Xingyu Co., Ltd. (601799) Semi-annual Report: Short-term dragged by the industry overseas will be the future growth point

Investment points: The growth rate outperformed the industry in the first half of the year, and the net profit growth rate of 19Q2 was dragged down by major customers.

19H1 company revenue increased by 10 in ten years.

48%, net profit attributable to mothers increases by 13北京夜网.
.

10%, profit growth rate is greater than revenue growth rate, outperforming the passenger car industry sales growth rate.

In 19Q2, the company’s revenue increased slightly by only half a year.

59%, net profit attributable to mothers decreased by 0.

10%, we judge it is mainly caused by the increase in output of major downstream customers.

  The upgrading of the automotive lamp product structure drove up the gross profit margin, and the gross profit margin in 19Q2 achieved improvement over the same period last month.

The gross profit margin of the company in 19H1 was 23.

45%, an annual increase of 1.

81 pcts with a net profit of 12.

54%, an annual increase of 0.

29.

By quarter, the company’s gross profit margin increased by 19Q2.

49 pct, up by 0 from the previous month.

35 pct, we judge that the increase in 成都桑拿网 the company’s gross profit margin is mainly due to the increase in the penetration rate of high value-added LED products.

  The expansion of new projects is progressing steadily, and the expansion of production capacity is progressing in an orderly manner.

In the context of the continuous decline in industry sales, 19H1 companies approved the production of 23 new model projects, a slight decrease compared with the same period of 18 years, but the new project development is still steadily progressing.The company’s future development continues to provide strong guarantees.

In terms of capacity expansion, the second phase of the Foshan factory in 2019 has been completed, and the first phase of the Intelligent Manufacturing Industrial Park is expected to be completed in 19Q3.

  The expansion of overseas markets has begun to accelerate, and the company plans to invest in Serbia4.

700 million new factories.

In order to further enhance the company’s international competitiveness and effectively expand overseas markets, the company plans to invest about 4 in Serbia.

700 million yuan to build a car lighting and parts factory.

The construction period of the project is initially planned for 2020-2023, and the production capacity is planned to be 5.7 million lights / year.

It is expected that the sales income will be increased after the project reaches full capacity.

2.4 billion euros, investment payback period 8.

29 years.

  Earnings forecasts and investment advice.

We judge the company is affected by the increase in the output of the country ‘s major customers, and the growth rate of revenue in 19Q2 will slow down. It is expected that the company ‘s revenue in 19Q3 will still return to the growth rate of the index.The continued contribution of products will drive the company’s continued profit growth.

It is estimated that the company’s net profit attributable to its parent in 2019-2021 will be 7 respectively.

69/9.

77/12.

23 ppm and EPS were 2.

78/3.

54/4.

43 yuan.

With reference to comparable companies’ estimated levels and taking into account the company’s higher growth, it is given 25-27 times PE in 2019, corresponding to a reasonable value range of 69.
50-75.
06 yuan, maintaining the “primary market” rating.

  risk warning.

The sales of new models of major customers were lower than expected; the quality risks of new products;