Depth * Company * Xingyu Co., Ltd. (601799): High-performance growth and gross profit margin continued to increase

The company released the third quarter report for 2019, and achieved a total of 41 operating income in the first three quarters.

100 million, an increase of 10 in ten years.

2%; net profit attributable to shareholders of the listed company.

3 ppm, an increase of 21 per year.

0%; yield 1.

92 yuan, the performance is slightly higher than our expectations.

The automobile market in 2019Q3 has improved and the company’s customers are of high quality. The LED headlights have entered a heavy volume period. The gross profit margin has continued to increase and performance has achieved rapid growth.

In the future, the company is expected to achieve a cost-effective advantage to continue to increase the domestic city share, and it is expected to open overseas markets, with broad room for growth.

The company’s estimated earnings for 2019-2021 are 2 respectively.

72 yuan, 3.

44 yuan and 4.

27 yuan, maintain BUY rating.

  The main points of the support level are markedly integrated in the industry, and the gross profit margin continues to increase.

Benefiting headlamp projects such as Baojun 530 and LED headlamps such as FAW-Volkswagen Troc, New Bora, and Magotan have been successively produced and released. The company’s revenue increased rapidly in the first three quarters of 2019.

In the first three quarters of 2019, domestic passenger car production increased by 13.

1%, the company’s performance in long-distance industries.

Benefiting from the increase in the proportion of headlights with higher prices and higher gross margins, the gross margin reached 23.

7%, +2 per year.

3 points.

Selling expenses for half a year -1.

0% is expected to be mainly due to the decline in freight and after-sales service fees; management costs +21 every two years.

4% is mainly due to the increase in employee compensation and depreciation amortization; financial expenses -18 every six months.

7% was mainly due to the increase in interest income; R & D expenses were +21 per +.

1% is mainly due to the company’s continuous development of new project research and development; the four expense ratios total.

8% +0 per year.

3 points.

Revenue growth and gross profit margin increased, and the company’s net profit achieved rapid growth.

The output of passenger cars in Q3 2019 is ten years -7.

3%, +7 from the previous quarter.

3%, the automobile market has picked up, and the company’s revenue has increased by +9.

7%, +9.

0%, gross margin 24.

2%, ten years +3.

4pct, ring than +0.

6 points.

Sales, management, R & D, and financial expenses increased by +7 in the third quarter of 2019.

6%, +7

5%, +14.
6%, +283.
9%, four expense ratios total 9.

0%, ten years +0.

2pct.

The company’s revenue and gross profit margin increased rapidly, and net profit exceeded and a quarter-on-quarter respectively.

9%, 13.

5% rapid growth.

  The high quality of customers and the continuous acquisition of new orders have driven the company’s continued high growth.

FAW-Volkswagen and Japanese cars are the company’s main customers, accounting for about 70% of its business. FAW-Volkswagen’s sales in the first three quarters increased by +0.

7%, the company supplemented T-roc, new Polaris LED headlights, Magotan and Sagitar also turned to LED headlights and developed new models; Japanese car sales grew strongly, with a market share of 21 in the first three quarters.

7%, +3 per year.

Two points, Dongfeng Nissan, Guangzhou Automobile Honda, Dongfeng Honda, FAW Toyota and Guangzhou Automobile Toyota sold 3.07 million vehicles, +8 each time.

1%, the company supporting a variety of headlamps, taillights and other products, the second half of the new Guangfeng Zhixuan LED headlights and Nissan Xuanyi headlights, to promote the company’s sales and performance improvement.

In 2019, the company won the headlights and taillights of Yifeng Highlander’s sister models, the taillights of Guangfeng Highlander, and the taillights of Beijing Benz GLC.High growth.
  Product upgrade + independent substitution + overseas expansion, the development space is broad.

The company’s LED headlights have entered the volumetric period. The LED headlights are 800-1,200 yuan / piece, and the LED taillights 武汉夜生活网 are about 1,200 yuan / set (4 pieces), which is 2-4 times the price of halogen and capillary gas headlights, and the value has increased significantly.

In addition, the company continues to invest in R & D and layout of smart car lights, with a clear growth path.

The competition in the auto market is intensifying, and auto manufacturers are under pressure to reduce costs. In the future, more auto makers will choose cost-effective independent manufacturers. At present, the company has a market share of about 10% in the domestic market.Customers, increase market share.

The company announced that it will invest 60 million Euros in Serbia (Eastern Europe) to build two new workshops from 2020 to 2023. It plans to produce 5.7 million lamps each year. The company has begun overseas expansion and has a bright future development space.

  It is estimated that the company’s estimated revenue for 2019-2021 is 2 respectively.

72 yuan, 3.

44 yuan and 4.

27 yuan, taking into account the company’s significant performance in the industry, LED headlights gradually increased volume, maintaining the buying level.

  The main risks facing the rating 1) The sales volume of supporting models is lower than expected.

2) New project progress and lower than expected gross margin.