Key points of investment:
In the first three quarters of this year, the company's operating revenue reached 20.221 billion yuan, up 3.14% year-on-year. The net profit of the owner of the parent company was 755 million yuan, down 15.88 percent year-on-year, or 0.16 yuan per share, lower than market expectations. In the third quarter, the company's operating revenue reached 6.177 billion yuan, up 21.85% year on year and down 4.97% month on month. Net profit was 185 million yuan, up 217.66 percent year-on-year and down 58.43 percent month-on-month. Earnings below expectations 癿 main reason is: in the third quarter quarterly rate than expected, the joint venture investment contribution during below expectations.
New products continue to launch, the gross profit margin is stable
Since the beginning of this year, the company has continuously launched a number of high-end micro cars, luxury cars and other products, and its profitability has been significantly improved. In the third quarter, the company's gross profit margin was 18.41%, while in the second quarter, the gross profit margin was 18.59%, basically unchanged, up 7.6 percentage points year-on-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, the expense ratio exceeded expectations
As the management expenses increased by 192 million yuan, the company's expense ratio increased by 1.84 percentage points. 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.
The investment income contribution of the joint venture is lower than expected
In the third quarter, the company achieved an investment income of 283 million yuan, up 57.22 percent year-on-year and down 33.72 percent month-on-month. 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 achieved sales of 32,100 vehicles in the third quarter, down 37.17% from the previous quarter.
Investment recommendations and ratings
In the 12~13 years, EPS was 0.21 yuan and 0.41 yuan, corresponding to PE 24.5 times and 12.6 times. Maintain "overweight" rating.
Risk warning
The company and the joint venture company's product marketing efforts, the effect is not up to expectations.