Red Sun (000525) 2018 Annual Report Comments: Restructuring of gross profit margin drags down profits optimistic about long-term performance growth

Red Sun (000525) 2018 Annual Report Comments: Restructuring of gross profit margin drags down profits optimistic about long-term performance growth
Core point of view The company’s revenue grew steadily in 2018, and gross profit margin restructuring dragged down profits.However, we are optimistic that the company will improve the industrial chain through the deployment of new production capacity, and long-term performance growth can be expected.Due to lower product prices in the short term and higher-than-expected increase in raw material costs, we have lowered the company’s 2019/20 net profit return to motherhood to 7.02/8.76 million, cut target price to 24.2 yuan (origin target price of 30 yuan), maintain “Buy” rating. Operating income grew steadily, and gross profit margins dragged 厦门夜网 down profits.The company achieved revenue of 59 in 2018.08 thousand yuan, ten years +16.5%; sales of major products such as paraquat, diquat, and chlorpyrifos have driven sales upward.The company achieved first-class net profit attributable to mother 6.370,000 yuan, at least -10.8%, lower than expected.The company’s profit growth was mainly due to the shrinking supply of upstream raw materials, which led to rising production costs and a decline in gross profit margin.8 pieces to 28.9%. We believe that in the future, under the tightening policy environment of Anhuan, tightening supply and demand is expected to drive product prices upward, and the company’s gross margin improvement can be expected. Layout of multi-product capacity, long-term performance growth can be expected.In 2018, the company 1 candidate biochemical enemy grass fast, 1 involved in biochemical VB3, 2.The production capacity of 5 free radical biochemical phospholipid bases and 3,000 tons of biochemical glufosinate were successfully completed and put into operation. At the end of 2018, the company signed an investment framework agreement for the Chongqing Longevity Production Base Project and plans to invest 16.$ 8 billion to build 2 initial biochemical glufosinate projects.We are optimistic that the company will improve the integrated industrial chain by actively deploying new production capacity and launching new bases.After the above-mentioned production capacity is fully released, the company is expected to realize its production capacity and cost advantages to further increase market share, and long-term performance growth is expected. The acquisition of Chongqing Zhongbang was completed, and the industrial chain was effectively coordinated.In 2018 the company started with 11.8.6 billion yuan completed the acquisition of 100% equity of Chongqing Zhongbang, and the promised acquisition target net profit for 2018-2020 is not less than 64,449 / 8,477 / 11,214 yuan; in 2018, it achieved net profit of 68,200,000 yuan, exceeding the performance commitment.Chongqing Zhongbang’s feasible 2,3-dichlorothiophene and ZPT production capacity form an effective synergy with the company’s existing industry chain.We believe that the company’s market expansion is expected to increase under the background of the dichloro radical leading companies’ limited production and tight supply and demand pattern. Risk factors: intensified competition in the industry; less-than-expected release of production capacity; declining global demand for pesticides. Investment suggestion: As product prices decline in the short term and raw material costs increase more than expected, we lower the company’s 2019/20 net profit return to motherhood to 7.02/8.76 trillion (previous forecast was 11.49/13.560 thousand yuan), the corresponding EPS is 1.21/1.51 yuan; we predict that net profit attributable to mothers will be 10 in 2021.830,000 yuan, corresponding to EPS1.86 yuan.Based on the industry’s average expected level, the company was given 20 times PE in 2019, and the target price was reduced to 24.2 yuan (origin target price of 30 yuan), maintain “Buy” rating.

HKUST Xunfei (002230) Company Research: Steady growth in business performance, smart education and other business lines help frontline epidemic

HKUST Xunfei (002230) Company Research: Steady growth in business performance, smart education and other business lines help frontline epidemic
Event: HKUST Xunfei announces 2019 performance forecast: In 2019,深圳spa会所 the company will realize net profit return to mother.3 eight percent.900 million, an annual increase of 35% -65%. Performance has grown steadily, with a median forecast of 50% for the full year.In 2019, the company’s revenue is expected to exceed 10 billion U.S. dollars, and the scale of revenue has entered a new transformation; the net profit attributable to mothers will be 7.3 ppm-8.USD 900 million, an annual increase of 35% -65%; the estimated net operating cash flow is USD 1.5 billion.In 2019, based on the world’s leading artificial intelligence technology, the company continued to advance the “platform + track” strategy, and the results continued to appear. The winning of two large orders for smart education marked a significant change in the procurement model of education business.In December 2019, they won the US $ 1.6 billion project of Bengbu Smart School and the 800 million project of Qingdao Artificial Intelligence + Education, totaling 2.4 billion education orders, accounting for 30% of the 18-year revenue and 1 of the 18-year education business revenue.2 times, the large order represents a gradual demonstration application of the company’s education business.At the same time, important marginal changes have taken place in the procurement target. In the previous smart campus, smart classroom and personalized learning procurement, schools were used as the purchasing unit, the order amount was small, the approval process was long, and standardized implementation was poor.The two successful bidders launched this time were the Bengbu Education Bureau, the Huangdao District Education and Sports Bureau, and the Education Bureau ‘s project order scale as a unit. The higher the standardization of the school, it also means that the channel for education business has occurred.A noticeable change. Medical, education, government and other business lines are dispatched to support frontline epidemic prevention and control.Recently, the HKUST Xunfei Open Letter announced that in the fields of medical treatment, education, justice, government services, and operators, the use of independently controllable technologies and products to help prevent and control the epidemic, and form three-dimensional assistance.In the medical field, HKUST’s Feizhi Medical Assistant has analyzed 2.42 million primary medical records; in the education field, HKUST’s Feifei provides intelligent air classroom services to Hubei and other regions; in the government affairs field, the 19 million registered terminal government affairs app”On-line” new pneumonia prevention and control topics “; in the field of politics and law, artificial intelligence is used to assist police departments and help the government to effectively manage personnel involved in affected areas. HKUST’s net profit attributable to the parent company for 2019-2021 is estimated to be 8, respectively.4 billion, 14.0 billion, 21.90,000 yuan, maintain “Buy” rating. Risk warning: market competition is intensified; technology research and development is lagging behind and investment is not up to expectations; brain drain; increased accounts receivable and customer returns are not up to expectations; expenses may increase further.

Shiji Information (002153) Company Performance Express Review Comments: Performance Express Meets Expectations Platformization, Significant Progress in Internationalization

Shiji Information (002153) Company Performance Express Review Comments: Performance Express Meets Expectations Platformization, Significant Progress in Internationalization
Event: On the evening of February 27, the company released the 2018 performance report. The report stated that the company achieved a total operating income of 30.31 ppm, an increase of 2 over the same period last year.38%; net profit attributable to shareholders of listed companies4.35 ppm, an increase of 3 over the same period last year.71%. Investment advice: The company’s performance is in line with expectations and is at the bottom of the notice.In 2018, the company accelerated its transformation from a software supplier to the entire large consumer sector, with big data-driven application service platform operators, and made significant progress in platformization and internationalization.The growth rate of net profit attributable to mothers is 1 percentage point higher than the growth rate of operating income, and the operating efficiency has steadily improved.As a leading company in the large consumer field, the company has a clear industry pattern in the hotel sector. Cloud-based products have also been shortlisted for the international hotel group supplier list. In the retail sector, they have launched in-depth cooperation with Ali to lend Ali’s strongCapabilities, coupled with Shiji’s deep-seated informatization technology and resource accumulation for many years, among which Qiangqiangqiu tries to lead the new retail outlet in the future, and its future development is worth looking forward to.We predict that the company will achieve revenue of 30 in 2018-2020.3.2 billion, 34.00 ppm, 38.7.7 billion, achieving net profit4.3.5 billion, 6.1.9 billion and 7.9.3 billion yuan, EPS is 0.41 yuan, 0.58 yuan and 0.74 yuan, with reference to the closing price of 31 on February 27.99 yuan, corresponding to PE is 79 times, 55 times and 43 times, respectively, giving a highly recommended grade. Cloud-based products have achieved another breakthrough in the internationally renowned hotel group: According to the company’s official website on February 11th, Hyatt Hotel Group officially selected Infrasys Cloud, which Shiji belongs to, to manage numerous hotel restaurants and catering stores, which means that the company ‘sCloud POS products have officially entered the Hyatt Global Purchasing System.The entry of Hyatt’s global procurement system means that Shijiyun’s POS products have made another breakthrough in the world’s top hotels.At present, InfrasysCloud, the cloud-based POS product, has taken the lead in gaining recognition and adoption from top hotel major customers. In May 2018, Shiji’s cloud POS products achieved major customer breakthroughs for the first time and entered the InterContinental Hotel’s global procurement system.It is reported that Hyatt Hotel Airport uses the version of an overseas manufacturer. This shortlist of global cloud POS also increasingly shows that Shiji’s cloud POS has gained good product competitiveness and has been gradually recognized by major customers of the group.In the field of cloud POS, it has realized the replacement of overseas competition. Platformization and internationalization strategy continue to advance: In terms of platformization, business development is in a good shape. Through the continuous play of the company’s retail business sector synergy, the company’s payment platform traffic has maintained rapid growth, and the Changlian booking platform technology has further improved, and transaction traffic has achieved healthy growth.In terms of internationalization, in addition to cloud POS being favored by overseas customers, the company has also established new subsidiaries in India, Japan, Dubai, Macau, Thailand and other places, and strives to expand the company’s high-end hotel information system business to overseas markets and provide services to global customersIn terms of international investment, the company continued to focus on the hotel business. In 2018, it wholly acquired StayNTouch, Inc., a mobile hotel information system provider., Hotel big data analysis service provider Snapshot GmbH, golf and spa management solution provider CONCEPTEK-SISTEMAS DE INFORMAOS.One. Full cooperation with Ali in the field of large consumption: In the field of hotels, the two sides first conducted in-depth cooperation. As a provider of direct connection technology, Shiji linked the hotel information management 南京桑拿网 system with Ali’s travel management system, including the hotel system directly.The four areas of credit, product development of credit and living, connection of member service platform, and payment of bills by scanning code are convenient for Shiji Information’s hotel customers to better develop e-commerce business.In the field of catering, Shiji has opened the interface between the existing catering software and Alibaba related platforms, and successfully opened social restaurant and hotel group users from meal reservations, pre-orders, table scanning, ordering, electronic bill push,The closed-loop O2O business of online payment, takeaway and member registration, membership points, consumer voucher management, and electronic ticketing functions has improved restaurant marketing capabilities and reduced restaurant operating 杭州桑拿 costs.In the field of retail and payment business, the company has also conducted extensive direct cooperation with related platforms of Ali.The retail sector is still further integrating large-scale retail subsidiaries. The Shiji Retail Committee has been established. The specific cooperation with Ali’s new retail business includes cooperation on Hema Xiansheng, Taoxianda, and smart stores. Risk reminder: The development of new technology in the industry will gradually lead to technical risks; market and policy risks of the company’s traditional business relying on the development of the hotel industry; business management risks brought by the expansion of company assets and business scale; overseas investment risks; and progress in cooperation with Internet companies is uncertainSexual risk.

Taihe New Materials (002254): Spandex layout optimized, aramid production expansion drives growth

Taihe New Materials (002254): Spandex layout optimized, aramid production expansion drives growth

Introduction to this report: After the company’s spandex production capacity was shifted to the Ningxia plant, the cost advantage became apparent; the aramid technology led, the profit margin increased, and the production capacity was further expanded.

Investment Highlights: The first coverage is given an “overweight” rating with a target price of 12.

76 yuan.

We estimate that the company’s net profit attributable to its mother for 2019-2021 will be 1.

900 million, 3.

100 million, 4.

600 million, EPS is 0.

31 yuan, 0.

51 yuan, 0.

75 yuan, the growth rate is 22%, 63%, 46%, corresponding to PE is 34/21/14.

We use segment assessment to give the company a market value of 77 in 2019.

9.4 billion, corresponding to a target price of 12.

76 yuan, 19 years away from the current sustainable.

70% space.

The spandex 四川耍耍网 production capacity was gradually shifted to Ningxia. After the cost dropped, the losses gradually turned into profit.

The spandex industry is in a period of deep integration, and the company invested in Yantai Park1.

5 Introduce high additional balanced spandex to replace the old capacity. Invest 6 conventional spandex in Ningxia factory. The cost will decrease by RMB 1,000 / ton after the production.The net profit reached 1,200 yuan and the net profit was 90 million yuan, turning losses into profits.

Aramid capacity expanded and profitability increased significantly.

After the new capacity is put into production in 2021, the company will have zero.

6 cationic para-aramid production capacity, 1.

2 Insert meta meta aramid production capacity, according to the increase of application areas, respectively according 深圳桑拿网 to 3.

Calculating the net profit of 20,000 yuan and 20,000 yuan / ton, the company will achieve a net profit of 3 in the aramid sector in 2021.

70,000 yuan, ranking 2018 profit increased by more than 90%.

The localization of aramid is accelerated, and the production capacity of environmental protection is cleared.

Regarding the company’s positioning in the market as an alternative to traditional chemical fiber manufacturing enterprises, we believe that the company, as a leading company in the domestic aramid industry, belongs to the core technology of new materials companies, and can truly compete with overseas companies.

In particular, aramid’s main application areas are military protection and optical fiber, and trade friction will accelerate localization; at the same time, environmental protection will become stricter and the industry’s backward production capacity will be cleared naturally, and the company’s market share will further increase.

Risk warning: The project is put into production less than expected; the price of spandex continues to fall; the price of aramid raw materials rises.

China Pet Holdings (002891): Homeopathic and Expected Performance Release

China Pet Holdings (002891): Homeopathic and Expected Performance Release

Follow the trend and focus on the domestic market.

In the past three years, the company’s business has further focused on the domestic market and gradually completed the transition from export OEM to independent brand sales. The proportion of internal business in the next five years is expected to exceed 50%.

We believe that under the background of the rapid increase of domestic market demand and the continuous improvement of regulatory policies, high-quality domestic brands will usher in a golden period of development. The company focuses on the domestic market and builds independent brands is the correct choice to comply with industry trends.

Product + channel + brand strategy together create the prototype of a platform-based enterprise.

At the stage where the actual number of pet-raising people is driving the development of the industry, judging platform companies are trying to stand out.

In terms of the company’s product structure, while ensuring the steady development of snacks and canned food, it vigorously develops high-margin categories-pet dry food, and builds a full-category product structure of snacks + canned foods + staple foods. In terms of channels, it effectively identifies the current competitive situation where channels are king.In the past two years, we have vigorously developed online sales channels, and multiple sales channels have basically formed. In terms of brands, we have actively created a “naughty” multi-brand matrix with high, medium, and low coverage, which effectively covers the needs of multiple pet breeders.

Based on comprehensive judgment, the prototype of the existing company’s platform-type enterprise has basically formed, and the continuous improvement of its own competitiveness in terms of channels and brands is the key to performance release.

At the current stage, the company’s short-term performance is under pressure due to two factors, namely, the substantial increase in costs and the continuous increase in expenses.

However, we think the company’s gross profit margin is expected to stabilize and recover within the next three years.

In terms of expenses, the current brand and channel construction is the main investment direction of the expense side. We believe that in the current stage of development, vigorous brand and channel construction is the key to improving the company’s competitiveness and ensuring the release of future performance, 佛山桑拿网 so there is no need to over-allocate.

Investment suggestion: We predict that the company’s territorial business income will reach 3 in 2019-2021.

7/5/7.

200 million, operating income reached 17 respectively.

3/20.

6/24.

400 million, the company’s net profit reached 0.

64/1.

01/2.

8.8 billion yuan, corresponding to the current PE of 59.

9/37.

7/13.

21 times, give “Buy” rating.

Risk warning events: industry growth is not up to expectations, food safety issues, etc.

CICC Gold (600489): Thickening resources and overlapping assets injected into the gold price upward performance can be expected

CICC Gold (600489): Thickening resources and overlapping assets injected into the gold price upward performance can be expected

Investment Highlights: Event: The company releases its semi-annual report for 2019.

The company achieved operating income of 167 in the first half of 2019.

0.7 million yuan, an increase of 3 in ten years.

75%; net profit attributable to mother is 0.

73 trillion, down 41 a year.

08%, deducting non-attribution net profit 0.

61 ppm, down 43 years ago.

9%; the company’s basic earnings are reduced by 50% to 0.

02 yuan.

Gold reserves tend to increase, and resource thickening is expected to be strong: It is reported that the company’s gold metal resource reserves have reached 509 tons, making it the third-largest listed company in the country in terms of gold reserves.

Among them, the gold metal reserves of the company in 2018 and 2019H1 increased by 24 respectively.

6 tons (+ 5%) and 12.

6 tons (+2.

5%), the ongoing performance of the increase in resource reserves.

In addition, as the sole gold resource business platform of the China Gold Group, the company has obtained non-competitive commitments from China Gold.

China Gold Group has a total of 1,907 tons of gold resource reserves and 1022 cathode copper metal reserves, which will provide continuous protection for the company’s subsequent thickening of resources.

The output of main gold products decreased, and the output of copper increased slightly: the company’s 夜来香体验网 main gold product output increased in the first half of the year, of which the output of mineral gold, refined gold and smelted gold was -4.

53%, -10.

65% and -13.

66% to 11.

18 tons, 33.

10 tons and 7.

90 tons.

However, copper output increased slightly, and the company’s mineral copper and electrolytic copper each increased by +7.

12% and +1.

62% to 0.

Chapters 938 and 14.

4 nominal.

The decline in gold output is related to the company’s mine rectification in response to environmental protection policies, and the increase in copper output benefited from the completion of the second phase of the Zhongyuan Smelter.

H1 Zhongyuan Smelter’s debt-to-equity swap results in the company’s return to its parent’s net profit: Zhongyuan Smelter is an important source of profit for the company, and its contribution to the company’s net profit in 20183.

5.5 billion (second only to Sanxin Gold Copper 3).

900 million profit scale), accounting for 94% of the company’s maximum net profit.

2% (3.

7.6 billion); 2019H1 realized net profit1.

9.5 billion, but the ownership of the company replaces 0.

7.6 billion.

The high debt ratio of the Central Plains Smelter (87%) caused the company to carry out a debt-to-equity operation and increased minority shareholders’ equity to 60.

98% (the company’s shareholding is expected to be 39.02%).

Excluding this factor, the company realized a net profit of approximately 2 in the first half of the year.

66 trillion, ten years +2.

31%.

Multi-asset injection will boost the company’s performance: the company intends to purchase the Central Plains smelter through additional issuance and cash payment.

98% equity and 90% equity of Inner Mongolia Mining.

The Central Plains Smelter already has an annual output of 33.

With a capacity of 8 tons, 360 tons of silver and 35 tons of copper, its net profit in 2019 may be close to 400 million US dollars.

Inner Mongolia Mining has an initial annual production scale of 2475 and 17.

6-year service period, which verified the amount of copper metal 233.

4 Nominal @ 0.

144%, the amount of molybdenum metal is 55.

1 nominal @ 0.

034%, and there are 1,572 tons of associated silver.

Based on 88% copper and 74% molybdenum recovery rates, the mine produces approximately 5 inches of copper per year and 0 per year of molybdenum.

564 tons, with an annual output of nearly 33 silver.

2 tons, can meet July 2019.

4.6 billion net profit performance commitment.

Gold is still in an upward cycle, and the company estimates that there is room for improvement: the average domestic base gold price has been changed from H1’s 287.

7 yuan / gram (+5.

9%) to 297.

3 yuan / gram (+9.

5%), taking into account the continuation of the gold safe-haven premium, liquidity premium and exchange rate premium, and the consistency and continuity of the gold exchange behavior, the price of gold is still in an upward cycle, and the gold price will break through $ 1600 during the year.

As an upstream gold production company, the substantial increase in mineral gold reserves and output will push the company’s estimated space to open.

Profit forecast and investment grade: We estimate that the company’s operating income in 2019-2021 will be 36.8 billion yuan and 389 respectively.

500 million, 397.

7 ppm; EPS is 0.

11 yuan, 0.

13 yuan and 0.

19 yuan, corresponding PE is 90, 72 respectively.

5 and 50.

6.

The first coverage was given a “Recommended” rating.

Risk warning: The price of gold and copper has fallen sharply, the company’s gold output has fallen short of expectations, and additional issuance and acquisition risks.

Mind Control (603508) Quarterly Comment: High Equity Incentive Expenses, New Product Volumes Continue to Wait

Mind Control (603508) Quarterly Comment: High Equity Incentive Expenses, New Product Volumes Continue to Wait

Event: The company announced the third quarter of 2019, and the company achieved operating income in the first three quarters of 20197.

32 ppm, an increase of 84 in ten years.

65%; realized net profit of 7.

60 ppm, an increase of 431 in ten years.

61%; realized net profit attributable to mother 7.

$ 45 billion.

71%.

Single quarter analysis, the company achieved operating income in the third quarter of 20191.

67 ppm, an increase of 49 in ten years.

12%; net profit attributable to mother is 0.

21 trillion, down 41 a year.

85%.

In the third quarter, the volume of new LKJ products was limited, and the combined distribution and incentive costs were high.

The performance in the first three quarters of 2019 increased rapidly, and the net profit attributable to mothers continued to decline in the third quarter.

The company achieved operating income in the first three quarters of 20197.

32 ppm, an increase of 84 in ten years.

65%; realized net profit of 7.

60 ppm, an increase of 431 in ten years.

61%.

First, the first is to report the reasons for the collaboration with Lanxin Technology and report that the combined Lanxin Technology achieved operating income2.

USD 8.5 billion, with no budget for the same period last year; Second, report that the operating income of the original principal business of the consolidated company’s headquarters increased by 15 in the same period last year.

06%.

The company achieved operating income in the third quarter.

67 ppm, an increase of 49 in ten years.

12%; net profit attributable to mother is 0.

21 trillion, down 41 a year.

85%.

The essence of the decrease in profits is the increase in the cost of equity incentives, while at the same time increasing the margin of product gross margin reduction in the third quarter.

The company’s sales expense 杭州龙凤夜网 ratio, management expense ratio and R & D expense ratio in the third quarter were 7, respectively.

13%, 29.

89% and 25.

2%, an increase of 2 each year.

25, 16.

29 and 2.

56 averages, the cost rate increased significantly to 58 during the period.

78%, an increase of 18 per year.

The 27 units were mainly affected by the increase of the company’s equity incentive expenses, which dragged down the company’s third quarter performance.

2019 is the first year of LKJ15 promotion, and the number of new LKJ products will gradually climb in the future.At present, some road bureaus across the country have successively tendered LKJ15 systems, but the number is limited.

We compare the pace of LKJ2000 promotion. New products are relatively slow in the early stages of promotion. With the arrival of the replacement cycle of 北京夜网 existing equipment, the volume of new products will gradually climb, and it will contribute incremental performance in the future, and continue to be optimistic about the company’s performance growth.

Earnings forecast and investment rating: Thinking control is a warped domestic control system. The acquisition of Lanxin Technology forms a synergistic effect, and the progressive promotion of the LKJ15 system is superimposed, with good performance.

Taking into account the high level of fair incentive fees in 2019 and the pace of new product promotion has not accelerated, we expect the company’s net profit attributable to mothers to be 8-20 in 2019-2021.

01/3.

96/5.

180,000 yuan, given a “growth” rating.

Risk reminders: the pace of new product promotion exceeds expectations; serious investment in railway fixed assets deviates; systemic risks.

CICC: Intelligent brings automotive electronics investment opportunities optimistic about the five sub-tracks

CICC: Intelligent brings automotive electronics investment opportunities optimistic about the five sub-tracks

For stocks, please read Jin Qilin analyst research report, authoritative, professional, timely, and comprehensive, to help you tap potential potential opportunities!

  CICC: Automotive Electronics Investment Opportunities Brought by Intelligence CICC Finishes Automotive Industry Entering Technology Transformation Deep Water Zone, A.

C.

E.

The trend of S (intelligent, networked, electrified, and shared) means that cars have become a carrier of multi-industry integration.

We believe that this round of the automotive industry revolution will be a process that is based on electrification and cooperates with cross-border development of energy, communications, transportation and other fields to ultimately reshape the industrial ecology.

We have sorted out the automotive electronics industry chain, and we are mainly optimistic about the five sub-tracks.

  Investment Summary The automotive industry enters the deepwater area of technological evolution, A.

C.

E.

The trend of S (intelligent, networked, electrified, and shared) means that cars have become a carrier of multi-industry integration.

We believe that this round of the automotive industry revolution will be a process that is based on 西安耍耍网 electrification and cooperates with cross-border development of energy, communications, transportation and other fields to ultimately reshape the industrial ecology.

In this process, we believe that the three power systems should not be used as a substitute for traditional powertrains, but that all vehicle components are converted to electronic and digital directions, bringing basic data; the electrical architecture is accelerating to land,The access network produces a synergy effect of “vehicle-road-cloud-network”.

  We have sorted out the main segments of automotive electronics, combined with market size and monopoly level, and entered the cloud to sort. We are relatively optimistic about the Chinese parts suppliers’ five major tracks of smart cockpit, sensors, thermal management, lights and steering systems.development of.
  From the technical level, automotive parts have developed from traditional mechanical products to intelligent products controlled by electronic information systems. At present, electronic technologies are used in powertrains, vehicle controls, chassis systems, and communications.Application has caused exhaust emissions, safety, comfort and entertainment have been improved.

However, the requirements of smart cars go further. Advanced sensors and new technologies such as artificial intelligence are needed to make cars have the ability to drive autonomously and gradually become smart mobile spaces and application terminals.

In essence, intelligent cars put forward all-electronic requirements for all powertrain systems, body control systems, driver assistance and cockpit systems, safety and comfort systems, and intelligent driving systems.

  Chart: Overview of the automotive electronics industry chain under the current distributed electrical architecture Source: Marklines, strategic analysis, CICC Research (click image to view high-resolution image) The electrical architecture is accelerating towards the centralized direction through the electronics of a large number of automotive componentsWith the advent of ADAS, autonomous driving, active safety and other functions, the number of electronic control units (ECUs) in cars will increase significantly.

However, the existing electronic diversified electrical and electronic architectures have problems such as rising costs, redundant operations, slow replacement speeds, and multiple user experiences.

  In order to solve the above problems, the future automotive electronic and electrical architecture will gradually move to the domain architecture, and the direction of central computing architecture will become the consensus of the industry.

Under the domain architecture, the body is divided into different domains, and each domain controller is responsible for processing data in that domain.

Under the central computing architecture, the central computing platform processes the entire vehicle data to achieve optimal decision-making, and the cloud server is also responsible for the storage and calculation of some data.

  Chart: Trends in the changes in the automotive electrical and electronic architecture Source: Bosch, CICC’s research department driven by intelligent connected vehicles, the size of the Chinese / global automotive electronics market will reach USD 131.6 / USD 47.6 billion in 2025 According to Strategy Analytics, IHS Based on the data of automobiles and other institutions, we calculate the market size of various fields according to the following formula: total market size = system unit price * (automobile output * system penetration rate).

  Chart: China’s automotive electronics market will nearly double from 2020-2025, CAGR2020-2025 is about 13.

5% Source: IHS, Strategic Analysis, CICC Research Research Chart: Global automotive electronics growth is slower than China, CAGR2020-2025 is about 5.

5% Source: IHS, Strategy Analytics, CICC Research Department’s value transfer from sub-components to systems and software. We divide the investment opportunities of automotive electronic circuit into current stage and five years later (under domain architecture and central computing architecture).).

  At this stage, due to consumer demand for safer, more environmentally friendly, and smarter cars, the development of automotive electronics is still dominated by the electronicization of sub-components; we believe that under the domain controller and central computing architecture,Systems and software will occupy a greater proportion in the automotive electronics investment track.

  Automotive electronic track under distributed architecture: It is recommended to pay attention to automotive chips. Under the distributed architecture of cockpit electronics and safety systems, there are many automotive electronic tracks.

We have selected 10 investment areas in the entire industry chain, namely the lighting system, braking system, steering system, transmission system in powertrain control module, and safety system in safety comfort module in vehicle and vehicle control modules., Thermal management, seats, sensors in smart driving modules, chips, cockpit electronics.

Among them, we artificially eliminated the power system, because the battery part is undoubtedly the most valuable, but we attribute it to electrochemistry more than automotive electronics.

  We classify the above 10 investment areas according to market size, degree of monopoly, and biological scores of entry doors (where the degree of interaction is scored in reverse order, taking into account that during the transformation of the industry, it is easier for Chinese companies on the track to take shape to accelerate penetration)A map of investment opportunities in the industrial chain, including chips, cockpit electronics, and thermal management.

  Chart: A map of investment opportunities in the automotive electronics industry chain under distributed control. It is recommended to focus on automotive chips, cockpit electronics and security systems. Source: CICC ‘s research department architecture and central computing architecture. Automotive electronics race track: Software investment value is significant.With the improvement of domain architecture and central computing, we have selected 6 investment areas in the entire industry chain, namely: chips, operating systems, application software, vehicle communication modules (OBU, T-Box), and drive test communication modules.(RSU), intelligent cockpit (center control screen, LCD dashboard, HUD).

  There are potential changes in the track investment opportunities under the domain structure, which are mainly reflected in the application value of automotive software.

At this stage, 85% of the value of first-class automobiles comes from hardware equipment or parts, and into automotive electronics under the domain architecture or central computing architecture, we judge that the value of software and content services has increased.

  We have scored the above 6 investment fields according to market size, degree of monopoly, and biological scores of entry doors to obtain a map of investment opportunities in the industry chain. Considering that after years of development of chips and smart cockpits, the degree of occupation in the domain architecture or central computing architecture is appropriatePromotion.
  Exhibit: A map of investment opportunities in the automotive electronics industry chain under domain control. The investment value of application software has significantly increased. Source: CICC’s research department.

  Source of the article This article is excerpted from: “New Energy and Intelligent Vehicle Series Report (IV): Intelligent Automotive Investment Opportunities” published on February 24, 2020. Wang Lei SAC Practice Certificate No .: S0080118040030 SFC CE Reference: BNN451 Li Lingyun SAC Practice Certificate Number: S0080517100001 SFC CE Reference: BMY306

China Automobile Research (601965): Q3 performance growth increased by 16%, improved as scheduled, and continued to accelerate

China Automobile Research (601965): Q3 performance growth increased by 16%, improved as scheduled, and continued to accelerate

The technical services business boosted the company’s Q3 performance by 16%, a significant improvement from Q1 / Q2. According to the financial report, the company’s revenue in the first three quarters was 16.

9 trillion, down 15 a year.

9%, of which the parent company’s main technical service business revenue in the first three quarters7.

40,000 yuan, an increase of 16 in ten years.

1%; net profit attributable to mothers in the first 3 quarters2.

870,000 yuan, an increase of 11 in ten years.

3%, of which the parent company’s net profit is 2.

64 ppm, an increase of 14 in ten years.

1%.

Company Q3 revenue 6.

1 ppm, a ten-year increase of 8.

8%, of which the parent company’s revenue is 2.

90,000 yuan, an increase of 29 in ten years.

6%; Q3 returns to net profit of mother 0.

97 ppm, an increase of 15 in ten years.

9%, of which the net profit of the parent company is 0.

93 ppm, an increase of 31 in ten years.

5%.

In terms of profitability indicators, the company’s Q3 sales gross margin was 29.

8%, an increase of 2 per year.

5pct, of which the gross profit margin of the parent company is 49.

1%, an increase of 2 per year.

1pct; Q3 net sales margin 16.

1%, increase by 1 every year.

1pc, parent company’s net sales margin 31.

8%, 0 per 合肥夜网 year.

5 points.

Benefiting from the high performance of high gross margin technology services, the company’s third-quarter performance growth rate has significantly improved, in line with the pre-judgment in our previous report. We believe that the company will continue to benefit from new energy vehicles, policies such as emission upgrades are good, and gradually pursueSpeed up.

The company’s book cash flow situation is better, the interest rate debt rate is low and the dividend rate is further improved. The space company’s book cash flow situation is better, and the company’s monetary funds from the end of the third quarter of 2009 to 19 were 2.

0 billion to 8.

9 trillion due to payment of 18 years cash dividend2.

At the end of the fourth quarter, monetary funds at the end of the third quarter fell by 30% from the beginning of the year.

The company’s accounts receivable at the end of the third quarter4.

4 trillion, an increase of 35% over the earlier period, mainly due to the acceleration of business execution progress, part of the budget will be repaid in the fourth quarter.

The company’s long-term capital-liability ratio is less than 5%, and interest-bearing debt / total replenishment capital is only 0.

1%?
0.

2%.
At the same time, the company’s dividend rate has continued to increase in recent years. The company’s dividend rate has increased from 16% to 60% in 14-18. There is still room for improvement in the future.
Investment suggestion companies have scarce standards for automotive testing, high barriers to entry in the testing industry, and upgrades in automotive standards and regulations. The introduction of new standards will drive the company’s testing business to increase volume and price. This year’s profit growth is expected to increase quarter by quarter.Establishment of data service providers and index platforms.

We expect the company’s EPS to be zero in 19-21.

49/0.

58/0.

69 yuan, the corresponding PE is 14 based on the latest closing price.

7/12.

4/10.

4 times.

Considering the company’s profit trend and historical estimates, we give the company 23 times PE estimates for 19 years, corresponding to a reasonable value of 11.

27 yuan / share, maintain “Buy” rating.

Risks suggest that new vehicle types and policies are not progressing as expected; new projects are not progressing as expected.

Wasion Information: Multi-level Expansion of Domestic IoT Intelligent Dashboard Advantage Supplier Business

Wasion Information: Multi-level Expansion of Domestic IoT Intelligent Dashboard Advantage Supplier Business

Key points of investment: The company is a leading domestic supplier of smart meters for the Internet of Things. The actual controller controls 74% of the company’s equity.

The company is a leading domestic IoT smart meter and IoT utility solution provider. It expands to water, gas, fire protection and other fields based on electric power smart meters. Its products completely replace the IoT perception layer, network layer and application layer, and downstreamCustomers mainly include well-known domestic enterprises such as State Grid and China Southern Power Grid.

Among the company’s existing businesses, the communication gateway business and the electric detection terminal accounted for 46% / 18% respectively.

The actual controller, Ji Wei, is composed of relatives who act in concert, and controls 74% of the company’s equity.

The company is in a stage of steady and rapid growth, and the gross profit margin is slightly delayed beyond stability.

The company benefited from the advancement of the Internet of Things in public utilities, and its main business continued to grow steadily, achieving revenue in 2016/2017/20186.

80/9.

95/10.

390 thousand yuan, CAGR23.

6%; net profit attributable to mother is 0.

81/1.

49/1.

7.7 billion, CAGR 48%.

In 2018, due to changes in the demand structure of the downstream power industry, the company’s relevant winning bids decreased, resulting in improved revenue and profit growth.

We believe that the Internet of Things for electricity, coal, water and other meters is a long-term trend, and the company’s business is generally in the channel of demand expansion.

The company’s consolidated gross profit margin for 2016/2017/2018 was 27.

35% / 35.

61% / 32.

68%. After experiencing the product expansion period and production optimization period, the gross profit margin has increased to a certain extent. However, due to the original growth of communication module products, the gross profit margin declined slightly in 2018. But overall, the company ‘s comprehensive gross profit margin is comparableThere are no significant differences between companies.

The company has rich experience in multiple core areas of IoT applications, and multiple fund-raising projects have contributed to the overall technological innovation of IoT.

As one of the earliest professional engineers and smart utilities manufacturers in the country, the company has independently developed multiple core technologies in the fields of communications, sensing, embedded systems, edge computing, etc., covering all levels of the Internet of Things.

At present, the company is researching and developing 16 industry-leading technologies around its main business, and the total estimated expenditure is about 1.
.

500 million.

In the past three years, the company’s core technology product revenue accounted for more than 98% of its operating revenue.

The company intends to raise funds for the science and technology board for the expansion of the IoT sensing layer equipment and technical transformation projects (total 1.

23 ppm), IoT network layer equipment expansion and technological transformation project (2.

500,000 yuan), comprehensive research and development center project of the Internet of Things (1.

4.7 billion yuan) to provide financial support while supplementing working capital (1.

300 million), for the company to achieve higher capacity expansion and technological innovation in the Internet of Things industry.

The company chooses a listing 西安耍耍网 standard with an estimated market value of not less than RMB 100,000 and a net profit of positive in the past two years and gradually not less than 5,000 million US dollars. We think it is appropriate to use a comparable company PE estimation method.

We believe that the company’s public utility Internet of Things technology and model has been fully matured, and its business has achieved high penetration in the downstream power market.The stages are close, and the PE estimation method of comparable companies should be used for estimation.

Risk reminder: high customer concentration, hindering expansion of downstream companies