China Automotive Research (601965) 2019 third quarter report performance review: in line with expected results continued to accelerate

China Automotive Research (601965) 2019 third quarter report performance review: in line with expected results continued to accelerate

Profits increase by 11% per year, and the company’s performance in line with expectations achieved revenue of 16 in the first three quarters.

8.9 billion (-15.

89%), realizing net profit attributable to mothers2.

8.7 billion (+11.

33%).

Achieved revenue in the third quarter alone 6.

0.6 billion (+8.

75%), achieving net profit attributable to mother 0.

97 billion (+15.

93%), the company’s overall performance is in line with our expectations.

Technical services: The average growth rate of revenue and net profit shows a quarter-by-quarter growth trend. The company’s parent company’s statements reflect the financial status of the technical service segment, and the technical service segment achieved revenue in the first three quarters.

3.9 billion (+16.

19%), net profit attributable to mother 2.
.

6.4 billion (+14.

29%).

Achieved revenue in the third quarter alone 2.

9.2 billion (+29.

78%), achieving net profit attributable to mother.

9.3 billion (+32.

86%).

Regardless of the technical service segment, both the revenue and net profit growth rate showed an upward trend quarter by quarter.

In the third and third quarters, the gross margin of technical services increased by a maximum of 1.

86pct, net interest rate fell by 0.

74pct, three rates increased by 0 for ten years.

81pct (mainly due to the increase in financial costs by 1 each year.

84pct).

Industrial manufacturing: The end of revenue has narrowed, and profitability has been stable compared to the first three quarters of the industrial manufacturing sector.

500 million (-30.

76%), realizing net profit attributable to mother.

2.3 billion (-14.

81%).

Achieved revenue in the third quarter alone 3.

1.4 billion (-5.

42%), realizing net profit attributable to mother 0.

0.4 billion (-71.

43%).

The profitability potential of the industrial manufacturing sector, 12 in the third quarter alone.
The 10% gross profit margin level was basically flat in the second quarter. The significant improvement in the company’s industrial manufacturing gross profit margin started from the third quarter of last year.
Gross Margin Relative Humidity

75 pounds per square inch with a net interest rate of 2 per thousand tons.

94pct, the three rates are maximized by 1.

53pct (mainly an increase in management expense ratio by 1.

53pct).

The risk reminds that the commercial vehicle industry gradually leads to the industrial manufacturing business revenue falling short of expectations, and the wind tunnel lab’s 四川耍耍网 commissioning progress is less than expected.

Investment suggestion: master the core technology of smart detection leader and maintain the “buy” rating in the short term, the company’s fundamentals are weakly related to the automotive incremental market and defensive, and at the same time generate absorption emissions and new business wind tunnel laboratoryPut into production.

In the long run, the company is a leader in the automotive field that has mastered core technologies. It is looking ahead to deploying intelligent network connectivity, expanding management improvements, and is expected to usher in steady growth in performance and expectations.

We maintain the company’s net profit attributable to the mother for 19/20/21 to 4, respectively.

62/5.

37/6.

09 thousand yuan, EPS is 0.

48/0.

55/0.

63 yuan, the current corresponding PE is 15 respectively.

0/12.

9/11.

4x, maintaining a reasonable estimate of 8.

64-9.

60 yuan (corresponding to 19 years PE18-20x), maintain “Buy” rating

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