Xingyu Co., Ltd. (601799): Earnings Exceeds Expectations, FAW-Volkswagen’s Headlights Contribute Significantly

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05/14/2020 0 Comment

Xingyu Co., Ltd. (601799): Earnings Exceeds Expectations, FAW-Volkswagen’s Headlights Contribute Significantly

Event: The company released a quarterly report for the evening of 19 in the evening and achieved revenue of 14.

200 million (+21).

2%), net profit 1.

7 billion (+30.

1%), benefiting from the increase in the proportion of headlamp LEDs, which has performed well in 北京桑拿洗浴保健 the industry replacement background in a quarter, and it is expected that the EPS will be 2 in 19-21.

76/3.

39/4.

12 yuan, corresponding to 24 in 19 years.

3xpe, maintain “highly recommended” rating.

Comments: 1. The income continued to grow at a high rate, and the performance side exceeded expectations FAW-Volkswagen + Nissan to ensure continued certainty on the income side.

We have continuously mentioned in the report that the company continues to benefit from FAW-Volkswagen’s new car cycle. 2018H2-2019H1 has entered the order release period. From 2019H2, in addition to the base contribution of FAW-Volkswagen’s new cars, global models such as Nissan Xuanyi continue to increase.

As far as 19Q1 is concerned, the new car T-ROC launched in 18H2, the remodeled Polaroid, and the Sagitar replaced in 19Q1 contributed 北京spa会所 to the increase in LED headlights, and promoted the company’s revenue to maintain 21 against the background of industry decline.

More than 2% growth.

Looking backwards, we believe that based on the current orders on hand and the existing model breakdown, 19 the progressive end of the revenue is highly deterministic.

On the performance side, the company benefited from the continuous improvement in gross profit margin on LED climbing.

Company 19Q1 gross profit margin 23.

3%, a year increase of 218pct, is the main reason for faster performance than income.

For the three fee rates, based on the retrospective research and development costs, 20 pct is optimized each year, and the management expense rate and financial expense rate are slightly optimized.

Operating cash flow remained superior, and construction in progress continued to increase.

The company’s downstream customers are mainly joint venture brands, with a stable repayment cycle and a net inflow of operating cash.

5.7 billion, a 77% increase in one year.

As for the investment cash flow, Foshan Xingyu and the Industrial Park are continuously investing in construction, and the net cash flow has been expanded, but the overall controllable.

2. Core logic: optimistic about the company’s core logic: industry, structure, performance 1) Industry: laser / diode gas-LED-ADB, the value of bicycles continues to double.

With the launch of the T-ROC in July 18 (all series equipped with LEDs), LED headlights have sunk to 150,000 models. Volkswagen, as a benchmark for joint venture car series, has led other joint ventures and independent brands to gradually adopt LEDs gradually, with a rapid penetrationPromotion.

At the same time, the industry is expected to usher in ADB’s second upgrade in the next five years.

The value of bicycles ranges from the halogen stage (400-500 yuan / piece) to the LED stage (800-1000 yuan / piece) to the ADB stage (more than 2,000 yuan / piece).

2) Layout: Import substitution is the mainstay, and sales volume is expected to climb to a higher level.

With cost, response speed, supply stability and service level, domestic-funded automotive lamp companies gradually expand their market share, and the domestic substitution effect is becoming more apparent.

On the basis of deeply binding FAW-Volkswagen, the company actively develops luxury brands such as BMW, horizontally expands mid-range joint venture brands such as FAW Toyota, Shanghai Tongtong Wuling, and develops independent brands such as Geely Chery Guangzhou Automobile. The current domestic market share is only 10%, and it will increase in the future.Space advantage.

3) Break through the Japanese supply chain and open up long-term revenue certainty.

The company entered an intensive order release period from the second half of 2018 to the 19th year. The new orders for 138 car lights undertaken in 16 years will be successively mass-produced (only about 108 in 17 years, so the 18-19 year cycle is stronger).Centralized release in the third and fourth quarters.

The short-term market is worried that after the release of FAW-Volkswagen’s new cycle, the company’s revenue growth is weak, but the breakthrough of the Japanese industrial chain proves the company’s strong business strength in market segments. After 19H2, Japan’s heavy volume can continue to grow steadily.