Weifu Hi-Tech (000581): Both net revenue and new business merge smoothly and M & A progresses

Weifu Hi-Tech (000581): Both net revenue and new business merge smoothly and M & A progresses smoothly

Event: On April 29, 2019, Weifu Hi-Tech disclosed the 2019 1 quarter report.

In the first quarter of 2019, the company realized total operating income22.

7 trillion, five 都市夜网years ago 5.

09%.

Realize net profit attributable to mother 6.

9 ‰, 12 years ago.

12%.

After deducting non-return to the net profit of the mother 6.

1 ppm, reducing by 11 per year

32%.

Opinion: The downstream market continues to weaken, and both net profit and revenue decline.

In the first quarter of 2019, the automotive market continued its weakness, and downstream demand did not improve significantly.

Affected by the downstream demand growth rate, the company’s operating income and net profit fell steadily, and the company’s short-term operating pressure penetrated.

In the first quarter of 2019, the company’s operating income decreased by 5.

09%, net profit attributable to mothers decreased by ten years.

12%.

Various countries have released the implementation schedule of National VI, and core component leaders will win new space.

In 2019, many provinces have issued National Six emission schedules, various auto companies have launched National Six models, and National Six emission standards have officially entered the implementation stage.

As a leader in the subdivision of power system components, the company’s energy-saving product system is rich, and it clearly benefits from the upgrading of China VI emissions.

Layout advanced new technologies ahead of schedule, and new types of business proceeded smoothly.

The company actively responds to the strategy of new energy and intelligent network connection, deploys new energy vehicle drive technology, promotes hydrogen fuel cell technology, and builds R & D capabilities for intelligent network connection technology.

The company established SPV company in Denmark, acquired the equity of IRD company, entered the field of fuel cell core parts, and related work smoothly Ruijin.

Profit forecast and rating: Affected by the higher-than-expected expectations of the automotive market, we expect Weifu Hi-Tech’s operating income from 2019 to 2021 to be 8.2 billion, 8.7 billion and 9.3 billion US dollars, respectively, and the net profit attributable to the parent company will be 23 respectively.

200 million, 23.

9 ppm and 24.

700 million, corresponding to a diluted EPS of 2佛山桑拿网 .

3 yuan, 2.

37 yuan and 2.

45 yuan.

The core enterprises of automobile core components are solid as a whole, the automobile emission standards are prolonged, and the passenger car business develops smoothly.

The company has benefited from the precise upgrade of automobile emission standards. We maintain the company’s “overweight” rating.

Risk factors: The risk of rapid growth of the automobile market falls; the risk of accelerated development of the new energy vehicle market; the emerging business development is less than expected.