Huayu Automobile (600741) 2019 First Quarterly Report Review: Performance Meets Expectations Quality Assets Consolidation Expectations Continue to Fulfill

In the 深圳桑拿按摩网 first quarter, the non-profit deduction fell by 15%, and the performance was in line with expectations. The company’s revenue in 2019Q1 was 355.

7.1 billion (-11.

62%), achieving net profit attributable to mother 18.

4.5 billion (-36.

61%), realizing deducted non-attributed net profit13.

6 billion (-15.


The significant landing of the company’s attributable net profit was mainly due to the pre-premium premium of about 900 million from the acquisition of Huayu Vision in the first quarter of last year.

According to data from the China Automobile Association, the first quarter of 2019

42%, the company’s main customer SAIC Volkswagen (29%).

6%) Production increased by 19.

6%, SAIC-GM (17%).

9%) Yield decreased by 14.

2%, SAIC Group as a whole twice in the first quarter15.

88%, plus factors such as year-on-year declines, and excluding the impact of Huayu’s visual consolidation, the company’s overall performance is in line with our expectations.

The merger is expected to continue to materialize, and some companies that have verified the high level of profitability of their assets intend to acquire the remaining 30% of Shanghai Industrial Transportation Electric Co., Ltd. for RMB 444 million.

After the completion of the transaction, the company’s shareholding in Industrial Transportation was changed from 70% to 100%.

Shanghai Industrial’s main products are body controllers, door immobilizers, oil pump motors, glass lifters, horns and other automotive electrical and electronic products. The main customers are SAIC Volkswagen, SAIC GM, SAIC Passenger Cars, SAIC GM Wuling, Great Wall Motors, GeelyCars etc.

Shanghai Industrial consolidated sales revenue in 201823.

7.5 billion, net profit attributable to mother4.

29 trillion, total assets 22.

0.6 billion, net assets 9.

8.8 billion.

First, the transaction corresponds to the acquisition of PE of about 3.

45 times, it is expected to further bring equity premium in the later period of cheap acquisition.

Second, we estimate the net profit of Shanghai Industrial 18.

06%, ROE is 43.

42%, while Huayu Automotive’s 2018 net margin was 6.

65%, ROE is 17.

69%, both the net interest rate and the average ROE are significantly higher than the overall level of Huayu Automotive, eliminating the market worries that continued acquisition and integration will bring about the ROE decline.

Risk warning: The progress of overseas integration is less than expected, and the annual decline in parts and components will increase.

Investment logic: steady growth in performance, continuous business optimization The company is a leader in the field of internal components and international interior decoration, and has the potential to become an international component giant in the medium and long term.

The company’s performance has grown steadily over the years. At the same time, the company first released new energy, intelligent driving and lightweight forward-looking technologies. As a result, the company belongs to the highly-varying variety of components.

Taking into account that the automotive industry has become more significant in the first quarter, we have adjusted the company’s performance and expect to achieve a net profit of 73 in 19/20/21.



8.5 billion, if excluded from the increase in fair value in 20189.

2.6 billion, we expect the company’s net profit in 2019 to increase by about 2% year-on-year.EPS are 2 respectively.



72 yuan, the current corresponding PE is 9 respectively.



3 times, giving 12-15 times PE, corresponding to a reasonable estimated interval of 28.


25 yuan, maintain “Buy” rating.