Jiangling Motors (000550): Q3 performance improved obviously long-term logic unchanged
Investment Highlights Event: The company released the third quarter report of 2019. The company achieved operating income of 20.4 billion in the first three 重庆耍耍网 quarters of 2019, an increase of 1.
08%, realized net profit attributable to mother 1.
58 ppm, a decrease of 27 per year.
93%, budget benefit 0.
Revenue increased slightly, and performance improvement was in line with expectations. In the third quarter of 2019, the company achieved net profit attributable to its mother.
99 ppm, the average growth rate over the same period of more than 190%, the company’s profitability gradually improved in line with expectations, the company’s performance will continue to improve in the future.
In the first three quarters of 2019, the company’s selling expenses3.
62 ppm, a year-on-year increase of 49%, mainly due to the increase in the cost of listing on the Territory.
In 2019, the company’s sales structure changed, and market competition intensified, which led to an increase in the company’s promotional spending. The company’s Q1 and Q2 were affected and penetrated, and Q3 improved significantly.
Continue to benefit from Ford’s new product cycle. The long-term logic remains unchanged. In the fourth quarter, the sales volume of the border will continue to climb, and the improvement of profitability will drive the company’s performance to continue to improve.
From the perspective of 3-5 years, the company will continue to benefit from Ford’s cost-effective SUV new product cycle. Domestic and export at the same time drive the company’s performance to maintain high growth, long-term logic unchanged, and performance certainty.
Earnings forecast and estimation We expect the company’s operating income in 2019, 2020 and 2021 to be 297.
60,000 yuan, 357.
80,000 yuan, 403.
800 million, net profit attributable to mother is 3.
740,000 yuan, 10.
10,000 yuan, 15.
600 million, EPS is 0.
43 yuan, 1.
17 yuan, 1.
80 yuan, we believe that the company will continue to benefit from Ford’s new product cycle in the future, the performance is expected to accelerate recovery and maintain a “buy” rating.
Risks indicate that the sales volume of the territories fell short of expectations, and domestic car sales continued to fall short of expectations.