Xingyu Co. (601799) Annual Report Comments: Performance Meets Expected Project Customer Escort

Xingyu Co. (601799) Annual Report Comments: Performance Meets Expected Project Customer Escort

Event description The company released its 2018 annual report, which was consolidated and the company realized operating income of 507,406.

730,000 yuan (one year +19.

24%), of which main business income was 458,799.

820,000 yuan (+19 a year.

81%).

Incident review improved profitability, performance in line with expectations.

In Q4 2018, the company’s gross profit margin was 25.

86% (up 5 from the third quarter of 2018.

04pct), selling expenses 3.

38%, an increase of 0 from 2018Q3.

62pct, management expense ratio and financial expense ratio are 3.

04%, -0.

08%, respectively, down from the third quarter of 20182.

97pct, 0.

12pct.

In 2018, the company achieved net profit attributable to mothers6.

110 thousand yuan (ten years +29.

91%), sales gross margin 22.

56% (up from 2017.

99pct), performance is basically in line with expectations, sales expense ratio, management expense ratio and financial expense ratio are 2.

85%, 6.

14%, 0.

03%, a decrease of 0 from the previous year.

10pct, 0.

64pct, 0.

13 points, profitability has improved.

Sufficient projects + high-quality customers to escort the company’s performance.

Project size: In 2017, the company undertook 72 new lamp projects, and approved 104 new lamp projects. In 2018, it undertook 73 new lamp projects, and approved 102 new lamp projects.The steady growth of the company’s performance is sufficient for the foundation.

In terms of customers, the company’s customers include FAW-Volkswagen, SAIC-Volkswagen, SAIC-GM, German BMW, General Motors, FAW Toyota, and GAC Toyota. General Motors’ complete vehicle manufacturing enterprises. The company’s automotive lamps are mainly used for new car matching, performance and production of new passenger cars.Relevance is strong, and high-quality customers at home and abroad provide a higher margin of safety for the company’s performance increase.

R & D expansion, focusing on product intelligence.

Breakthrough and intelligence is one of the important development directions of automobiles, and the lights will 北京夜网 gradually develop into electronics and intelligence. The company has been actively deploying intelligent products.The project is expected to be completed in 2019.

At the same time, the company’s 2018 R & D expenses are about 1.

810,000 yuan (ten years +0.

71%), costs continue to increase, meanwhile, the company has now formed a complete independent research and development system, and therefore the headlamps, NDAS intelligent headlamps, LIN / CAN control RGB beam lights, size dual-light LED lens components mean R & Dsuccess.

With the transformation of research and development results, the company is expected to further enhance its technical strength, increase the value of product bicycles, optimize its product structure, and expand its competitive advantage.

The investment proposal estimates that the company’s EPS for 2019-2021 will be 2 respectively.

82\3.47\4.22, corresponding to the company’s closing price of 59 on March 28.

19 yuan, PE is 21 for 2019-2021.

00\17.04\14.01, maintain “Buy” rating.

Risks exist: The automotive industry is weaker than expected; the sales of supporting models are lower than expected; the macro economy continues to decline.