Jianghuai Automobile (600418): Deducting non-net profit improves sales pressure, but structure optimization

Jianghuai Automobile (600418): Deducting non-net profit improves sales pressure, but structure optimization

1-3Q results are in line with our expectations JAC announced 1-3Q results: revenue 371.

90,000 yuan, an increase of 2 in ten years.

4%; net profit attributable to mother 1.

2 trillion, corresponding to a profit of 0.

06 yuan, the company’s third quarter revenue of 102.

1 ‰, ten years ago 19.

2%, net profit attributable to mother-3.48 million yuan, a year-on-year increase.

1.2 billion.

In line with company performance forecast.

The development trend has significantly improved non-net profit, and the management and R & D expense ratio and minority shareholders’ profits and losses have soared.

The company’s non-net profit attributable to its parent for 1-3Q was -83.82 million yuan, a year-on-year increase of 7.4 billion yuan.

Under the pressure of further reduction of government subsidies, the company has reduced its internal costs and adjusted its product structure, which has significantly improved its profitability.

The company’s third quarter net profit turned negative. The main influencing factors included: 1) The company’s management and R & D expense ratios were the same, which was an increase of 1.

3ppt, 1.

9ppt to 7.

5%, the highest level in 15 years, mainly affected by the increase in Ankai’s employee compensation and employee termination benefits.

2) The profit and loss of minority shareholders 南京桑拿网 surged, which was mainly due to the obvious increase in 3Q results of the consolidated subsidiary Ankai Bus.

The proportion of more profitable models increased, and gross profit margin was boosted by structural optimization.

The company’s sales in 3Q19 were affected by large-tonnage small-scale standards and passenger car emissions upgrades, with sales increasing 21% to 8.

50,000 vehicles.

From the perspective of the trend, we expect the company’s light truck sales are expected to gradually pick up, and the impact of large tonnage and small standards is gradually digested.

Among the overall models, the share of light trucks for profitability expansion is the same, which is 10ppt higher than last month and 8ppt to 46.

8%, while the share of passenger cars with weak profitability was the same, down 11ppt month-on-month, and 7ppt to 37.

4%, the improvement of the structure brought the company’s average bicycle price and gross profit rate both rose, of which the gross profit rate decreased by 3 ppt to 10.

9%.

We believe that the company’s traditional advantages in the field of commercial vehicles should be constantly solidified so that the profit structure continues to be optimized.

Looking forward, the listing of Sihao has brought pressure on JAC Volkswagen to increase its one-time income growth and increase performance.

JAC Volkswagen’s first pure electric SUV model, the Sihao E20X, was officially launched at the end of September. JAC Volkswagen’s marketing expenses will increase, and the company’s investment income from joint ventures will increase.

The company issued an announcement in September that the government would levy part of the company’s employee apartments or receive compensation2.

About 1 trillion is expected to be reflected in the fourth quarter, increasing the company’s performance.

Earnings forecast and estimation We temporarily maintain the company’s net profit for 2019/20202.

26 ‰ / 4.

7.5 billion.

It currently corresponds to 0 in 2019/2020.

7 times / 0.

7 times P / B ratio.

Maintain Neutral rating and 5.

Target price of 61 yuan, corresponding to 0.8 times 2019 P / B ratio and 0.

8 times the 2020 P / B ratio, 9 as compared with the recent inclusion

6% upside.

Risky sales continued to be lower than expected.