Depth-Company-Fuyao Glass (600660): Q3 gross profit margin improved month-on-month, overall SAM prospects look promising

Depth * Company * Fuyao Glass (600660): Q3 gross profit margin improved month-on-month, overall SAM prospects look promising

The company released the third quarter report of 2019, and achieved operating income of 156 in the first three quarters.

30,000 yuan, an annual increase of 3.

4%; net profit attributable to shareholders of the listed company.

500 million, down 28 a year.

1%; budget benefit 0.

94 yuan.

Q3 achieved operating income of 53.

500 million, an increase of 6 in ten years.

1%; net profit attributable to shareholders of the listed company.

4 ‰, a decrease of 39 per year.

6%, lower than expected performance.

Domestic car sales are sluggish,天津夜网 the acquisition of SAM business is still in the consolidation period, the gross profit margin of float sales has decreased, and the company’s performance has been under short-term pressure.

With the gradual recovery of domestic automobile sales, the integration of SAM and the improvement of float sales, the future performance will be promoted.

Aluminum trim products significantly increase the value of bicycles and are expected to open up new growth space.

The continuous upgrade of product structure is expected to drive performance growth.

We expect the company’s estimated earnings for 2019-2021 to be 1.

27 yuan, 1.

49 yuan and 1.

74 yuan, downgraded to overweight rating.

Key points of support level Q3 deduction of non-performance reduction narrowed, gross profit margin increased sequentially.

The company achieved revenue of 156 in the first three quarters.

300 million US dollars, an annual increase of 3.

4%, domestic revenue is expected to fall, but overseas markets are growing; gross margin is 37.

4%, a decline of 5 per year.

3pct was mainly affected by the replacement of the gross profit margin during the acquisition of SAM during the merger period, and the replacement of the gross profit of float glass sales. The replacement of the above factors affected the stable gross profit margin.

In terms of expenses, sales and management expenses increased by 3.

6%, 5.

4%, basically in line with revenue; R & D expenses fell by 10.

0%, due to expected cost control; financial expenses increased by 33.

8%, mainly due to the decrease in exchange gains; four expense ratios of 19.

7%, flat for one year.

Revenue increased slightly, but gross margin increased, and net profit fell 28.

1%.

In Q3, the decline in domestic automobile production and sales narrowed, and revenue increased by 6 per year.

1%, gross margin fell by 6.

9pct but up 1 from the previous month.

1pct, sales and management expenses increased by 4.

7%, 1.8%, R & D and financial expenses decreased by 17 respectively.

5%, 8.

0%, deducting non-net profit drops by 20 each year.

3% but the decline narrowed, and net profit attributable to mothers decreased by 39.

6%, the average decrease is mainly due to the recognition of one-time gains on the sale of subsidiary equity in the third quarter of 20184.

500 million led to a higher base in the same period.

Excluding the effects of aluminum trim and equity transfer income, EBITDA margins remained stable in the first three quarters.

The integration of SAM is progressing smoothly, and the prospect of increasing the value of bicycles is expected.

The company completed the acquisition of the German SAM aluminum bright stripe assets in February 2019. The merger period dragged down the improvement in gross profit margin and performance.

At present, the integration work of the German factory is progressing smoothly, and the increase in Q3 is narrowed. It is expected that the integration of Q1 will be completed next year, and it is expected to become a new growth point in the future.

The value of the aluminum bright trim bike is 150-200 euros, which exceeds the automotive glass, and it is trying to open up new growth space for the company.

In addition, the company’s automotive glass can be integrated with aluminum bright decorative strips to support integrated products, and the development prospect is promising.

The product structure has been continuously upgraded, and the float sales have promoted improvement.

The development direction of automotive glass products is safety and comfort, energy saving and environmental protection, intelligent integration, and product upgrades are expected to bring unit price increases.

In the first three quarters, the company’s proportion of high value-added products such as heat insulation, sound insulation, and edging vertical increased by 2 compared with the same period last year.

2pct, the product structure upgrade is expected to bring an increase in average unit price, which is good for the company’s revenue and performance growth.

As for float glass, domestic automobile production and sales are gradually recovering, and American automobile glass production and sales are increasing. In the future, the impact of float float sales on performance is expected to improve.

It is estimated that in view of the continued sluggish domestic car sales, we have lowered our profit forecast and expect the company’s earnings to be 1 in 2019-2021.

27 yuan, 1.

49 yuan and 1.

74 yuan, downgraded to overweight rating.
深圳桑拿网

The main risks facing the rating 1) Sino-US trade conflict escalates; 2) Automobile sales are lower than expected; 3) Raw material costs increase.

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