smart electric business continues to advance

Event: The company released its semi-annual report for 2019 and realized operating income of 705 in 2019H1.

6.3 billion, down 13 each year.

55%; net profit attributable to mother 33.

64 ppm, a decrease of 29 per year.

53%; deducted non-attributed net profit 28.

Ten percent of 09, a year-on-year decline of 15.


Opinion: The sluggish sales performance of downstream major customers has dragged down the company’s performance growth.

According to China Automobile Association data, domestic car sales in 2019H1 are 1,231.

840,000 vehicles, a decrease of 12 every year.

41%; sales volume of the company’s largest customer SAIC Group (income from SAIC accounts for more than 55% of the company’s total revenue) 293.

730,000 vehicles, a decline of 16 each year.


The scope of the company’s revenue and deductions from non-attributed net profit is roughly the same as the changes in industry and Shanghai automobile sales; the attributable net profit replacement range was mainly generated by Huayu Visual Consolidation in the first quarter of last year.

The investment income of 180,000 yuan was due to a high base in the same period last year.

The gross profit margin improved quarter by quarter, and the high R & D investment caused a slight increase in the expense ratio during the period.

2019H1 company gross profit margin 14.

68%, an increase of 1武汉夜网论坛 each year.

07 averages; quarterly, the gross profit margins in the single quarter of 2018Q4 to 2019Q2 were 13 respectively.

69%, 14.

28% and 15.

09%, showing a seasonal improvement trend.

During the period, the expense ratio was affected by the increase in the management expense ratio and surpassed the increase by 1.

34 averages to 10.

47%; the increase in the management expense ratio was mainly due to the increase in R & D expenses. The company increased its R & D investment in emerging areas.

28 ppm, a ten-year increase of 8.


Actively deploying emerging areas such as new energy and intelligent driving is expected to bring new points of performance growth.

Facing the unfavorable situation that the overall sales growth of the automobile industry is declining, the company is actively exploring new performance growth points, and has continued to develop from traditional fields such as automotive interior and exterior trim parts to new energy and intelligent driving.

In terms of new energy, the company’s drive motor series products have achieved mass supply to customers such as SAIC Passenger Cars, SAIC-GM, etc .; electric air-conditioning compressors, electric steering gears, battery trays and other products have obtained SAIC-Volkswagen MEB / MQB, SAIC-GM BEV3, etc.Fixed-point new energy vehicle projects on multiple platforms.

In terms of intelligent driving, the 24GHZ rear millimeter-wave radar achieves stable supply to customers such as SAIC Passenger Cars and SAIC Chase; the bus’s 77GHz forward millimeter-wave radar with automatic emergency braking function has passed national regulations and tests.

The subsequent implementation of new energy and intelligent driving new products and mass production delivery are expected to open up the company’s new growth space.

Investment suggestion: As the automotive industry gradually picks up in the second half of the year, the company’s performance growth rate is expected to rebound; in the medium and long term, the forward-looking layout of new energy and intelligent driving and other emerging fields is expected to bear fruit.

We predict that the company’s annual revenue from 2019 to 2021 will be 2 respectively.

38 yuan, 2.

49 yuan and 2.

67 yuan, return on net assets were 15 respectively.

5%, 15.0% and 14.


Maintain “Buy-A” investment rating.

Risk Warning: The automotive industry is recovering less than expected; the prices of raw materials have risen sharply; new product market development has fallen short of expectations.