Sanhua Intelligent Control (002050): Traditional business is stable and there is ample space for new energy thermal management
Event Overview The company released its semi-annual report for 2019, achieving revenue of 58H1 in 2019.
31 ppm, an increase of 4 per year.
3%; net profit attributable to mother 6.
93 ppm, a ten-year increase2.
4%; net profit after deduction 6
42 ppm, 10-year average4.
By quarter, 2019Q2 achieved revenue of 30.
50 ppm, an increase of 1 per year.
2%; net profit attributable to mother 4.
34 ppm, an increase of ten years.
3%; net profit after deduction to mother 4.
32 ppm, with a ten-year average of zero.
Analysis and Judgment: Revenue: Rapid growth of overseas revenues and hedge of domestic revenue reorganization. In terms of products, the performance of ZERO zero revenue is bright. In terms of products, 2019 H1 refrigeration and air-conditioning electrical components business revenue of 50.
67 ppm, a 10-year increase3.
4%. Against the background of the weak global market demand in the first half of the year and the rising trade friction between China and the United States, the company’s leading industry integration guarantees that the traditional main industry as a whole remains stable; the auto parts business revenue7.
64 ppm, an increase of 10 in ten years.
6%. Although the demand for traditional automobiles was weak in 佛山桑拿网 the first half of the year, the thermal management business of new energy vehicles maintained rapid development, and the revenue of the auto zero business was outstanding.
By region, the domestic business revenue of H1 2019 was 29.
3.3 billion, down slightly by 2.
3%, overseas business revenue 28.
9.8 billion, an increase of 10 years.
9%. Thanks to the operation strategy, the rapid growth of overseas revenue has effectively hedged the fluctuation of domestic revenue.
By quarter, 2019Q1 / Q2 revenue growth rate was 7 respectively.
9% / 1.
2%, the month-on-month decrease in growth rate is related to Yaweiko’s revenue ranking.
Profit side: In the second quarter, the gross profit margin improved significantly month-on-month, and the increase in the expense ratio caused a drag on the net profit margin of the company in 2019H128.
32%, 0 per year.
68pct, energy consumption is the reduction and improvement of the gross profit margin of the refrigeration and air-conditioning electrical parts business and the auto zero business, and the restoration of the increase in the proportion of the auto zero business with a higher gross profit.
Gross profit margin of 2019 H1 auto zero business 32.
54%, an increase of 2 per year.
71pct, mainly due to the significant increase in revenue of new energy vehicle supporting products with higher gross profit margins.
In terms of quarters, 2019Q1 / Q2 companies’ gross profit margins were 25 respectively.
24% / 31.
The significant improvement of 12% over the previous quarter was mainly due to the company’s aggressive efforts to reduce costs through automated transformation and technological upgrades, as well as streamlining departments and staff.
In terms of expense ratio, the sales expense ratio is 4.
52%, increasing by 0 every year.01pct, management expense ratio 5.
22%, 0 per year.
81pct, mainly affected by rising labor costs, financial expense ratio is 0.
21%, a year up 0.
29pct, R & D expense ratio 4.
26%, a year up 0.
59pct, R & D investment has further increased, and the four expense ratios total 14.
22%, increase by 1 every year.
The increase in expense ratio will cause the company’s net interest rate to decrease by 0 in 2019H1.
46pct to 11.
The refrigeration and air-conditioning electrical parts business is still steadily growing. The company’s technological level is leading the world. According to the company announcement, the core products of electronic expansion valves, four-way valves, solenoid valves, and micro-channel heat exchangers have the world’s largest market share.
In terms of different products, the company will still benefit from the improved performance of refrigerators and air conditioners. At the same time, the consumption upgrade of dishwashers, coffee makers and the expansion of commercial refrigeration will also contribute a considerable increase to the company.
In terms of production capacity, the gradual release of production capacity at Vietnam’s factories will help the company effectively avoid the distortionary effects of Sino-US trade friction.
New energy vehicle thermal management business has ample room for growth. The company’s supporting new energy vehicle products have gradually evolved from parts to components, subdivided, in response to the turn of vehicle customers, and the trend of assembly procurement.Close to 5,000 yuan.
At the same time, the company actively expands overseas customers. At present, it has received orders from Mercedes-Benz, BMW, Valeo, Mahler and other overseas first-line customers. After the production in Mexico and Poland, it will serve North American and European customers more effectively.
The new energy vehicle industry has a bright future, and the thermal management business will be the core driving force for the company’s future growth.
Investment suggestion The company’s refrigeration, air-conditioning and electrical appliance parts business is operating steadily, and the leader must be difficult to shake. At the same time, we are optimistic about the development prospects of the new energy vehicle thermal management business.It will drive the continuous growth of the thermal management business revenue.
The company’s EPS for 2019-21 is expected to be 0.
69 yuan, corresponding to 21 for PE.
5, with reference to historical estimates over the past 5 years, the company is given a 25x 2019 P / E ratio, corresponding to a target price of 12.
75 yuan, the first coverage given “overweight” rating.
Risks suggest that the development of the new energy vehicle thermal management business is less than expected; the commercial refrigeration business development exceeds expectations; sales of air conditioners and refrigerators decline.