The point of the investment:
Company in the first three quarters of business income of 20.221 billion yuan, up 3.14% from a year earlier. Belonging to parent company owners net profit of 755 million yuan, fell 15.88%, earnings per share 0.16 yuan, below market expectations. Among them, the third quarter, the company's business income is 6.177 billion yuan, up 21.85% from a year earlier, fell by 4.97%; Net profit of 185 million yuan, up 217.66%, fell by 58.43%. Earnings below expectations 癿 main reason is: in the third quarter quarterly rate than expected, the joint venture investment contribution during below expectations.
Continue to launch new products, gross margin from stable
Since this year, the company continue to launch the boediono, under many high-end minicars, car products, such as profitability improved significantly. Quarterly in the third quarter, the company gross margin was 18.41%, no basic flat quarterly profit margins in the second quarter of 18.59%, rose 7.6% year-on-year in the same period last year. We expect that as a new SUV CS35 future company, changan 癿 the magnitude of the new products, the company product gross margin level will also have certain 癿 room to improve.
During the third quarter quarterly rate than expected
Due to management fees significant monthly increase of 192 million yuan, the company during the rate rose by 1.84%. Management fees rose by 癿 reason, we think the main is the company's r&d 癿 rose, throughout the year, r&d cost from last year's 1.2 billion yuan is expected to decline.
Joint venture investment contribution to lower than expected
In the third quarter to realize return on investment of 283 million yuan, up 57.22% year on year, fell by 33.72%. We believe that the decline of the investment income from 癿 reason mainly lies in the joint venture companies such as changan ford sales profitability 癿 slipped. Among them, the long forma quarterly to achieve sales of 117600 vehicles in the third quarter, fell by 9.1%, while the new fox continue to moderate, but the other 癿 old product price cut, channel expansion, such as effect on r&d, bicycle level of net profit margin is expected to sequential declined slightly; Because from the end of the year to early next year, changan ford will launch wing tiger, wing beat two competitive 癿 SUV, is expected next year, the company 癿 profitability is expected to have improved significantly. In addition, changan suzuki quarterly to achieve sales of 32100 vehicles in the third quarter, fell by 37.17%.
Investment advice and rating
12 ~ 13 years EPS to 0.21 yuan and 0.41 yuan, the corresponding PE 24.5 times, 12.6 times. Maintain "overweight" rating.
Risk warning
Companies and joint venture product market dynamics, failed to reach expected effects.