Top Group (601689): Depreciation in the first half of the gross margin dragged down by Tesla’s domestic expected injection of pure incremental

Event: The company announced its semi-annual report for 2019 and achieved operating income of 24.

38 ‰, 20 years ago.

70%, realizing net 杭州桑拿 profit attributable to mother 2.

11 ‰, 51 years ago.

76%, net of non-attributed net profit1.

99 ‰, an average of 49 in ten years.

25%, in line with market expectations.

The output of core customers such as SAIC-GM continued to decrease and suppress revenue, and the growth rate of shock absorber / chassis system business was relatively stable.

The company’s revenue in 2019H1 was 24.

38 ‰, 20 years ago.

70%, achieved quarterly revenue of 11 in the second quarter.

900 million, down 24 a year.

40%, mainly due to SAIC GM, the customer to the right of 2019H1, and Geely’s output fell by 25.

88% / 12.

45% caused the drag.

In terms of business, the sales of shock absorbers / interior features / chassis systems / intelligent brake systems were placed at 15 respectively.

38% / 34.

29% / 15.

49% / 31.

67%, technology-leading shock absorber and automotive chassis business have relatively stable growth rates. It is expected that orders such as aluminum alloy control arms for chassis business will contribute an important increase in performance in the future.

Gross profit margin was still dragged down by depreciation. Construction in progress in the second quarter decreased, and subsequent pressure to solidify was relatively reduced.

2019H company gross profit margin 24.

28%, a decrease of 3 per year.

10pct, mainly due to the continued drag on depreciation and amortization.

Depreciation amortization reached 1 in 2019H1.

34 ppm, an annual increase of 26%, adding about -1 to the company’s gross profit margin.

The effect of 19pct.

In addition, the gradual decline in revenue caused by the declining dilution of fixed costs per unit product also gradually reduced the overall gross profit margin.

Construction in progress / fixed assets7.


1.6 billion, down 45% / up 26% from the end of the previous quarter.

Many of these projects were completed, Zhejiang Topway, and Taizhou Toppu project investment progress reached 97.

8% / 66.

84%, the pressure on solidification of construction in progress is relatively reduced.

The book value of fixed assets is expected to reach a relatively high level in the third quarter, but there is still some pressure on subsequent depreciation.

Under the control of the company, the selling expenses decreased, and the management expenses / research and development expenses rose slightly.

In 2019Q2, the company effectively controlled the selling expenses to 1.

24 ppm, a decrease of 13 per year.0%; management expenses are affected by depreciation.

6% to 1.

900 million; 0.7 billion; R & D expenses are still further affected by new orders under research and rise more than 9.

5%, R & D expense ratio is still at 6.

66% higher level.

In the short-term, the recovery of the basic disk business will resume. Tesla will provide pure incremental fixed-point, light-weight vehicles for the long term, and intelligence will open up the growth space.

In the short term, from 2019 to 2020, GM has 6-10 new models such as CT3, and Geely has 15-20 new models on the market, bringing the recovery of the basic disk.

At the same time, after the localization of Tesla model3 / Y, Davis is expected to drive the industrial chain to double-click. The company has fixed-point orders such as Tesla aluminum alloy control arms.2019Q2-Q3 started fixed-point matching and obtained pure increase.

In the long run, the company’s cars will be lightweight (aluminum control arms, etc.) and intelligent (electronic 无锡夜网 evp and ibooster) will gradually increase volume.

Revise down earnings forecast and maintain overweight rating.

As the auto market as a whole is still at a relatively low point, we lower the company’s profit forecast and expect the company to achieve operating income of 47-20 in 2019-2021.

2 billion, 59.

5 billion, 70.

410,000 yuan, corresponding to a net profit of 4.

57 billion, 6.

2.7 billion and 7.

63 ppm, before -39%, 37% and 22%, the reductions were 46%, 36%, 35%, corresponding to 26 times, 19 times and 16 times the pe.