Depth-Company-Baolong Technology (603197): Q3 non-performing performance doubled, TPMS and ADAS prospects are promising

Depth * Company * Baolong Technology (603197): Q3 deducts non-performance doubles growth TPMS and ADAS prospects are promising

The company released the third quarter report for 2019, and achieved a total of 23 operating income in the first three quarters.

60,000 yuan, an increase of 40 in ten years.

1%; net profit attributable to shareholders of the listed company.

200 million, down 1 year.

6%; budget benefit 0.

72 yuan.

Q3 achieved operating income of 8.

4 ‰, an increase of 53 in ten years.

4%; net profit attributable to shareholders of the listed company is 0.

60,000 yuan, an increase of 72 in ten years.


Prosperity Germany’s turnaround and domestic business improvement pushed its performance back on schedule, but it was still higher than expected.

Looking forward to the future, domestic car sales are gradually picking up. TPMS will be compulsorily installed next year. Baofu Germany will turn a deficit and the company’s performance will continue to improve.

In addition, the company invested heavily in research and development of ADAS products such as surround view and millimeter-wave radar. The country ‘s six sensor business has obtained more fixed points from car companies, and multiple businesses go hand in hand with promising development prospects.

We expect the company’s estimated earnings for 2019-2021 to be 1.

10 yuan, 1.

53 yuan and 2.

00 yuan, maintain BUY rating, continue to recommend.

The main points of the support level gross margin improved significantly, Q3 deduction non-performance doubled.

The company achieved revenue in the first three quarters of 23.

60,000 yuan, an increase of 40 in ten years.

1%, if PEX is deducted, Baofu Overseas, the MMS consolidation will increase by 6.

300 million impact, revenue growth 2.

5%, steady growth against the trend; gross profit margin 30.

9%, falling by 2 every year.

2pct is expected to be mainly due to product price reductions and Baofu Overseas’s first half expectation.

In terms of expenses, the consolidation of Baofu Overseas led to sales and management expenses increased by 56.

8%, 65.

2%, after deducting the impact of consolidation, sales expenses increased by 13.

0%, administrative expenses decreased by 1.

4%; R & D expenses increased by 71.

2%, which is mainly consolidated by Baofu Overseas (+0.

4.5 billion) and increased R & D investment (+0.

3.3 billion); financial expenses increased by 342.

5%, mainly due to the increase in interest expenses and the acquisition of some equity in Dill resulted in unrecognized financing costs of 0.

1.1 billion; four expense ratios of 23.

9%, an increase of 4 over the previous period.
3 points.
Consolidation brings increased revenue and expenses, but lower gross profit margins, and net profit is basically flat.

The decline in domestic automobile production and sales in Q3 narrowed, TPMS orders increased, and Baofu’s overseas business entered the peak sales season. Q3’s revenue increased by 53% sequentially.

4%, 7.

3%, gross profit margin decreased by 1 year by year.

6pct but up 3 from the previous month.

3pct, sales, management, R & D and financial expenses increased by 49.

1%, 38.

1%, 53.

1%, 275.

5%, net profit grows 72.

9%, deducting non-net profit increased by 94.

0%, performance recovered as scheduled.

Prosperity Germany turned losses, and the TPMS space doubled.

In terms of overseas 杭州桑拿 markets, the number of Baofu Germany in the first half reached 4100 million, and the German OEM business projects have gradually entered the mass production stage in the second half of the year.The main driving force.

In the domestic market, the current domestic TPMS penetration rate is about 40%. The company is a major TPMS supplier with a market share of more than 20%.

National regulations mandate new TPMSs to be installed on new vehicles manufactured after 2020 to double the market space.

The company’s orders increased rapidly in the second half of the year, and it gradually joined forces with Huo Fu to expand new joint venture customers such as Mercedes-Benz and Volkswagen, with promising development prospects.

Traditional businesses are sound and new businesses have a bright future.

In the first three quarters,返回码: 500 网站打不开?重查 PEX was excluded, Baofu Overseas, and MMS consolidation increased by 6.

Impact of 30,000 yuan, income growth 2.

5%, traditional businesses such as valve and metal fittings are expected to perform solidly.

Intelligent driving is the future direction. The company’s 360 surround view system supporting FAW and Geely is expected to be mass-produced in the coming year. The millimeter-wave radar continues to be developed. The sensor will promote rapid development with the launch of the country’s sixth model.

The market space for new products such as cameras, surround view systems, millimeter-wave radars, and sensors has exceeded 100 billion yuan. The company has entered the integrated vehicle supply system and has bright development prospects.

It is estimated that taking into account the improvement of overseas businesses, we have raised our profit forecast, and the company’s 2019-2021 earnings are expected to be 1.

10 yuan, 1.

53 yuan and 2.

00 yuan, maintain BUY rating.

The main risks faced by the rating are 1) car sales are lower than expected; 2) Sino-US trade friction is escalating; 3) new business is lower than expected.