Top Group (601689)： Increase in expenses and decline in gross profit margin drag down earnings growth
Top Group (601689): Increase in expenses and decline in gross profit margin drag down earnings growth
Performance is in line with expectations.
In the first half of the year, operating income was 24.
38 ‰, 20 years ago.
7%, net profit attributable to mother 2.
11 ‰, 51 years ago.
8%, net of non-attributed net profit1.
99 ‰, an average of 49 in ten years.
3%, EPS is 0.
The lower growth rate of net profit was mainly due to the decrease in gross profit margin and the increase in expense ratio during the period.
The increase in gross profit margin and increased investment in research and development led to an increase in the expense ratio during the period.
Gross profit margin was 26 in the first half.
0%, falling by 2 every year.
0 points; in terms of products, shock absorbers, interior features, chassis systems and automotive electronics gross margins decreased by 3 respectively.
5 and 7.
The two units are expected to be mainly affected by the industry’s overall destocking, raw materials, and rising labor costs.
Period expenses cost 15.
8%, an increase of 3 per year.
2 units; of which the management expense ratio (including R & D expenses) is 10.
6%, an increase of 3 per year.
0 per share. Management expenses increase annually due to increased depreciation of the plant.
6%, the company increased investment in research and development and led to increased research and development costs.
Net cash flow from operating activities 5.
48 ppm, an increase of 95 in ten years.
9%, mainly because the amount of overdue payment of bills payable has been reduced, and the state has reduced taxes and fees, and tax payments have decreased.
The ending inventory is 10.
9.3 billion, a decrease of 6 compared with the end of last year.
Due to the drag on sales of downstream car companies, the decline in interior and automotive electronics revenues decreased.
Revenue from shock absorber business in the first half of the year 9.
94 ppm, a 15-year average of 15.
4%; 杭州桑拿养生会所 Revenue from interior function business 7.
88 trillion, down 34 a year.
3%; chassis system business revenue decreases every ten years.
5%; revenue from automotive electronics business decreases by 31 each year.7%.
The company’s lightweight chassis products have been put on the market one after another. Customers include Tesla, BYD and other leading companies in new energy vehicles. The lightweight chassis project will provide an important driving force for the company’s profit growth.
The company’s automotive electronics business is advancing steadily. A number of electronic vacuum pump products have been supplied to many OEMs and classified as energy-saving models. The company has actively expanded the technology accumulated by electronic vacuum pumps and intelligent braking systems to develop more industry-leading 无锡桑拿网 productsIt helps the long-term development of automotive electronics business.
Financial Forecast and Investment Suggestions: Adjust the income and gross profit margin, and predict that the returns for 2019-2021 will be 0.
70 yuan (the original forecast was 0.
09 yuan), comparable companies are parts and automotive electronics related companies, comparable companies in 19 years PE average valuation 24 times, the corresponding target price is 12.
Buying level of 96 yuan.
Risk warning: NVH orders exceed expectations, electronic vacuum pumps, lightweight chassis sales are gradually expected, and price cuts on components affect profitability.