Weifu Hi-Tech (000581) Annual Report Comments: Annual Report Exceeds Expected Long-term Benefits Emissions Upgrade
Asset impairment dragged down performance. The 2018 annual report exceeded expectations. On April 23, the company released its 2018 annual report. In 2018, the company achieved revenue of 87.
21 ‰, at least -3.
28%; net profit attributable to mothers23.
96 ‰, at least -6.
82%; net profit after deduction is 20.
1.5 billion every year -13.
Subject to accrual of about 2.
The impact of the RMB 5.1 billion asset impairment provision reduced the company’s 2018 net profit, which was lower than our expectation.
The company’s traditional advantages The 天津夜网 main industry diesel common rail system and automotive aftertreatment system are expected to continue to benefit from the upgrade of emission standards and contribute to stable profitable growth; the extension of the acquisition of Danish IRD fuel cells, cut into the core component business of fuel cells, is expected to cultivate new business growth points and helpCompany transformation and upgrading.
We expect the company’s EPS to be 2 in 2019-2021.
82 yuan, maintain “Buy” rating.
The performance of associates grew steadily, and the company’s expense ratio and asset impairment ratio increased in 2018, and the company realized investment income.
56 trillion, +5 for ten years.
5%, accounting for about 75% of the company’s total profit.
The investment income mainly comes from the contributions of Bosch Automobile and China United Electronics, which the company has invested in. The two joint ventures will implement a net profit of 35 in 2018.
45 ppm and 18.
3.4 billion, respectively +3.
6% and 3.
The company’s 2018 expense ratio is approximately 13.
91% for ten years +1.
3pct, where the selling expense ratio is 2.
73%, ten years +0.
57 points, mainly due to the increase in salary and wage costs and three guarantees; the management expense rate reached 11.
33%, ten years +1.
01pct; Affected by the growth of interest income from deposits, financial expenses were -0.
2% per year -0.
28pct; R & D expense ratio is 0.
05%, ten years +0.
The company’s asset impairment loss ratio in 2018 reached 2.
88%, ten years +1.
The company intends to acquire the Danish IRD fuel cell, and cuts into the fuel cell core parts and components business company to issue an external investment announcement on March 28. It plans to establish a wholly-owned subsidiary in Denmark to acquire 66% of IRD fuel cell A / S equity for 7.26 million euros.According to the announcement, the Danish IRD company is committed to the research and development and production of fuel cell components. It has multiple patents in the field of fuel cells. The patent field involves membrane electrodes and bipolar plates. IRD has mastered advanced preparation technologies for membrane electrodes and graphite composite bipolar plates.Key products include membrane electrodes (MEA) and graphite composite bipolar plates (BPP). At the same time, IRD has stable technical partners and customer resources in Europe, the United States and China, and its products have been recognized by domestic and foreign customers.
We believe that the company’s acquisition of IRD’s equity will help the company cultivate new business growth points and help the company transform and upgrade.
The beneficiary country has upgraded its emissions and maintained a “Buy” rating. We believe that the company’s high-pressure common rail system products and exhaust gas treatment products will continue to benefit from the improvement of emission standards. The company’s diversified business layout will promote the stability of the company’s performance growth.
According to data from Gasworld, the cumulative sales of heavy trucks in 2018 were about 1.15 million units. Considering the conversion of heavy truck sales, we believe that about 1 million heavy trucks will be sold in 2019, or about -13%.
The company’s business is heavily related to heavy trucks. We estimate that the company’s net profit attributable to mothers in 2019-21 will be 25.
4.3 billion (down 13 in 19/20).
7% / 15.
61%), the corresponding EPS is 2 respectively.
The average PE of a comparable company in 2019 is estimated to be about 11 times. Considering that most of the company’s profits come from investment income, the company is given a 10-11 times PE estimate for 2019, corresponding to a target price of 25.
72 yuan, maintain “Buy” rating.
Risk reminder: The heavy truck industry is worse than expected; the progress of the emission 无锡夜网 standard upgrade and the implementation of policies are weaker than expected; the company’s operations and extensions are worse than expected.