Fuyao Glass (600660) In-depth Report: Integration Steadily Advances New Business Development

Fuyao Glass (600660) In-depth Report: Integration Steadily Advances New Business Development
Fuyao Glass is a leader in the automotive glass industry.The company has a stable shareholding structure, specializes in the automotive glass industry, and has high R & D expenditures.The growth is good, and the compound growth rate of revenue exceeds the growth rate of automobile industry sales.The domestic market share is about 60% and the global market share is about 25%.Strong profitability, gross profit margin is about 40%, and net profit margin is about 17%. The automotive glass industry has three in the future.6% growth potential.The oligopoly of the automotive glass industry, CR4 is 88% worldwide.The industry has high capital barriers and a large scale effect.The future automobile glass has an average annual of 3.6% growth potential. Fuyao has obvious advantages and stable market segmentation.Fuyao and the Democratic Party have obvious advantages in ranking: 1.Focus on automotive glass, occupying more resources; 2.With core technology and high R & D investment; 3.Open up the industrial chain integration; 4.Strong cost control ability; 5.The domestic production capacity layout is perfect. Emerging + diversified, the future growth potential is expected.The company’s automotive glass business is temporarily stable in the future, mainly following changes in the downstream automotive industry.The US market is climbing as planned, and the Russian factory has received Volkswagen orders.The company lays out the new business of the aluminum trim industry chain, possessing the core technology of aluminum surface treatment, and German SAM has a large number of orders in hand, which is expected to open the domestic market. Earnings forecasts and investment advice.Based on the Chinese automotive glass business, the company replicates its core advantages to new markets and fields, is optimistic about increasing its share in the US market, and recommends that it focus on the business progress of aluminum trim parts.Due to the severe segmentation of the Chinese auto market in the first half of 2019, we have lowered our net profit forecasts for mothers from 2019 to 2021, respectively, to 36.700 million, 43.900 million and 47.500 million US dollars (current profit forecast for 2019-2021 is 45.8 billion, 50.900 million and 54.300 million), corresponding to PE of 14.9, 12.5 and 11.5 北京夜网 times, maintaining the “recommended” level. risk warning.1.The growth rate of the automobile industry is lower than expected: If the sales volume of the automobile industry continues to increase, it will affect the company’s profitability.2.Exchange rate changes: More than 40% of the company’s revenue comes from overseas. Exchange rate changes will have a transmission effect on the company’s profits.3.Price fluctuations of upstream raw materials: The main raw materials of automotive glass such as soda ash, PVB, etc., if the price rises, it will put pressure on the company’s costs.4.Sino-US trade war: Automotive glass is on the 250 billion tax increase list. If the Sino-US trade war continues or intensifies, it will affect the company’s profitability.5. The penetration rate of aluminum bright strips is lower than expected: If the cost reduction of aluminum bright strips is small and the penetration rate in the luxury car segment is lower than expected, it will affect the company’s operating income.