Wanliyang (002434): Performance-building passenger cars automatically change into the harvest period

Wanliyang (002434): Performance-building passenger cars automatically change into the harvest period

Event: The company announced its 2019 Interim Report: 2019H1 to achieve 北京SPA会所 operating income of 20.

800 million, down 3 every year.

6%; net profit attributable to mother 2.

300 million, down 16 a year.

9%; deduct non-net profit 1.

3 ‰, a decline of 46 per year.

6%; performance is below our expectations.

  Q2 net profit margin was 21.

6%, waiting for stabilization and pick-up The company’s 2019H1 revenue and performance averages have fallen, and the essence is: 1) Domestic car sales have fallen in the first half of the year.

4%, affected by the downturn in the industry, the transitional income of China-California declines by 24 per year.

2%, revenue from the automotive interior business dropped 37% year-on-year.

0%, passenger car transition benefits from supporting mass production revenue growth of 7 per year.


2) The company increased investment in research and development, increased new capacity investment and construction, and increased operating capital requirements resulting in increased financial costs and other costs, which significantly replaced the company’s net profit.

3) 2019H1 Jinxing interior may be 3566.

A drag of RMB 70,000; 4) Non-recurring gains and losses for H1 2019 are mainly government subsidies received1.

10,000 yuan, net profit after deductions increased significantly.

In a single quarter, 2019Q2 achieved revenue 11.

200 million, down 2 a year.

2%; net profit attributable to mother 1.

200 million, down 21 a year.


In general, the downward trend of the industry in the first half of the year was difficult to resist, and the company’s major supporting customers had poor sales. The company’s performance was unavoidable under pressure, but it was still lower than expected.

  The gross profit margin has increased, and the ability to control fees weakens the company’s gross profit margin in 2019H126.

0%, a decrease of 0 per year.

6pct, of which: the gross profit margin of passenger cars is 25.

1% (-0.

4pct); gross margin of interior parts 12.

1% (-0.

4pct); light truck transition gross margin 28.

7% (-1.

2 pct); the gross profit margin of the transition card is 30.

5% (-0.


The company’s 2019H1 net margin is 11.

0%, down by 1 every year.

9 points.

In a single quarter, the company’s gross profit margin in Q2 2019 was 24.5% (-1.

1pc), net interest rate is 10.

3% (-2.

8pct), 2019Q2 three rates 17.

1% (+3.

2pc), where the selling expense ratio is 3.

5% (+1.

2pct), the management expense rate is 10.

2% (+0.

8pct), financial expense ratio 3.

4% (+1.

3pct), the company’s ability to control costs has weakened.

We believe that the transformation of the industry is picking up, and it automatically changes the amount of supporting high-quality customers such as Geely, and the company’s profitability promotes a stable recovery.

  Beneficiary China VI accelerates customer expansion, supporting Geely to open up growth opportunities. The company replaces China VI upgrade market opportunities, and continuously accelerates product technology upgrades and market customer expansion. Since June 2019, the company’s CVT18 and CVT25 are equipped with Geely’s vision X3 and vision.The national six molding of S1 has been put into mass production.

Since then, the company’s CVT products have been equipped with Geely’s Vision series, Emgrand GS, Emgrand GL and Chery’s Arize GX, and other national six models have noticed mass production.

We believe that the company is currently in the early stage of supporting Geely. Through the supporting Geely going deep, the independent leader Geely, whose production and sales scale has reached 1.5 million, has promoted the opening of new growth space for the company.

  Earnings forecast and investment recommendations predict that the company’s EPS for 2019-2021 will be 0.

34 yuan, 0.

41 yuan, 0.

49 yuan, the corresponding PE is 18 respectively.

1 times, 14.

8 times, 12.

4x, maintain the company’s “Buy” rating.

  Risk warning: The automotive industry is weaker than expected; the company’s products and customer expansion are worse than expected.